Hawaii advances bill requiring Internet sales tax

The Associated Press

HONOLULU (AP) - The Hawaii House of Representatives has approved a bill that would require retailers to collect taxes on Internet sales transactions.

It also would make third party referral websites that connect customers with sellers collect some taxes or face a penalty.

Democratic Representative Kyle Yamashita says that as the Internet becomes more popular, the state has to adapt with the times. He says the state also has to figure out how to maintain its revenues.

Republican Representative Gene Ward opposes the bill, saying that islanders import nearly everything they eat and shouldn't have to pay more taxes to get what they need. He said people are still struggling from the recession and trying to make ends meet.

House lawmakers passed the bill 42-9. It now moves to the Senate.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.