STAND. COM. REP. NO. 3293

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1848

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1848, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require all general excise tax monthly returns to be filed electronically, beginning January 1, 2015.

 

     The measure also authorizes the Director of Taxation to assess an administrative fee on a monthly return that is filed manually.

 

     Your Committee received testimony in support of this measure from The Chamber of Commerce of Hawaii.  The Department of Taxation, the State of Hawaii Disability and Communication Access Board, the Tax Foundation of Hawaii, and one individual provided comments on the measure.

 

     Your Committee finds that the most efficient method of receiving tax returns is via electronic transmission, which requires significantly less resources to process than paper returns.  Your Committee believes that this measure will help ensure prompt payment of general excise taxes due to the Department of Taxation.

 

     Your Committee has amended this measure by:

 

     (1)  Requiring monthly filers to also electronically file their annual returns;

 

     (2)  Authorizing the Department of Taxation to waive the administrative fee for good cause shown, including disability-related causes;

 

     (3)  Allowing taxpayers to sign documents electronically;

 

     (4)  Reducing the threshold amount for mandatory electronic payment of taxes from $100,000 of tax liability per taxable year to $25,000 of tax liability per taxable year; and

 

     (5)  Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1848, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1848, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair