STAND. COM. REP. NO.  679-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2341

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. 2341 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRONIC FILING AND PAYMENT OF TAXES,"

begs leave to report as follows:

The purpose of this measure is to lower the threshold tax liability amount for electronic funds transfers, by requiring taxpayers whose tax liability exceeds $25,000 in one year to transfer these amounts via electronic funds transfer.

The Department of Taxation submitted testimony in support of this measure.  The Tax Foundation of Hawaii submitted written comments.

     Your Committee finds that the electronic transfer method is the most efficient as well as safest way to pay taxes and that taxpayers who are required to transfer funds electronically will have security in knowing that their payments were sent and received.

     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. 2341 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

SYLVIA LUKE, Chair