Hawaii Announcement: Tariff & Administration:Hawaii General Excise Tax on Ocean Shipping Services
June 30, 2011
HAWAII SERVICE ANNOUNCEMENT
Hawaii General Excise Tax on Ocean Shipping Services
Dear Valued Customer:
The State of Hawaii has passed new legislation that suspends temporarily the exemptions for certain persons and certain amounts of gross income or proceeds from the general excise and use tax and requires the payment of both taxes at a 4% rate. The suspension affects numerous companies in Hawaii including those that receive revenue from the loading and unloading of cargo.
Horizon Lines will not implement a new surcharge related to the new general excise tax law in Hawaii.
Under the new Hawaii law, Horizon Lines believes that our contract with our stevedoring services provider, Hawaii Stevedores, Inc., exempts Hawaii Stevedores from the obligation to pay the general excise tax with respect to the services it performs for Horizon Lines. As such, since Hawaii Stevedores will not be passing the tax onto Horizon Lines, Horizon Lines will not pass it on to its customers.
Horizon Lines will continue to implement the existing Neighbor Island Excise Tax Arbitrary (Tariff 468, Rule 346) at its current rate level of $13 per container.
While acting in accordance with the law, we are gratified that this provision will result in our customers not having to pass on new costs to their consumers.
If you have any questions, please contact your Horizon Lines Sales Representative or Customer Service at 1-877-678-7447.
Thank you for choosing Horizon Lines. Always There. Always Delivering.®