Report Title:

Taxation; Filing Deadline

Description:

Requires conformance to federal tax filing deadlines.

HOUSE OF REPRESENTATIVES

H.B. NO.

1543

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CONFORMANCE TO FEDERAL TAX FILING DEADLINES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that pursuant to article VII, section 3 of the state constitution, the state tax review commission is charged with evaluating the State's tax structure and recommending revenue and tax policy.

At its most recent meeting, the tax review commission published its evaluations and recommendations on December 6, 2002. The commission focused on several areas including net income tax. The commission reported that Hawaii's net income tax rates are very high for both the rich and the poor and recommended phasing in a higher standard deduction and personal exemption, widening the income tax brackets, increasing federal conformity generally, and conforming to federal filing deadlines.

The commission also reported that there is no reason for the State to have shorter income tax filing deadlines than the Internal Revenue Service. Section 235-98, Hawaii Revised Statutes, currently provides that "Except in the case of persons who are outside of the United States, no extension [for filing an income tax return] shall be for more than six months. When corporations become members of or leave consolidated groups, or there are other types of corporate reorganizations, the Internal Revenue Service may provide for filing extensions of more than six months. Such taxpayers may have little practical choice but to disregard the State's shorter filing deadline, because they cannot realistically complete their state income tax return until their not yet due federal income tax return is completed.

SECTION 2. Notwithstanding any other law to the contrary, all tax filing deadlines under title 14, Hawaii Revised Statutes, relating to taxation, are amended to conform to the appropriate deadlines under the Internal Revenue Code.

The director of taxation may adopt rules pursuant to chapter 91 to effectuate this Act and shall submit any necessary legislation to effectuate this Act to the legislature twenty days prior to the convening of the regular session of 2004.

SECTION 3. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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