Bill Text: HI HB118 | 2011 | Regular Session | Introduced
Bill Title: General Excise Tax
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2011-02-15 - (H) The committee(s) recommends that the measure be deferred. [HB118 Detail]
Download: Hawaii-2011-HB118-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
118 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the general excise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the general excise tax is unfairly administered to the detriment of many hard working small business owners. Despite the severe economic slowdown and the statewide reduction in visitor spending, the general excise tax is still assessed and collected. This has crippled numerous small businesses and caused many owners to fall behind in their general excise tax filings or to not pay the tax. Many small businesses are on the brink of closing, and owners are often forced to choose between making payroll and paying the general excise tax.
If business owners are compelled under threats of criminal prosecution to pay general excise taxes, they will be forced to lay-off employees, which will cause needless exacerbation of an already overloaded state unemployment system, as well as threaten a substantial source of state tax revenue.
By making reasonable modifications to the general excise tax law, this Act assists small businesses to continue operating, while ensuring that all general excise tax obligations will be met.
The purpose of this Act is to provide general excise tax relief to overburdened small business owners.
SECTION 2. Section 237-30, Hawaii Revised Statutes, is amended to read as follows:
"§237-30 Monthly, quarterly, or
semiannual return, computation of tax, payment. (a) The taxes levied
hereunder shall be payable in monthly installments on or before the twentieth
day of the calendar month following the month in which they accrue[.];
provided that a grace period of thirty days shall apply to the payments if the
applicable return is timely filed pursuant to this subsection or the payment
qualifies under section 237-33. The taxpayer, on or before the twentieth
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 day
of the calendar month after the close of each quarter[, to wit]: for
calendar year taxpayers, on or before April 20, July 20, October 20, and
January 20 or, for fiscal year taxpayers, on or before the twentieth day of the
fourth month, seventh month, and tenth month following the beginning of the
fiscal year and on or before the twentieth day of the month following the close
of the fiscal year; provided that a grace period of ninety days shall apply
to the payments if the applicable return is timely filed pursuant to this
paragraph or the payment qualifies under section 237-33; provided further
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;]
$12,000; or
(2) On a semiannual basis during the calendar or fiscal
year, the return and payment to be made on or before the twentieth day of the
calendar month after the close of each six-month period[, to wit]: for
calendar year taxpayers, on July 20 and January 20 or, for fiscal year
taxpayers, on or before the twentieth 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 a grace period of one
hundred eighty days shall apply to the payments if the applicable return is
timely filed pursuant to this paragraph or the payment qualifies under section
237-33; provided further 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.
(c) [If] Except as otherwise
provided in this chapter, if a taxpayer filing the taxpayer's return on a
quarterly or semiannual basis, as provided in this section, becomes delinquent
in either the filing of the taxpayer's return or the payment of the taxes due
thereon, or if the liability of a taxpayer, who possesses a permit to file the
taxpayer's return and to make payments on a semiannual basis exceeds $2,000 in
general excise taxes during the calendar year or exceeds [$4,000] $12,000
in general excise taxes during the calendar year if making payments on a
quarterly basis, or if the director determines that any such quarterly or
semiannual filing of return would unduly jeopardize the proper administration
of this chapter, including the assessment or collection of the general excise
tax, the director may, at any time, revoke a taxpayer's permit, in which case
the taxpayer will then be required to file the taxpayer's return and make
payments thereon as herein provided in subsection (a).
(d) The director may adopt [and promulgate]
rules [and regulations] pursuant to chapter 91 to carry out the
purposes of this section.
(e) Section 232-2 does not apply to a monthly return."
SECTION 3. Section 237-33, Hawaii Revised Statutes, is amended to read as follows:
"§237-33 Annual return, payment of
tax. On or before the twentieth day of the fourth month following the
close of the taxable year, each taxpayer shall make a return showing the value
of products, gross proceeds of sales or gross income, and compute the amount of
tax chargeable against the taxpayer in accordance with this chapter and deduct
the amount of monthly payments (as hereinbefore provided), and transmit with
the taxpayer's report a remittance in the form required by section 237-31
covering the residue of the tax chargeable against the taxpayer to the district
office of the department of taxation hereinafter designated[.];
provided that delinquent payments due during the tax year covered by the annual
return may be made with the annual return; provided that all applicable returns
under section 237-30 and the annual return are timely filed and the taxpayer
has submitted a letter of hardship explaining the late payment that the
director of taxation deems reasonable and warrants acceptance under this
section. The return shall be signed by the taxpayer, if made by an individual,
or by the president, vice-president, secretary, or treasurer of a corporation,
if made on behalf of a corporation. If made on behalf of a partnership, firm,
society, unincorporated association, group, hui, joint adventure, joint stock
company, corporation, trust estate, decedent's estate, trust, or other entity,
any individual delegated by the entity shall sign the same on behalf of the
taxpayer. If for any reason it is not practicable for the individual taxpayer
to sign the return, it may be done by any duly authorized agent. The
department, for good cause shown, may extend the time for making the return on
the application of any taxpayer and grant such reasonable additional time
within which to make the same as may, by it, be deemed advisable.
Section 232-2 applies to the annual return, but not to a monthly return."
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 years beginning after December 31, 2010.
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INTRODUCED BY: |
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Report Title:
General Excise Tax
Description:
Provides a grace period for general excise tax payments and broadens certain requirements for consolidated, year-end general excise tax payments.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
