HOUSE OF REPRESENTATIVES

H.B. NO.

1300

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to taxation.

 

 

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

 


SECTION 1. The legislature finds that allowing all tax documents to be filed electronically will provide benefits to both the taxpayer and the State. Electronic filing of all documents will allow taxpayers particularly businesses to accomplish the filing in a timely and cost-efficient manner. For the State, electronic filling will decrease administrative costs and make more efficient use of human and fiscal department resources for more important issues, such as delinquent tax collections and enforcement.

The legislature further finds that amendments made by Act 196, Session Laws of Hawaii 2009, to advance payment of the general excise tax from the last day of the month to the twentieth day of the month have had a devastating impact on Hawaii businesses, particularly small businesses. While Act 196 achieved one of its purposes to generate a one-time windfall of revenue to the State the long-term effect has been to hinder Hawaii's economic recovery by placing an undue burden on the business sector.

In addition, in 2010, the senate committee on economic development and technology and the house committee on economic revitalization, business, and military affairs convened an informal small business discussion group to address the most critical issues facing the small business sectors within Hawaii's economy. Representatives from the Chamber of Commerce of Hawaii, construction and trades industries, community nonprofits, the agricultural sector, food and restaurant industries, retailing, the science and technology sector, the commercial transportation industry, and interested stakeholders developed a package of bills that address the most pressing problems facing Hawaii's small business community.

The purpose of this Act is to support the findings of the small business working group and recommendations to:

(1) Require the department of taxation to establish a system to allow taxpayers to file all tax returns, applications, reports, and other documents electronically, telephonically, or by optical means; and

(2) Reestablish the last of the month as the deadline for filing and payment of general excise taxes.

SECTION 2. Section 231-8.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]231-8.5[]] Electronic filing of tax returns. [The] (a) No later than July 1, 2011, the department [may allow filing by electronic, telephonic, or optical means of any tax return, application, report, or other document] shall establish a system to allow taxpayers to file all tax returns, applications, reports, and other documents required under [the provisions of] title 14 [administered by the department.] electronically, telephonically, or by optical means; provided that there shall be no additional cost to the taxpayer for the electronic filing. The date of filing shall be the date the tax return, application, report, or other document is transmitted to the department in a form and manner prescribed by departmental rules adopted pursuant to chapter 91. The department may determine alternative methods for the signing, subscribing, or verifying of a tax return, application, report, or other document that shall have the same validity and consequences as the actual signing by the taxpayer.

(b) A filing under this section shall be treated in the same manner as a filing subject to the penalties under section 231-39."

SECTION 3. Section 237-30, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The taxes levied hereunder shall be payable in monthly installments on or before the [twentieth] last day of the calendar month following the month in which they accrue. The taxpayer, on or before the [twentieth] last day of the calendar month following the month in which the taxes accrue, shall make out and sign a return of the installment of tax for which the taxpayer is liable for the preceding month and transmit the same, together with a remittance, in the form required by section 237-31, for the amount of the tax, to the office of the department of taxation in the appropriate district hereinafter designated.

(b) Notwithstanding subsection (a), the director of taxation, for good cause, may permit a taxpayer to file the taxpayer's return required under this section and make payments thereon:

(1) On a quarterly basis during the calendar or fiscal year, the return and payment to be made on or before the [twentieth] last day of the calendar month after the close of each quarter, to wit: for calendar year taxpayers, on or before April [20,] 30, July [20,] 31, October [20,] 31, and January [20] 31 or, for fiscal year taxpayers, on or before the [twentieth] last day of the fourth month, seventh month, and tenth month following the beginning of the fiscal year and on or before the [twentieth] last day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the taxes due thereon and the taxpayer's total tax liability for the calendar or fiscal year under this chapter will not exceed $4,000; or

(2) On a semiannual basis during the calendar or fiscal year, the return and payment to be made on or before the [twentieth] last day of the calendar month after the close of each six-month period, to wit: for calendar year taxpayers, on July [20] 31 and January [20] 31 or, for fiscal year taxpayers, on or before the [twentieth] last day of the seventh month following the beginning of the fiscal year and on or before the last day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the taxes due thereon and the taxpayer's total tax liability for the calendar or fiscal year under this chapter will not exceed $2,000.

The director, for good cause, may permit a taxpayer to make monthly payments based on the taxpayer's estimated quarterly or semiannual liability, provided the taxpayer files a reconciliation return at the end of each quarter or at the end of each six-month period during the calendar or fiscal year, as provided in this section."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act, upon its approval, shall apply to

taxable periods beginning after July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Taxation; Electronic Filing

 

Description:

Requires the department of taxation to establish a system to allow taxpayers to file all tax returns, applications, reports, and other documents electronically; provided that there is no additional cost to the taxpayer for the electronic filing; reestablishes the last of the month as the deadline for filing and payment of general excise taxes.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.