Report Title:

General Excise Tax; Earlier Monthly Filing; One-Time Fiscal Year Windfall

 

Description:

Advances the date of filing of a general excise monthly tax return from the last day of the calendar month following the month in which the taxes accrue to the 20th day of that month to generate a one-time windfall in revenue due to earlier collection of taxes within the fiscal year.  (HB1735 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1735

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO GENERAL EXCISE TAX.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that Act 355, Session Laws of Hawaii 1997, authorized the governor to convert the State of Hawaii payroll payment basis from predicted payroll to after-the-fact payroll commencing with the June 30, 1998, pay day in fiscal year 1997-1998, which was delayed to July 1, 1998, in fiscal year 1998-1999.  That "payroll lag" measure delayed state expenditures to generate a one-time windfall savings of approximately $51,500,000.

     The legislature further finds that advancing the filing and payment of monthly general excise taxes due, from the last calendar day of the month following the month in which taxes accrue to the twentieth day of that month, will generate a one-time estimated revenue of $75,000,000 to $100,000,000 in a way analogous to the effect of the payroll lag measure, but in reverse fashion, by advancing receipt of revenues within one fiscal year.

     The purpose of this Act is to advance the filing and payment of monthly general excise taxes due to an earlier date in the following month to generate a one-time windfall revenue for the State.

     SECTION 2.  Section 237-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The taxes levied hereunder shall be payable in monthly installments on or before the [last] twentieth day of the calendar month following the month in which they accrue.  The taxpayer [shall], on or before the [last] twentieth day of the calendar month following the month in which the taxes accrue, shall make out and sign a return of the installment of tax for which the taxpayer is liable for the preceding month and transmit the same, together with a remittance, in the form required by section 237-31, for the amount of the tax, to the office of the department of taxation in the appropriate district hereinafter designated."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2009, and shall apply to taxes due on June 20, 2009.