STAND. COM. REP. NO. 366

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1504

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Economic Development and Taxation, to which was referred S.B. No. 1504 entitled:

 

"A BILL FOR AN ACT RELATING TO ELECTRONIC FILING OF TAX RETURNS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to authorize the Department of Taxation, by rule adopted pursuant to chapter 91, Hawaii Revised Statutes (HRS), to require the electronic, telephonic, or optical filing of tax returns under certain conditions.

 

     Testimony in support of this measure was received from the Department of Transportation (Department).  The Tax Foundation of Hawaii submitted comments.

 

     Your Committee finds that electronic filing would begin with a small subset of taxpayers, such as those submitting fuel tax returns, tobacco tax returns, high technology credit claims, and other applications of special tax credits.  In addition, because the Department is required to adopt rules for electronic filing, the public would have ample opportunity to comment, and would be given substantial notice before the requirement is implemented.

 

     Your Committee supports this effort to increase the use of electronic filing by the taxpayer, and to increase the efficiency of the Department as a result.  Your Committee believes that one additional way to encourage increased electronic filing is to require that no service fee be charged for electronic filing.

     Your Committee has amended this measure accordingly, by:

 

     (1)  Requiring the Department, by rule adopted pursuant to chapter 91, HRS, to require electronic filing; and

 

     (2)  Providing that no service fee is required.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1504, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1504, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,

 

 

 

____________________________

CAROL FUKUNAGA, Chair