STAND. COM. REP. NO. 554

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 350

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 350 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the date of filing for monthly, quarterly, and semiannual general excise tax returns from the twentieth day of the month to the last day of the month.

 

     Your Committee received testimony in support of this measure from the Retail Merchants of Hawaii, Chamber of Commerce of Hawaii, Hawaii Business League, and two individuals.

 

     Your Committee received testimony in opposition to this measure from the Department of Taxation and one individual.

 

     Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committee finds that Act 196, Session Laws of Hawaii 2009, required the filing and payment of general excise taxes on the twentieth day of the month following the business activity to help address the State's revenue shortfall at that time.  This change resulted in difficulties for many taxpayers who found the twenty-day period insufficient to reconcile financial records in time to meet the new deadline.  Accordingly, your Committee finds that changing the filing and payment due date from the twentieth day of the month to the last day of the month would assist taxpayers in filing their general excise tax returns on a timely basis by providing additional days to gather the necessary financial information and documents.

 

     Your Committee is aware that the Department of Taxation has concerns about the filing and payment due dates set forth in this measure and will continue to work with the Department to establish a date that the Department deems reasonable and will be most efficient for taxpayers.

 

     Your Committee has amended this measure by:

 

(1)  Changing the effective date to July 1, 2050, to promote further discussion on the matter; and

 

(2)  Amending the starting applicable taxable year from July 1, 2013, to December 31, 2016.

 

     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 S.B. No. 350, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 350, 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