Hawaii: Sales Tax Handbook

Hawaii:

Are Optional Maintenance Contracts subject to sales tax?

While Hawaii's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in Hawaii, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Hawaii.

General Optional Maintenance Contracts

TAXABLE

In the state of Hawaii, the wholesale rate applies to a dealer's furnishing of goods or services to a purchaser of tangible personal property to fulfill a warranty obligation of the manufacturer of the property.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts

TAXABLE

Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Hawaii.

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