Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1192 entitled:

begs leave to report as follows:

The purpose of this bill is to remove a disincentive to voluntary taxpayer participation in the electronic funds transfer (EFT) program administered by the Department of Taxation (DOTAX) by repealing the two percent penalty provision for failing to remit taxes using an approved EFT method on or before the date the taxes are due.

DOTAX testified in support of this bill. The Tax Foundation of Hawaii commented on this bill.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1192 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.