Bill Text: HI HB114 | 2018 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB114 Detail]
Download: Hawaii-2018-HB114-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
114 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 231-39, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) There shall be added to and become a
part of the tax imposed by [such] the respective tax or revenue
law, and collected as such:
(1) Failure to file tax return. In case of failure to file any tax return required to be filed on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that the failure is due to reasonable cause and not due to neglect, there shall be added to the amount required to be shown as tax on the return five per cent of the amount of the tax if the failure is for not more than one month, with an additional five per cent for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five per cent in the aggregate. For purposes of this paragraph, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return. This paragraph shall not apply to any failure to file a declaration of estimated tax required by section 235-97.
(2) Failure to pay tax.
(A) If any part of any underpayment is due to negligence or intentional disregard of rules (but without intent to defraud), there shall be added to the tax an amount up to twenty-five per cent of the underpayment as determined by the director.
(B) If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount up to fifty per cent of the underpayment as determined by the director.
(C) If any penalty is assessed under subparagraph (B) (relating to fraud) for an underpayment of tax which is required to be shown on a return, no penalty under paragraph (1) (relating to failure to file the return) shall be assessed with respect to the same underpayment.
(3) Failure to pay tax after filing timely returns. If a return is filed on or before the date prescribed therefor and the amount shown as tax on the return is not completely paid within sixty days of the prescribed filing date, there shall be added to the unpaid tax an amount up to twenty per cent as determined by the director.
(4) Interest on underpayment or nonpayment of tax.
(A) If any amount of tax is not paid on or before the last date prescribed for payment, interest on such amount at the rate of two-thirds of one per cent a month or fraction of a month shall be paid for the period beginning with the first calendar day after the date prescribed for payment, section 231-21 to the contrary notwithstanding, to the date paid.
(B) If the amount of any tax is reduced by reason of a carryback of a net operating loss allowed under chapter 235, such reduction in tax shall not affect the computation of interest under this paragraph for the period ending with the last day of the taxable year in which the net operating loss arises.
(C) Interest prescribed under this paragraph on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes.
(D) No interest under this paragraph shall be imposed on interest provided by this paragraph.
(E) If any portion of a tax is satisfied by credit of any overpayment, then no interest shall be imposed under this paragraph on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to the overpayment.
(F) Interest prescribed under this paragraph on any tax may be assessed and collected at any time during the period within which the tax to which the interest relates may be collected.
(G) This paragraph shall not apply to any failure to pay estimated tax required by section 235-97.
Any penalty or interest assessed under this section shall be accompanied by an explanation, including calculations, of how the amount of the penalty or interest was determined."
SECTION 2. 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 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval; provided that:
(1) Section 1 shall apply to interest payments made on or after January 1, 2018; and
(2) Section 2 shall apply to returns and payments due on or after July 1, 2017.
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INTRODUCED BY: |
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Report Title:
Tax Administration; Penalties and Interest; General Excise Tax; Monthly, Quarterly, or Semiannual Returns; Payments
Description:
Requires any assessment of penalty or interest on taxes to be accompanied by an explanation, including calculations, of how the amount of the penalty or interest was determined. Amends the date of filing of monthly, quarterly, and semiannual general excise tax returns from the 20th day of the respective applicable month to the last day of the month.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
