STAND. COM. REP. NO.  658-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1848

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1848 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to require all monthly general excise tax returns to be filed electronically beginning January 1, 2015, and to authorize the Director of Taxation to assess administrative fees on returns filed manually.

The Chamber of Commerce Hawaii testified in support of this measure.  The Department of Taxation, Disability and Communication Access Board, and Tax Foundation of Hawaii provided comments.

Your Committee notes that vendors often charge a processing fee for transactions.  Your Committee further notes that discussion was raised as to how this charge may or should apply to taxpayers filing electronically.

     Your Committee has amended this measure by changing its effective date to July 1, 2030, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1848, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1848, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair