Hawaii is the latest state to try to capture tax revenue from online sales. Supporters of a bill that would tax out-of-state merchants on Hawaii sales say it will bring in $4 million annually.

“Without this legislation, it is possible for an out-of-state business to receive a favorable advantage over an in-state business selling the same items,” said Department of Taxation Director Kurt Kawafuchi. House Bill 1405 doesn’t affect consumers who buy directly from online retailers like Amazon. It targets Hawaii-based Web sites that make commissions on sales by providing links to Mainland companies...