STAND. COM. REP. NO. 2655

Honolulu, Hawaii

RE: S.B. No. 2822

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2822 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRONIC FILING,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Department of Taxation to require certain taxpayers to file tax returns electronically if the Department has provided an electronic filing option.

This measure also authorizes the Department of Taxation to impose a penalty for failure to file electronically and to waive the penalty if the failure is for reasonable cause.

Your Committee received testimony in support of this measure from the Department of Taxation and Transform Hawaii Government.

Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that authorizing the Department of Taxation to require certain taxpayers to file tax returns electronically will help to increase the overall efficiency of tax administration in the State.

Your Committee has amended this measure by:

(1) Clarifying that the Department of Taxation's authority to require the electronic filing of tax returns applies only to certain specified categories of taxpayers, and that before requiring any electronic filing of tax returns, the Department shall provide no less than ninety days written notice to the general public of its intention to do so; and

(2) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

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. 2822, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2822, S.D. 1, and be placed on the calendar for Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair