Bill Text: HI SCR112 | 2015 | Regular Session | Introduced

Hawaii Senate Concurrent Resolution 112 (Prior Session Legislation)

Introduced

Bill Title: Department of Taxation; Honolulu Rail Transit Project; Audit

Spectrum: Strong Partisan Bill (Democrat 13-1)

Status: (Introduced - Dead) 2015-03-31 - The committee on PSM deferred the measure. [SCR112 Detail]

Download: Hawaii-2015-SCR112-Introduced.html

THE SENATE	S.C.R. NO.	112
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

requesting the auditor to conduct a FINANCIAL audit of the department of taxation to address issues associated with the collection and payment of the county surcharge ON STATE TAX TO THE CIty and county of honolulu.

WHEREAS, the county surcharge on state tax is one-half of one percent and was imposed to help pay for the Honolulu rail transit project of the Honolulu Authority for Rapid Transportation (HART); and

WHEREAS, the county surcharge on state tax is the primary funding source for HART's rail transit project; and

WHEREAS, the Department of Taxation submits the applicable portion of the county surcharge on state tax to the City and County of Honolulu, which is then submitted to HART; and

WHEREAS, despite an increase in the State's general excise tax revenue collections, HART only received $68,178,842 in county surcharge payments in the first two quarters of fiscal year 2013, rather than the expected $100,231,516; and

WHEREAS, HART's rail transit project is reported to be in serious financial jeopardy, which threatens the likelihood of completion of the rail transit project by 2022; and

WHEREAS, it is critical that HART understands how the county surcharge on state tax is assessed, collected, and transferred to provide HART with the ability to more accurately estimate future revenue and receipts to base and monitor its financial plan; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-eighth Legislature of the State of Hawaii, Regular Session of 2015, the House of Representatives concurring, that the Auditor is requested to conduct a financial audit of the Department of Taxation to address issues associated with the collection and payment of the county surcharge on state tax to the City and County of Honolulu; and

BE IT FURTHER RESOLVED that the audit review each fiscal year since the implementation of the county surcharge on state tax; include the total revenue collected, any adjustments, and total tax liability per month; examine the timeliness of county surcharge on state tax collections and payments; and identify opportunities for change that would address any weaknesses in the current process; and

BE IT FURTHER RESOLVED that the Auditor report the Auditor's findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2016; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, Director of Taxation, Mayor of the City and County of Honolulu, and Board of Directors of the Honolulu Authority for Rapid Transportation.