STAND. COM. REP. NO. 2659

Honolulu, Hawaii

RE:    S.B. No. 2655

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2655, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE GENERAL EXCISE TAX COLLECTION DATE,"

begs leave to report as follows:

     The purpose and intent of this measure is to change the filing deadline for monthly, quarterly, semiannual, and annual general excise tax returns from the twentieth day of the respective applicable month to the last day of the month.   

     Your Committee received written comments in support of this measure from the Hawaii Business League.

     Your Committee received written comments on this measure from the Department of Taxation and the Tax Foundation of Hawaii.

     Your Committee finds that general excise tax returns were originally due on the last day of the month following the end of the tax period.  However, Act 196, Session Laws of Hawaii 2009, accelerated the filing and payment of general excise taxes to the twentieth day of the month.  Your Committee further finds that the current deadline is burdensome for small business owners and contractors.  Accordingly, your Committee finds that extending the general excise tax return date to the last day of the month will benefit taxpayers and the State. 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2655, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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JILL N. TOKUDA, Chair