Report Title:

Electronic Filing and Payment of Taxes; Accelerate Tax Payments

Description:

Requires all persons required to electronically file and pay federal taxes to electronically file and pay state taxes.  Accelerates the filing and payment due dates for general excise, transient accommodations, fuel, cigarette, and rental motor vehicle and tour vehicle surcharge taxes. (SD2)

THE SENATE	S.B. NO.	1461
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 231-9.9, Hawaii Revised Statutes, is amended to read as follows:

     "§231-9.9  [Payment] Filing and payment of taxes by electronic funds transfer.  (a)  The director of taxation is authorized to require every person whose tax liability for any one taxable year exceeds $100,000 and who files a tax return for any tax, including consolidated filers, to remit taxes by one of the means of electronic funds transfer approved by the department; provided that for withholding taxes under section 235-62, electronic funds transfers shall apply to annual tax liabilities that exceed $40,000.  Notwithstanding the tax liability threshold of $100,000 in this subsection, the director of taxation is authorized to require any person who is required to electronically file a federal return and electronically remit any federal taxes to the federal government, to electronically file a state return and electronically remit any state taxes under title 14 to the department.  The director is authorized to grant an exemption to the electronic filing and payment requirements for good cause.

     (b)  Any person who files a tax return for any tax and is not required by subsection (a) to remit taxes by means of electronic funds transfer may elect to remit taxes by one of the means of electronic funds transfer approved by the department with the approval of the director of taxation.

     (c)  If a person who is required under subsection (a) to file a return electronically and remit taxes by one of the means of electronic funds transfer approved by the department fails to file electronically and to remit the taxes using an approved method on or before the date prescribed therefor, unless it is shown that the failure is due to reasonable cause and not to neglect, there shall be added to the tax required to be so remitted a penalty of two per cent of the amount of the tax.  The penalty under this subsection is in addition to any penalty set forth in section 231-39.

     (d)  No later than twenty days prior to the convening of each regular session, the department shall submit a report to the legislature containing:

     (1)  The number of taxpayers who were assessed the two per cent penalty pursuant to subsection (c);

     (2)  The amounts of each assessment; and

     (3)  The total amount of assessments collected for the previous year."

     SECTION 2.  Section 237-30, Hawaii Revised Statutes, is amended to read as follows:

"§237-30  Monthly, quarterly, or semiannual return, computation of tax, payment.  (a)  The taxes levied hereunder shall be payable in monthly installments on or before the [last] twentieth day of the calendar month following the month in which they accrue.  The taxpayer shall, on or before the last day of the calendar month following the month in which the taxes accrue, make out and sign a return of the installment of tax for which the taxpayer is liable for the preceding month and transmit the same, together with a remittance, in the form required by section 237-31, for the amount of the tax, to the office of the department of taxation in the appropriate district hereinafter designated.

     (b)  Notwithstanding subsection (a), the director of taxation, for good cause, may permit a taxpayer to file the taxpayer's return required under this section and make payments thereon:

     (1)  On a quarterly basis during the calendar or fiscal year, the return and payment to be made on or before the [last] twentieth day of the calendar month after the close of each quarter, to wit:  for calendar year taxpayers, on or before April [30,] 20, July [31,] 20, October [31,] 20, and January [31] 20 or, for fiscal year taxpayers, on or before the [last] twentieth day of the fourth month, seventh month, and tenth month following the beginning of the fiscal year and on or before the [last] twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the taxes due thereon and the taxpayer's total tax liability for the calendar or fiscal year under this chapter will not exceed [$4,000;] $         ; or

     (2)  On a semiannual basis during the calendar or fiscal year, the return and payment to be made on or before the [last] twentieth day of the calendar month after the close of each six-month period, to wit: for calendar year taxpayers, on July [31] 20 and January [31] 20 or, for fiscal year taxpayers, on or before the [last] twentieth day of the seventh month following the beginning of the fiscal year and on or before the [last] twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the taxes due thereon and the taxpayer's total tax liability for the calendar or fiscal year under this chapter will not exceed [$2,000.] $        .

     The director, for good cause, may permit a taxpayer to make monthly payments based on the taxpayer's estimated quarterly or semiannual liability, provided the taxpayer files a reconciliation return at the end of each quarter or at the end of each six-month period during the calendar or fiscal year, as provided in this section.

     (c)  If a taxpayer filing the taxpayer's return on a quarterly or semiannual basis, as provided in this section, becomes delinquent in either the filing of the taxpayer's return or the payment of the taxes due thereon, or if the liability of a taxpayer, who possesses a permit to file the taxpayer's return and to make payments on a semiannual basis exceeds [$2,000] $         in general excise taxes during the calendar year or exceeds [$4,000] $         in general excise taxes during the calendar year if making payments on a quarterly basis, or if the director determines that any such quarterly or semiannual filing of return would unduly jeopardize the proper administration of this chapter, including the assessment or collection of the general excise tax, the director [may], at any time, may revoke a taxpayer's permit, in which case the taxpayer will then be required to file the taxpayer's return and make payments thereon as herein provided in subsection (a).

     (d)  The director may adopt [and promulgate] rules [and regulations] in accordance with chapter 91 to carry out the purposes of this section.

     (e)  Section 232-2 does not apply to a monthly return."

     SECTION 3.  Section 237D-6, Hawaii Revised Statutes, is amended by amending subsection (a) and (b) to read as follows:

     "(a)  On or before the [last] twentieth day of each calendar month, every operator taxable, or plan manager liable under this chapter during the preceding calendar month shall file a sworn return with the director in such form as the director shall prescribe together with a remittance for the amount of the tax in the form required by section 237D-6.5.  Sections 237-30 and 237-32 shall apply to returns and penalties made under this chapter to the same extent as if the sections were set forth specifically in this section.

     (b)  Notwithstanding subsection (a), the director of taxation, for good cause, may permit a taxpayer to file the taxpayer's return required under this section and make payments thereon:

     (1)  On a quarterly basis during the calendar or fiscal year, the return and payment to be made on or before the [last] twentieth day of the calendar month after the close of each quarter, to wit:  for calendar year taxpayers, on or before April [30,] 20, July [31,] 20, October [31,] 20, and January [31] 20 or, for fiscal year taxpayers, on or before the [last] twentieth day of the fourth month, seventh month, and tenth month following the beginning of the fiscal year and on or before the [last] twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the taxes due thereon and the taxpayer's total tax liability for the calendar or fiscal year under this chapter will not exceed $4,000; or

     (2)  On a semiannual basis during the calendar or fiscal year, the return and payment to be made by or before the [last] twentieth day of the calendar month after the close of each six-month period, to wit:  for calendar year taxpayers, on July [31] 20 and January [31] 20 or, for fiscal year taxpayers, on or before the [last] twentieth day of the seventh month following the beginning of the fiscal year and on or before the [last] twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the taxes due thereon and the taxpayer's total tax liability for the calendar or fiscal year under this chapter will not exceed $2,000.

     The director, for good cause, may permit a taxpayer to make monthly payments based on the taxpayer's estimated quarterly or semiannual liability; provided that the taxpayer files a reconciliation return at the end of each quarter or at the end of each six-month period during the calendar or fiscal year, as provided in this section."

     SECTION 4.  Section 243-10, Hawaii Revised Statutes, is amended to read as follows:

     "§243-10  Statements and payments.  Each distributor and each person subject to section 243-4(b), on or before the [last] twentieth day of each calendar month, shall file with the director of taxation, on forms prescribed, prepared, and furnished by the director, a statement, authenticated as provided in section 231-15, showing separately for each county and for the island of Lanai and the island of Molokai within which and whereon fuel is sold or used during each preceding month of the calendar year, the following:

     (1)  The total number of gallons of fuel refined, manufactured, or compounded by the distributor or person within the State and sold or used by the distributor or person, and if for ultimate use in another county or on either island, the name of that county or island;

     (2)  The total number of gallons of fuel acquired by the distributor or person during the month from persons not subject to the tax on the transaction or only subject to tax thereon at the rate of 1 cent per gallon, as the case may be, and sold or used by the distributor or person, and if for ultimate use in another county or on either island, the name of that county or island;

     (3)  The total number of gallons of fuel sold by the distributor or person to the United States or any department or agency thereof, or to any other person or entity, or used in any manner, the effect of which sale or use is to exempt the fuel from the tax imposed by this chapter;

     (4)  Additional information relative to the acquisition, purchase, manufacture, or importation into the State, and the sale, use, or other disposition, of diesel oil by the distributor or person during the month, as the department of taxation by rule shall prescribe.

     At the time of submitting the foregoing report to the department, each distributor and person shall pay the tax on each gallon of fuel (including diesel oil) sold or used by the distributor or person in each county and on the island of Lanai and the island of Molokai during the preceding month, as shown by the statement and required by this chapter; provided that the tax shall not apply to any fuel exempted and so long as the same is exempted from the imposition of the tax by the Constitution or laws of the United States; and the tax shall be paid only once upon the same fuel; provided further that a licensed distributor shall be entitled, in computing the tax the licensed distributor is required to pay, to deduct from the gallons of fuel reported for the month for each county or for the island of Lanai or the island of Molokai, as the case may be, one gallon for each ninety-nine gallons of like liquid fuel sold by retail dealers in that county or on that island during the month, as shown by certificates furnished by the retail dealers to the distributor and attached to the distributor's report.  All taxes payable for any month shall be delinquent after the expiration of the [last] twentieth day of the following month.

     Statements filed under this section concerning the number of gallons of fuel refined, manufactured, compounded, imported, sold or used by the distributor or person are public records. "

     SECTION 5.  Section 245-5, Hawaii Revised Statutes, is amended to read as follows:

     "§245-5  Returns.  Every wholesaler or dealer, on or before the [last] twentieth day of each month, shall file with the department a return showing the cigarettes and tobacco products sold, possessed, or used by the wholesaler or dealer during the preceding calendar month and of the taxes chargeable against the taxpayer in accordance with this chapter.  The form of the return shall be prescribed by the department and shall include:

     (1)  A separate statement of the number and wholesale price of cigarettes;

     (2)  The amount of stamps purchased and used;

     (3)  The wholesale price of tobacco products, sold, possessed, or used; and

     (4)  Any other information that the department may deem necessary, for the proper administration of this chapter."

     SECTION 6.  Section 245-28, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§245-28[]]  Time for payment of deferred-payment purchases; manner of payment.  Amounts owing for stamps purchased on the deferred-payment basis in any calendar month shall be due and payable on or before the [last] twentieth day of the following calendar month.  Payment shall be made by a remittance payable to the department."

     SECTION 7.  Section 245-31, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§245-31[]]  Monthly report on distributions of cigarettes and tobacco products, and purchases of stamps.  (a)  On or before the [last] twentieth day of each month, every licensee shall file on forms prescribed by the department:

     (1)  A report of the licensee's distributions of cigarettes and purchases of stamps during the preceding month; and

     (2)  Any other information that the department may require to carry out this part.

     (b)  On or before the [last] twentieth day of each month, every licensee shall file on forms prescribed by the department:

     (1)  A report of the licensee's distributions of tobacco products and the wholesale costs of tobacco products during the preceding month; and

     (2)  Any other information that the department may require to carry out this part."

     SECTION 8.  Section 251-4, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  On or before the [last] twentieth day of each calendar month, every person taxable under this chapter during the preceding calendar month shall file a sworn return with the director in such form as the director shall prescribe together with a remittance for the amount of the surcharge tax in the form required by section 251‑5.  Sections 237-30 and 237-32 shall apply to returns and penalties made under this chapter to the same extent as if the sections were set forth specifically in this section.

     (b)  Notwithstanding subsection (a), the director, for good cause, may permit a person to file the person's return required under this section and make payments thereon:

     (1)  On a quarterly basis during the calendar or fiscal year, the return and payment to be made on or before the [last] twentieth day of the calendar month after the close of each quarter, to wit:  for calendar year taxpayers, on or before April [30,] 20, July [31,] 20, October [31,] 20, and January [31] 20 or, for fiscal year taxpayers, on or before the [last] twentieth day of the fourth month, seventh month, and tenth month following the beginning of the fiscal year and on or before the [last] twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the surcharge taxes due thereon and that the person's total surcharge tax liability for the calendar or fiscal year under this chapter will not exceed $4,000; or

     (2)  On a semiannual basis during the calendar or fiscal year, the return and payment to be made by or before the [last] twentieth day of the calendar month after the close of each six-month period, to wit:  for calendar year taxpayers, on July [31] 20 and January [31] 20 or, for fiscal year taxpayers, on or before the [last] twentieth day of the seventh month following the beginning of the fiscal year and on or before the [last] twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the surcharge taxes due thereon and that the person's total surcharge tax liability for the calendar or fiscal year under this chapter will not exceed $2,000.

     The director, for good cause, may permit a person to make monthly payments based on the person's estimated quarterly or semiannual liability; provided that the person files a reconciliation return at the end of each quarter or at the end of each six-month period during the calendar or fiscal year, as provided in this section."

     SECTION 9.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act shall take effect on July 1, 2009, and shall apply to taxable years beginning after December 31, 2008.