UPDATE: June 30, 2008
The history of a tax that finally ends July 1, 2008
The Supreme Court Ruling
In a 1972 decision, the Tax Appeal Court, in the case of 711 Motors, Inc. ruled that an automobile dealer was not taxable on reimbursements received from a manufacturer for the dealer’s costs incurred in making good the manufacturer’s warranty on cars sold.
However, this ruling was reversed in 1973, in the Aloha Motors case. And in 1975, the Hawaii Supreme Court upheld the Aloha Motors ruling and said that payments received by automobile dealers from manufacturers for warranty service to customers are taxable sales.”
Excerpts-- Taxes of Hawaii 2008
by Aileen Utterdyke
Throughout the rest of the 70’s, the 80’s, the 90’s and up until July 1, 2008, in this decade, Hawaii dealers have been paying the 4% tax on the warranty payments from a manufacturer to fulfill a new car warranty.
On July 1, 2008—the tax is reduced to the half percent rate by ACT 89.
Click here for complete story.
Joe Nicolai’s helpful reminder
HADA legislative chair, Joe Nicolai, who was also instrumental in another helpful tax reduction bill for businesses, reminds dealers that the unemployment tax measure that passed last year, went into effect at the start of this year, lowering the wage base set for the unemployment tax from $34,000 down to $13,000 for 2008 because of the massive buildup in the fund due to low unemployment in the state. Dealers should ensure that they are not still paying unemployment tax on the higher 2007 wage base.
2008 Officers and Directors Elected at 48th Annual Convention
Kohala Coast, HI — The 2008 officers and directors for the Hawaii Automobile Dealers Association
(HADA) were installed October 4, 2007 at the Hapuna Beach Resort, Kohala Coast, island of Hawaii,
during the association’s 48th annual convention.
HADA is composed of the state's 77 franchised new car dealerships and an additional 80 associate members
whose businesses are affiliated with the retail automotive industry.
Click here for complete story.
HADA Mission Statement
The mission of HADA is to help auto dealers comply with the laws so as to make car buying by the public trouble free.
HADA is a nonprofit 501(c)6 Trade Association.
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Hawaii's dealers maintain a multi-BILLION dollar retail industry. |
|
Dealers
provide 4,000 well paying jobs in
Hawaii. |
|
Dealers
generate $300 million in tax revenue
for state and local government. |
To locate a dealer in your area, click
here.
For a complete list of automobile manufacturers, click
here.
