Report Title:

General Excise Tax; Amended Returns

Description:

Permits a taxpayer to amend a return to correct an error in the computation of general excise tax liability; sunset date.

THE SENATE	S.B. NO.	685
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

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 beginning January 1, 2007, the general excise tax increased by one half of one per cent on Oahu to support a mass transit system.  However, many taxpayers are still unfamiliar or confused by the new law and may need more education of the rules for effective compliance.

     The purpose of this Act is to provide an amnesty period for taxpayers to amend their returns to correct errors they may have made in computing their general excise tax obligations under the new law.

     SECTION 2.  (a)  Any other law to the contrary notwithstanding, a taxpayer shall not be subject to penalty for any error in the computation of the taxpayer's general excise tax liability under chapter 237, Hawaii Revised Statutes, if the taxpayer:

     (1)  Exercises due diligence to determine whether the computation of the general excise tax liability is correct;

     (2)  Files an amended return within ninety days of discovering that the general excise tax liability was over-reported or under-reported; and

     (3)  Remits timely payment for any additional general excise tax due.

     (b)  The department of taxation shall:

     (1)  Develop and implement a plan to timely notify a taxpayer of any error in the computation of general excise tax liability; provided that the department of taxation's failure to notify a taxpayer of any error shall not relieve the taxpayer of general excise tax liability or the taxpayer's responsibility under subsection (a); and

     (2)  Adopt procedures necessary for the purpose of this section.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2006, and shall be repealed on December 31, 2007.

INTRODUCED BY:

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