Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1192 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the 2 per cent penalty provision for failing to remit taxes using an approved Electronic Funds Transfer method on or before the date the taxes are due.

Your Committee received testimony in favor of this measure from the Department of Taxation and received comments from the Tax Foundation of Hawaii.

Your Committee finds that participation in the Electronic Funds Transfer (EFT) program promotes taxpayer compliance with state tax laws. The taxpayer penalty removed by this measure will foster greater participation in the EFT program.

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. 1192 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.