Category Archives: Administration (HRS 231)

HB 1046; SB 1272 (Identical)

SUBJECT:  ADMINISTRATION, Require PTIN Use by Paid Preparers

BILL NUMBER:  HB 1046; SB 1272 (Identical)

INTRODUCED BY:  HB by SAIKI by request; SB by KOUCHI by request

EXECUTIVE SUMMARY:  Requires those who prepare tax returns for compensation to have a federally issued Preparer Tax Identification Number, or PTIN.  This may make sense for income tax returns, but much of Hawaii tax involves excise taxes such as the GET.  It takes a different skill set entirely to properly prepare an excise tax return, so the requirement of a PTIN makes less sense as to such returns.

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SB 2923; HB 2367

SUBJECT:  TAX ADMINISTRATION, Omnibus Bill

BILL NUMBER:  SB 2923; HB 2367

INTRODUCED BY: SB by KOUCHI by request; HB by SAIKI by request

EXECUTIVE SUMMARY: Allows the Department of Taxation to mandate the electronic filing of partnership and S-corporation returns if the taxpayer’s gross receipts exceed $250,000. Requires certain tax return preparers to file returns electronically. Amends the rules for electronic funds transfer to remove the authorization to require electronic funds transfer or electronic filing if the federal government required that person to file or pay electronically. Removes the timeliness requirement from the electronic funds transfer penalty. Removes the authority of the department to charge for certified copies of tax clearances. Amends the statute that mandates tax clearances for liquor license holders. Clarifies the interest rate for payments made to taxpayers out of the litigated claims fund.

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HB 1043, SD-1

SUBJECT:  ADMINISTRATION, Tax Appeals

BILL NUMBER:  HB 1043, SD-1

INTRODUCED BY:  Senate Committee on Judiciary

EXECUTIVE SUMMARY:  Replaces the tax boards of review with a single tax appeal review panel comprised of members who shall devote full time to their duties. Amends the grounds upon which an appeal to the administrative appeals and dispute resolution program may be made by disallowing appeals of proposed assessments.

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HB 1043, HD-1

SUBJECT:  ADMINISTRATION, Tax Appeals

BILL NUMBER:  HB 1043, HD-1

INTRODUCED BY:  House Committee On Finance

EXECUTIVE SUMMARY:  Replaces the tax boards of review with a single tax appeal review panel comprised of members who shall devote full time to their duties. Amends the grounds upon which an appeal to the administrative appeals and dispute resolution program may be made by disallowing appeals of proposed assessments.

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SB 397, SD-2

SUBJECT:  ADMINISTRATION, Requires Additional Tax Clearances for Contractors

BILL NUMBER:  SB 397, SD-2

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Requires contractors and subcontractors to submit tax clearances as a condition of obtaining building permits for private developments exceeding a certain value. Requires contractors and subcontractors to submit additional tax clearances before final inspection of private developments exceeding a certain value.  Contractors already need tax clearances to obtain and renew their licenses, and to bid or receive final payment on state or county government contracts.  It is questionable whether these additional clearances are justified given the massive delays in the permitting process that already exist.

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HB 287, HD-1

SUBJECT:  ADMINISTRATION, Restrict DOTAX Ability to Foreclose Tax Lien Property

BILL NUMBER:  HB 287, HD-1

INTRODUCED BY:  House Committee on Judiciary

EXECUTIVE SUMMARY:  Allows the Department of Taxation to utilize nonjudicial foreclosures on abandoned property on which there is a recorded tax lien.  Such property already may be foreclosed under existing law.  This measure may well constrain the Department’s ability to use nonjudicial foreclosure on other properties.

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