General Excise Tax on Rental Income Hawaii

[Chris Hicks]

Hello All, 

Just trying to get some clarification on why HI has a GET (General Excise Tax) on gross rent.  I have searched around with no answers.  I understand that you have to pay taxes on rental PROFIT.  But HI charges a GET on gross income regardless if you make a profit or not, then again for the profit once you file your yearly annual taxes for State.  The State requires you to file for your GET tax monthly, quarterly, or semi-annually depending on the amount of GET you will owe.  The State says the GET is for any business operated in HI.  But again to my knowledge your getting taxed twice.  Any clarification would be greatly appreciated.