Bill Text: HI HB1270 | 2011 | Regular Session | Amended
Bill Title: Tax Credits, Exclusions, and Exemptions; Evaluation
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Enrolled - Dead) 2011-04-18 - (H) Received notice of Senate conferees (Sen. Com. No. 644). [HB1270 Detail]
Download: Hawaii-2011-HB1270-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1270 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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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. The legislature finds that, each year approximately $1,000,000,000 is given away in tax dollars in the form of tax exemptions, deductions, and credits to certain segments of the community. While many, if not all are for good reasons and programs, these tax "giveaways" are perpetual and require little or no legislative oversight. This is an unfair system, considering core programs such as education, public safety, health care programs, including the medicare and medicaid programs, and others must face legislative scrutiny before receiving continued funding.
It is the intent of the legislature to review and analyze certain tax credits, exclusions, and exemptions and to consider whether any of these tax credits, exclusions, and exemptions should be allowed to continue, be amended, or be permitted to expire.
The purpose of this Act is to provide a review of certain tax credits, exclusions, and exemptions to facilitate the authorization or reauthorization of successful programs and to do so at a cost that can be accommodated by the State's annual budget.
SECTION 2. (a) Every person claiming a tax credit, exclusion, or exemption that is listed under section 3 shall complete and file with the director of taxation through the department of taxation's website, an annual statistical report on electronic forms prepared and prescribed by the department. The annual statistical report shall be filed before June 30 of each calendar year following the five calendar years in which the tax credit, exclusion, or exemption is claimed. The department may adjust the due date of the annual statistical report by rule adopted in accordance with chapter 91, Hawaii Revised Statutes.
(b) The annual statistical report shall include the following information for the time period or periods specified by the department of taxation:
(1) Amount of tax credit claimed;
(2) Number of jobs created based on the tax credit;
(3) Job quality standards provided by the taxpayer;
(4) Amount of tax credit recaptured, if any; and
(5) Conformance by the taxpayer with the purpose of the tax credit, exclusion, or exemption.
The department shall request information in each of these categories sufficient to measure the effectiveness of the tax credit, exclusion, or exemption. In preparing the report, the department shall ensure against duplicative reporting requirements.
(c) Any person that claims a tax credit, exclusion, or exemption that is listed under section 3 who fails to file the annual statistical report by the due date, or any extension thereof, in the year following the year in which the tax credit, exclusion, or exemption was claimed or fails to include the required data in the annual statistical report, shall be assessed a penalty of $1,000 per month for each month the annual statistical report is not filed not to exceed a total of $6,000 for every annual statistical report not filed. Penalties collected under this subsection shall be deposited into the general fund.
(d) The department of taxation shall use the statistical information collected under this section to:
(1) Prepare summary descriptive statistics by category. The information shall be reported at the aggregate level to prevent compromising the identities of persons claiming a tax credit, exclusion, or exemption that is listed under section 3 or other confidential information; and
(2) Study the effectiveness of each tax credit, exclusion, and exemption that is listed under section 3.
The department shall report the results of its study to the legislature by December 1 of each year.
(e) The department of taxation shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to implement this section.
SECTION 3. Certain tax credits, exclusions, and exemptions subject for review. (a) All of the following tax credits, exclusions, or exemptions shall be subject for review under section 2:
(1) Section 182-16, Hawaii Revised Statutes (sales of geothermal power);
(2) Section 209E-11, Hawaii Revised Statutes (enterprise zone construction and sales);
(3) Section 212-8, Hawaii Revised Statutes (foreign trade zone sales);
(4) Section 235-12.5, Hawaii Revised Statutes (renewable energy technologies; income tax credit);
(5) Section 235-17, Hawaii Revised Statutes (motion picture, digital media, and film production income tax credit);
(6) Section 235-110.3, Hawaii Revised Statutes (ethanol facility tax credit);
(7) Section 235-110.51, Hawaii Revised Statutes (technology infrastructure renovation tax credit);
(8) Section 235-110.6, Hawaii Revised Statutes (fuel tax credit for commercial fishers);
(9) Section 235-110.7, Hawaii Revised Statutes (capital goods excise tax credit);
(10) Section 235-110.93, Hawaii Revised Statutes (important agricultural land qualified agricultural cost tax credit);
(11) Subparagraph (C) of paragraph (3) of section 237-13, Hawaii Revised Statutes (federal cost-plus contractors' exemption for materials, plant, and equipment);
(12) Paragraph (14) of section 237-24, Hawaii Revised Statutes (general excise tax; amounts not taxable);
(13) Paragraph (1) of section 237-24.3, Hawaii Revised Statutes (certain amounts received for loading and unloading agricultural commodities shipped interisland);
(14) Paragraph (2) of section 237-24.3, Hawaii Revised Statutes (sales of liquor, tobacco products, and meat and fish products for out-of-state consumption on ships or airplanes);
(15) Paragraph (4) of section 237-24.3, Hawaii Revised Statutes (amounts received from loading or unloading ships, tugboat services, certain transport of pilots or other government officials);
(16) Paragraph (12) of section 237-24.3, Hawaii Revised Statutes (gross receipts from rental or leasing of aircraft or aircraft engines used for interstate transport);
(17) Paragraph (2) of section 237-24.7, Hawaii Revised Statutes (gross receipts from operating a county transportation system);
(18) Section 237-24.75, Hawaii Revised Statutes (general excise tax; additional exemptions);
(19) Section 237-24.9, Hawaii Revised Statutes (general excise tax; aircraft service and maintenance facility);
(20) Section 237-25, Hawaii Revised Statutes (general excise tax; exemptions of sales and gross proceeds of sales to federal government, and credit unions);
(21) Section 237-26, Hawaii Revised Statutes (general excise tax; exemption of certain scientific contracts with the United States);
(22) Section 237-27, Hawaii Revised Statutes (general excise tax; exemption of certain petroleum refiners);
(23) Section 237-27.6, Hawaii Revised Statutes (general excise tax; solid waste processing, disposal, and electric generating facility; certain amounts exempt);
(24) Section 237-28.1, Hawaii Revised Statutes (general excise tax; exemption of certain shipbuilding and ship repair business);
(25) Section 237-29.8, Hawaii Revised Statutes (general excise tax; call centers; exemption; engaging in business; definitions);
(26) Section 239-12, Hawaii Revised Statutes (public service company tax; call centers; exemption; engaging in business; definitions);
(27) Section 241-4.5, Hawaii Revised Statutes (banks and other financial corporations tax; capital goods excise tax credit);
(28) Section 241-4.6, Hawaii Revised Statutes (banks and other financial corporations tax; renewable energy technologies; income tax credit);
(29) Section 241-4.8, Hawaii Revised Statutes (banks and other financial corporations tax; high technology business investment tax credit); and
(30) Section 244D-4.3, Hawaii Revised Statutes (liquor tax; exemption for sales of liquor out of the State).
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Tax Credits, Exclusions, and Exemptions; Evaluation
Description:
Requires the department of taxation to evaluate certain tax credits, exclusions, and exemptions and report to the legislature. Effective 7/1/50. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
