STAND. COM. REP. NO.  347

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1300

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred H.B. No. 1300 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Require the Department of Taxation (DOTAX) to establish, by July 1, 2011, an e-filing system to allow taxpayers to file all tax returns and other documents required under Title 14, Hawaii Revised Statutes, relating to taxation, by electronic, telephonic, or optical means; and

     (2)  Change the filing and payment deadlines for the general excise tax from the 20th of the calendar month to the last day of the month.

     DOTAX, The Hawaii Business League, and The Chamber of Commerce of Hawaii supported this bill.  Tax Foundation of Hawaii submitted comments.

     In light of testimony submitted by DOTAX on this bill, your Committee has amended this measure by:

     (1)  Delaying the required implementation date for the e-filing system to no later than July 1, 2013;

     (2)  Moving various other tax payment, filing, and report deadlines from the 20th of the month to the last day of the month to conform to the changes to the GET filing and payment deadlines;

     (3)  Changing its effective date to July 1, 2112, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1300, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1300, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. MCKELVEY, Chair