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THE SENATE |
S.C.R. NO. |
115 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
S.D. 1 |
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STATE OF HAWAII |
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SENATE CONCURRENT
RESOLUTION
REQUESTING THE DEPARTMENT OF TAXATION TO CODIFY THE LANGUAGE OF THE REFERENCES TO INTERNAL REVENUE CODE PROVISIONS IN SECTION 235-110.7, HAWAII REVISED STATUTES.
WHEREAS, section 235-110.7, Hawaii Revised Statutes (HRS), the capital goods excise tax credit, was enacted in 1987 to provide relief for businesses by providing an income tax credit for the four per cent general excise paid for capital goods; and
WHEREAS, the capital goods excise tax credit was based on the Internal Revenue Code investment tax credit in effect at the time; and
WHEREAS, many of the provisions in section 235-110.7, HRS, refer to definitions and other provisions of the Internal Revenue Code, but do not include the actual language from the Internal Revenue Code; and
WHEREAS, portions of section 235-110.7, HRS, also "freeze" the Internal Revenue Code provisions as of December 31, 1984; and
WHEREAS, this is the only provision in Hawaii income tax law that refers to Internal Revenue Code provisions that are frozen in time; and
WHEREAS, over the course of more than twenty years some of the provisions of the Internal Revenue Code referred to in section 235-110.7, HRS, the capital goods excise tax credit, have been repealed; and
WHEREAS, with the repeal of these provisions, practitioners such as certified public accountants, attorneys, and others practicing in the tax area are not able to find these Internal Revenue Code provisions as they are no longer easily accessible or are not accessible at all; and
WHEREAS, the inability of tax practitioners to access the appropriate Internal Revenue Code provisions results in incorrect advice to clients or poorly filed claims for the capital goods excise tax credit; and
WHEREAS, in order to assist both the Department of Taxation and tax practitioners to correctly assist taxpayers, the provisions of the Internal Revenue Code should be codified in section 235-110.7, HRS; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-Fourth Legislature of the State of Hawaii, Regular Session of 2007, the House of Representatives concurring, that the Department of Taxation is requested to codify the language of the references to Internal Revenue Code provisions in section 235-110.7, Hawaii Revised Statutes, in one or more sections of the income tax law; and
BE IT FURTHER RESOLVED that the Department of Taxation is requested to submit proposed legislation directly to the Legislature for introduction in the Regular Session of 2008; and
BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Director of Taxation.
Tax Code; Department of Taxation to Codify Federal Code