Report Title:

Taxes; Use Tax Overpayment

Description:

Extends statute of limitations where use tax duplicative payment was induced by department of taxation.

THE SENATE

S.B. NO.

3184

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO USE TAX OVERPAYMENT.

 

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

SECTION 1. The purpose of this Act is to afford relief to anyone in the State who was improperly directed by the department of taxation to make use tax payments to the State on the importation of property or services if the sale of that property or services was taxed to another taxpayer under the general excise tax.

SECTION 2. Section 238-7, Hawaii Revised Statutes, is amended to read as follows:

"§238-7 Audits; additional assessments; refunds. Sections 237-36 to 237-40 of the general excise tax law are hereby made applicable to the taxes imposed by this chapter, to the refunding of overpayments thereof, and to assessments, investigations, and audits in connection therewith, for which purpose any references therein to "gross income" or "gross proceeds of sale" shall be deemed to refer to the purchase price or value, as the case may be, subject to tax under this chapter, and any references to the "annual return" shall, if the taxpayer is not required to file an annual return under this chapter, be deemed to refer to the monthly return mentioned in the first paragraph of section 238-5[.]; provided, however, that if the department collects tax under this chapter on the importation of property or services for which the department collects duplicate tax under chapter 237 from the seller thereof, and affirmatively induces or demands payment of tax under this chapter, then a claim for credit or refund of the tax so overpaid may be filed at any time within six years after the taxpayer discovers or should have discovered the overpayment, notwithstanding section 237-40."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon approval.

INTRODUCED BY:

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