Business Report: New Law for cash businesses

Business Report: New Law for cash businesses

HONOLULU (HAWAIINEWSNOW) - Put this on your must-reading list: an article in the Sunday Honolulu Advertiser by Sean Hao - 'state tax squad zeroes in on cash-only businesses.'

Even if you personally don't operate a cash-only business, or don't think you do, you may know someone who's affected. That person should know some new rules that could turn some surprising people into enemies of the state.

A new law that took effect July first, gives tax officers the power to get warrants and search business records without notice. The law requires that any enterprise which does more than ten transactions a day must have a cash register and give receipts.

The tax department says it plans to go after only those businesses that do what it considers a high volume of cash business without paying taxes. But the way the law is written, it potentially affects any charity that sells goods to raise funds, as well as mom-and-pop operations that sell goods for fun without making a profit.

The law is written so that it's all about ten transactions or more per day.