Hawaii Tax News
Administering the tax laws for the State of Hawaii in a consistent, uniform, and fair manner

Volume 6, Number 2State of Hawaii ! Department of Taxation

Tax Season Statistics

M

any thanks to all of you who helped us morethan triple the number of Hawaii income tax
returns e-filed this filing season! As of May 17, we
received 78,812 Form N-11 income tax returns throughthe Joint Federal/State e-filing program which is now in
its second year. Only 23,003 returns were e-filed lastyear. In addition, as of May 17, we received 677 Form
N-13 resident short forms via the Internet through theState’s Internet portal at www.ehawaiigov.org/efile.
As of April 30, our website had 1,708,224 hits whichis 46% higher than last year! Taxpayers also are taking
advantage of the e-mail access to the Department as
2,047 Internet e-mails were sent to our Taxpayer
Services Branch, representing an increase of 46% overthe same period last year.
Despite the increased use of our technology-based
services, many people still prefer speaking to a “live”
person. As of April 30, the live operators that replaced
our automated forms by fax/mail service during the 2001
filing season received 19,285 requests for forms, and our
Taxpayer Services Branch telephone staff answered
55,593 telephone calls.

Job Creation andWorker Assistance Act
Not AdoptedE

ach legislative session, the Department
introduces a bill to bring Hawaii income tax law
into substantial conformity with federal tax law as ofDecember 31 of the previous year. This year’s
conformity bill, S.B. No. 2824, S.D. 2, H.D. 1, C.D. 1,
conforms to many, but not all, of the provisions of the
Economic Growth and Tax Relief Reconciliation Act of2001 (EGTRRA), but does not conform to the Job
Creation and Worker Assistance Act of 2002 (JCWAA),
which was signed by President Bush on March 9, 2002.
S.B. No. 2824, S.D. 2, H.D. 1, C.D. 1 does notconform to the provisions of the JCWAA because the
JCWAA did not amend the Internal Revenue Code as ofDecember 31, 2001. The JCWAA provisions, therefore,

SUMMER 2002

are not applicable for Hawaii income tax purposes forthe 2001 tax year. Among the JCWAA provisions not
adopted are the bonus depreciation and 5-year net
operating loss carryback.
If you erroneously incorporated into your Hawaii
return a federal provision that has not been adopted by
Hawaii (or if you find some other error), file an amended
return as soon as possible.
For more information, see Department of Taxation
Announcement No. 2002-5, The Federal Job Creation
And Worker Assistance Act of 2002 Does Not Apply To
Hawaii Taxes. The Announcement may be obtained
from our website at www.state.hi.us/tax, by calling ourrequest line at 587-7572 (toll-free at 1-800-222-7572),
or from any district tax office.

Booklet Suppression
ProjectA

re you among the increasing number of
taxpayers and tax practitioners using computer
software, PDF form files with fillable fields (available
on our website at www.state.hi.us/tax and on our tax
information CD), or on-line Internet filing(www.ehawaiigov.org/efile) to complete your periodic
and annual general excise, withholding, transient
accommodations, or rental motor vehicle and tour
vehicle surcharge tax returns? Do you just throw away
the booklet of tax forms that is sent to you every year?
See Booklet Suppression, Page 2

IN THIS ISSUE
Tax Season Statistics . . . . . . . . . . . . . . . . . 1
Job Creation and Worker Assistance
Act Not Adopted . . . . . . . . . . . . . . . . . . . . 1
Booklet Suppression Project . . . . . . . . . . . . 1
The Direct Line . . . . . . . . . . . . . . . . . . . . . . 2
Mark Your Calendars! . . . . . . . . . . . . . . . . . 2
Audits, Appeals, Refunds, Payments . . . . . 2
Legislative Highlights . . . . . . . . . . . . . . . . . 3
Recently Issued Tax Publications . . . . . . . . 6
Pending Tax Publications . . . . . . . . . . . . . . 6
Third Quarter State Tax Collections . . . . . . 7

Page 2

Hawaii Tax NewsThe Direct Line F
By Director Marie Y. Okamura

Implementation of the firstmajor component of our new
integrated
tax
information
management system is scheduled
for early November. This
component will replace our net
income tax processing systemand enhance the integrated
collection system that was
introduced last March.
Excitement is building as staff
are involved in building the new
system in partnership with our contractor, testing, data
conversion and cleansing, and training, training andmore training! The training ranges from use of the new
system to change management. It includes using new
tools (e.g., automated routing and work lists, etc.),
accessing legacy information, transition processes, etc.
We will be sharing more about how this will affectyou - our customers - in our fall issue.

Booklet Suppression(From Page1)

If so, YOU can help lower the cost of government!
Just visit any district tax office or call us at 587-4242(toll-free at 1-800-222-3229), and ask us to "suppress theprinting" of the appropriate booklet. Doing so will stop
unnecessary spending on paper, printing, and postage forunused forms booklets. Tax practitioners with anappropriate power of attorney may submit a single
written request covering multiple clients.
Cutting the cost of government is everyone’s
responsibility!

Summer 2002

including a presentation on the 2002 Legislative Session.
The 2002 Summer Workshop information and registration
flyer will be posted on our website at www.state.hi.us/tax
when it is finalized. You can also obtain the flyer by calling
our request line at 587-7572 (toll-free at 1-800-222-7572),
or from any district tax office.

Audits, Appeals,
Refunds, Payments

T

he Department recently issued Tax Information
Release (TIR) No. 2002-1, Audit of Net Income,General Excise, and Use Tax Returns; Appeal Rights;
Claims for Refund; and Payment to State under Protest.
TIR No. 2002-1 discusses the many ways that a
taxpayer or a particular return could be identified andselected for audit. For example, selection may be basedon information received from the Internal Revenue
Service, random selection, an examination of claims for
credit or refund, or the matching of return information
with information documents. Once selected, an auditor
is assigned to determine the taxpayer’s correct tax
liability.
After completing the audit, a notice of proposed
assessment is issued if the auditor finds that additional
taxes are due, after which the taxpayer has 30 days fromthe date of the notice of proposed assessment to discuss
the proposed assessment with the auditor. The proposed
assessment also can be discussed with the auditor’s
supervisor, section chief, or other supervisory staff by
request.
If the taxpayer and the Department cannot agree on
See Audits and Appeals, Page 3

The Hawaii Tax News is a publication of the State of
Hawaii, Department of Taxation.

Mark Your Calendars!

P

lanning for our 2002 Summer Workshop isunderway! The half-day Oahu workshop will beheld on July 26 at the Ala Moana Hotel. Neighbor island
workshops are tentatively scheduled as follows: Maui August 2, Kauai - August 19, Hilo - August 27, and Kona
- September 10. CPE credits for persons attending theworkshop will be available.
Several “hot” topics will be on tap for attendees,

Director:
Editor:Address:
Telephone:
Fax:
E-mail:Website:Forms By
Fax/Mail:
Consumer Dial:

Marie Y. Okamura
Lynne Kuroda
Princess Ruth Keelikolani Building
830 Punchbowl Street, Room 124
Honolulu, HI 96813-5094
808-587-1577
808-587-1584
Technical_Section@tax.state.hi.us
www.state.hi.us/tax
808-587-7572
Toll-Free 1-800-222-7572
808-587-1234, code 7700

Summer 2002

Hawaii Tax News

Audits and Appeals

Page 3Legislature may be obtained from the Senate and House
printshops, or from the following website address:
http://www.capitol.hawaii.gov(From Page 2)

Administrative Tax Measures

the assessment or if there is no response to the notice ofproposed assessment, a notice of assessment ofadditional taxes is mailed. Taxpayers may file an appeal
with either an administrative board of review or the tax
appeal court within 30 days of the date the notice ofassessment of additional taxes was mailed.
There is one five-member board of review appointed
by the Governor for each of the four taxation districts.
The first circuit court judge assigned to hear tax appeals
runs the tax appeal court. The assessed tax, penalties, andinterest do not have to be paid at the time an appeal ismade to the board of review. However, payment isrequired on a direct appeal to the tax appeal court except
in the case of an individual taxpayer who appeals anassessment of net income taxes where the total tax
liability does not exceed $50,000 in the aggregate, upon
proof that the taxpayer would be irreparably injured by
payment of the tax.
Further appeals can be made within 30 days of awritten decision. Generally, taxpayers appealing anadverse decision by a board of review to the tax appeal
court are required to pay the tax, penalties, and interest atthat time. For more information on the appeals process,see Tax Facts No. 2001-1, Hawaii Tax Appeals.
Also discussed are the limitation periods for filing aclaim for a refund or credit and the procedure for making
a payment of taxes under protest. Taxpayers can make apayment of taxes under protest and file suit to recover thetaxes paid within 30 days of the payment instead of filingan appeal under a tax chapter. This procedure also can beused if there is an unpaid tax and the taxpayer cannot
timely file an appeal. The payment must be accompanied
by a signed, written statement that provides the basis forthe protest.
While it does contain a great deal of useful information,
TIR No. 2002-1 is only intended to provide an overview ofthese processes and procedures, and taxpayers should
consult their tax advisors for legal advice.

ACT 153 (H.B. No. 2568, H.D. 1, S.D. 1, C.D. 1)
Relating to the Collection of Taxes
Assists the Department in the collection of taxes by: (1)expanding the Department’s current authority toascertain the fair market value (FMV) of sales between
affiliated companies or persons when the consideration
paid is not indicative of the FMV of sales and all taxes;(2) providing a continuous levy on the salary or wages ofa delinquent taxpayer; (3) indemnifying a person fromthe claims of third parties when the person honors a state
tax levy; and (4) expanding the authority for recovering
unpaid withholding taxes.
Effective upon approval. Applies to levies made on orafter July 1, 2002, and to withholding requirements for
payroll periods beginning on or after July 1, 2002.

Legislative HighlightsT

he following is a digest of bills passed by the2002 Legislature. It includes only thosemeasures which affect Hawaii’s tax laws and is provided
for your information. It is issued solely as a guide and is
not intended to be either authoritative or complete.
All bills are subject to the Governor’s approval. The
Governor has until June 24, 2002, to veto any bill.
Copies of the Senate and House bills passed by theGeneral Excise / Use / Public Service Company Tax
Measures
H.B. No. 1256, H.D. 2, S.D. 2, C.D. 1
Relating to Solid Waste Management
As it relates to taxation, provides an exemption from thegeneral excise tax for amounts received as a beveragecontainer deposit.
Effective July 1, 2002.
H.B. No. 1684, H.D. 1, S.D. 2
Relating to State and Local Taxation of Mobile
Telecommunications Services
Conforms Hawaii law to the federal Mobile
Telecommunications Sourcing Act of 2000 which
requires all wireless calls to be sourced by a home
service provider of mobile telecommunications services
to the subscriber’s residential or primary business street
address, whichever is the place of primary use. Under
the new sourcing rules, income received from acustomer whose place of primary use is in Hawaii will be
subject to Hawaii taxes: either the general excise tax forinterstate or foreign mobile phone calls or the public
service company tax for intrastate mobile phone calls.
Also exempts income from wholesales of mobile
telecommunication services (e.g., those sales that occur
between two home service providers) from both thegeneral excise tax and the public service company tax.
Applies to charges on or revenues from customer bills
issued after August 1, 2002.
ACT 122 (H.B. No. 1740, H.D. 1)
Relating to Enterprise Zones
Adds disease management services to the list of clientsthat are served by call centers in an enterprise zone.
Effective upon approval.
See Legislative Highlights, Page 4

Page 4

Hawaii Tax News

Summer 2002

value of products after July 1, 2002.

Legislative Highlights(From Page 3)

ACT 146 (H.B. No. 2454, S.D. 1, C.D. 1)
Relating to Enterprise Zones
Eliminates the use tax exemption for qualified
businesses operating within an enterprise zone (theexemption encouraged qualified businesses to makepurchases from out-of-state vendors rather than local
vendors).
Effective upon approval.
ACT 98 (H.B. No. 2569, H.D. 1, S.D. 1)
Relating to the Conformity of the State Tax Laws to
the United States Constitution
Allows taxpayers to use any legally imposed sales, grossreceipts, or use taxes paid to another state by the taxpayer
to first offset any use tax due on imported property,
services, or contracting, and to use any remaining
amount to offset the general excise tax due on thesubsequent sale of the imported property, services, orcontracting, subject to limitations.
Effective upon approval and applies to all open tax years
and for tax years that are pending appeal at the time of
approval.
ACT 110 (H.B. No. 2571, S.D. 1)
Relating to Taxation of Persons with Impaired Sight
or Hearing or Who are Totally Disabled that are
Engaged in Business
Extends the $2,000 exemption from the general excise
tax and the maximum 0.5% general excise tax rate to
general, limited, or limited liability partnerships all of
whose partners are “blind,” “deaf,” or “totally disabled”;
and also to limited liability companies all of whose
members are “blind,” “deaf,” or “totally disabled.”
Effective July 1, 2002, and applies to gross income andgross proceeds received after June 30, 2002.
H.B. No. 2720, H.D. 1, S.D. 1, C.D. 1
Relating to the Use Tax
Requires owners of motor vehicles imported into Hawaii
to provide with their application for registration proof thatany use tax due on the imported vehicle has been paid.
Effective January 1, 2003.
S.B. No. 2885, S.D. 2, H.D.1
Relating to Taxation
Provides that a wireless telecommunications services
provider may segregate taxable income according towhether the income is subject to the general excise tax,
the public service company tax, or a specific provision of
the general excise tax or public service company tax if
the segregation method does not conflict with rules
adopted by the Department.
Applies to gross income, gross proceeds of sales, andIncome Tax Measures
H.B. No. 1996, S.D. 1, C.D. 1
Relating to the Administration of Taxes
Lowers the adjusted gross income threshold forindividuals required to make estimated income tax
payments from $150,000 to $50,000. Also lowers therequired annual tax payment from 90% to 60% of the tax
shown on the return for the taxable year.
Effective January 1, 2003.
ACT 63 (H.B. No. 2365)
Relating to Taxation
Provides a refundable income tax credit of $1(multiplied by the number of qualified exemptions the
taxpayer is entitled to claim) to each resident individual
taxpayer pursuant to Article VII, Section 6, of the
Hawaii State Constitution.
Effective upon approval.
S.B. No. 2383, S.D. 2, H.D. 2, C.D. 1
Relating to Taxation to Stimulate the Economy
Provides a new 4% nonrefundable income tax credit for
qualified project construction costs for a qualified
nonresidential project incurred after December 31,
2002, and before January 1, 2007.
Also, expands the hotel construction and remodeling tax
credit to include property on which commercial orrecreational use is permitted to support or service a
hotel/hotel-condo or resort use, and offsite
improvements to service destination resort areas where ahotel/hotel-condo is situated.
Applies to taxable years beginning after December 31,
2002.
S.B. No. 2824, S.D. 2, H.D. 1, C.D. 1
Relating to Conformity of the Hawaii Income Tax
Law to the Internal Revenue CodeBrings Hawaii’s income tax law into conformity withmany but not all of the provisions of the federal
Economic Growth and Tax Relief Reconciliation Act of2001 (EGTRRA). For conformity purposes, the federal
effective dates in EGTRRA for amendments tooperative Internal Revenue Code sections are adopted.
(Note: This bill does not conform to the Job Creation andWorker Assistance Act (Public Law No. 107-147)
which was signed by President Bush on March 9, 2002.)
Conforms to the following provisions:• Education IRAs - The prior limit for contributions isincreased from $500 to $2,000; the definition ofqualified education expenses that may be paid
tax-free from an education IRA is expanded toinclude qualified elementary and secondary school
expenses.
See Legislative Highlights, Page 5

Summer 2002

Hawaii Tax News

Legislative Highlights(From Page 4)

•

•

•

•

•

Qualified Tuition Programs - The definition of“qualified tuition program” is expanded to include
certain prepaid tuition programs established andmaintained by one or more eligible educational
institutions (which may be private institutions);
distributions from qualified state tuition programs
are excluded from income to the extent that the
distribution is used to pay for qualified higher
education expenses.
Individual Retirement Accounts - The priorcontribution limit for an IRA is increased from$2,000 to $3,000 for 2002 through 2004; $4,000 for2005 through 2007; and $5,000 for 2008.
Qualified Retirement Plans (Pensions) - The priorcontribution limit of $35,000 for defined
contribution plans is increased to $40,000; the priorannual benefit limit of $140,000 for defined benefit
plans is increased to $160,000; individuals age 50 orover can make catch-up contributions; thecontribution limit on elective deferrals under a§401(k) plan is increased to $11,000 in 2002; thedollar limit on deferrals for §457 plans is increased to$11,000 in 2002, and is increased in $1,000 annual
increments thereafter until the limit reaches $15,000
in 2006.
Rollovers of Retirement Plan and IRA
Distributions - Distributions from qualified
retirement plans, §403(b) annuities, andgovernmental §457 plans may be rolled over to anyof such plans; distributions from an IRA may berolled over into a qualified plan, §403(b) annuity, or
governmental §457 plan; after-tax contributions may
be rolled over into another qualified plan or a
traditional IRA; surviving spouses may roll over
distributions to a qualified plan, §403(b) annuity, or
governmental §457 plan in which the spouseparticipates.
Purchase of Service Credit Under Governmental
Pension Plans - Participants in a state or local
governmental plan are not required to include a directtrustee-to-trustee transfer to a governmental defined
benefit plan from a §403(b) annuity or a §457 plan ingross income if the transferred amount is used topurchase permissive service credits under the plan orto repay contributions and earnings with respect to an
amount previously refunded under a forfeiture ofservice credit under the plan.

Does not conform to the following provisions:• Deduction for Qualified Higher Education Expenses•

Page 5

Dependent Care Credit

For a complete list of conforming and non-conforming
items, please refer to our Digest of the 2001 Federal Tax
Laws which may be obtained from our website under“Recent Legislation”.
Applies to taxable years beginning after December 31,
2001, except as otherwise provided.
S.B. No 2831, S.D. 1, H.D. 1, C.D. 1
Relating to an Extension of the Residential
Construction and Remodeling Income Tax Credit
Extends the residential construction and remodelingincome tax credit by one year to include costs incurred
before July 1, 2003.
Applies to taxable years beginning after December 31,
2001.
S.B. No. 2907, S.D. 2, H.D. 2, C.D. 1
Relating to Taxation
Provides a new nonrefundable tax credit for qualified
costs in the development of facilities for attractions andeducational purposes at Ko Olina Resort and Marina.
Applies to qualified costs incurred after December 31,
2002.
S.B. No. 2985, S.D. 2, H.D. 2, C.D. 1
Relating to Qualified Improvement Tax Credit
Provides a new 10% refundable income tax credit for
qualified improvement costs incurred by a federally
qualified health center during taxable years beginning
after December 31, 2001, and before January 1, 2011.
Applies to taxable years beginning after December 31,
2001.
Miscellaneous Tax Measures
ACT 94 (H.B. No. 2429, H.D. 1)
Relating to Tobacco
Authorizes the Department of Taxation and the Attorney
General to inspect any entity or vehicle to enforce theCigarette and Tobacco Tax Law. Also, repeals the June30, 2006 sunset date of the cigarette tax stamp act.
Effective upon approval.
H.B. No. 2741, H.D. 2, S.D. 2, C.D. 1
Relating to the Cigarette and Tobacco Tax
Increases the cigarette tax from 5 cents for each cigarette
to 6 cents after September 30, 2002; 6.5 cents after June30, 2003; and 7 cents after June 30, 2004.
Effective July 1, 2002.

Page 6

Hawaii Tax News

Recently Issued Tax
Publications

T

he following is a list of the publications issued
by the Department of Taxation from July 2001
through June 2002. Copies of these publications may beobtained from our website at www.state.hi.us/tax, bycalling our request line at 587-7572 (toll-free at
1-800-222-7572), or from any district tax office.
TIR No. 2001-3 - Discusses the application of thegeneral excise tax, fuel tax, transient accommodations
tax, and rental motor vehicle tax to income received frompurchases made with the General Services
Administration Smart Pay credit cards.
TIR No. 2001-4 - Discusses the definition of “cost”;
the payment of tax requirement; and safe harbor
guidelines pertaining to the capital goods excise tax
credit.
TIR No. 2002-1 - Summarizes statutory rights,
obligations, and procedures, relating to the audit of net
income, general excise, and use tax returns by the
Department which may result in the assessment ofadditional taxes; appeals from the assessment of taxes;
claims for refund or credit; and payment to the State
under protest.
TIR No. 2002-2 - Discusses the withholding of state
income taxes on the disposition of Hawaii real property
by a nonresident person.
Announcement No. 2001-17 - Provides informationon Act 293, SLH 2001, which provides a 4% refundable
income tax credit for the construction of new drought
mitigation water storage facilities, or the repair orreconstruction of existing water storage facilities.
Announcement No. 2001-18 - Provides informationon Act 309, SLH 2001, which provides a nonrefundable
income tax credit for contributions of in-kind services
for the repair and maintenance of Hawaii’s publicschools.
Announcement No. 2001-19 - Provides informationon Act 8, Third Special SLH 2001, which increases thefiling thresholds for taxpayers filing withholding,
general excise/use, transient accommodations, andrental motor vehicle and tour vehicle surcharge tax
returns.
Announcement No. 2001-20 - Provides informationon Act 10, Third Special SLH 2001, which provides a
4% nonrefundable residential construction andremodeling income tax credit, and amends the hotel
construction and remodeling income tax credit to change
it to a 10% nonrefundable credit for a limited time.
Announcement No. 2001-21 - Provides informationon Act 9, Third Special SLH 2001, which converts
certain transportation service providers who are subject
to the public service company tax to the general excise
tax.

Summer 2002

Announcement No. 2001-22 (Revised) Announces the adoption of the IRS optional standard
mileage rates for 2002.
Announcement No. 2002-1 - Provides a list of
candidates for political office who have registered withthe campaign spending commission.
Announcement No. 2002-2 - A listing of new andobsolete tax forms, instructions, and schedules; errors
found on Hawaii tax forms as of January 21, 2002.
Announcement No. 2002-3 - A listing of the Tax
Information Releases in effect and obsolete as ofJanuary 25, 2002, and a listing of Hawaii Administrative
Rules related to taxation.
Announcement No. 2002-4 - Provides information
regarding electronic filing as a means of electronic funds
transfer.
Announcement No. 2002-5 - Informs taxpayers thatthe federal Job Creation and Worker Assistance Act of2002 does not apply to Hawaii income taxes.
Hawaii Tax Information at a Glance Brochure Revised May 2002

Pending Tax
Publications

T

he following is a list of the Department’s tax
projects in progress, and the name andtelephone number of the staff member assigned to theproject.
Administration of Taxes• Application of penalties and interest and the waiverof penalties and interest - sections 231-3 and 231-39,
HRS.
• Clarify the application of the penalty for failure to
pay tax after timely filing a return (section
231-39(b)(3), HRS) where a corporation files anextension for a return and remits taxes with thereturn.
Income Tax Law• Clarify the application of the income tax to pension
amounts rolled over to an Individual Retirement
Account - section 235-7, HRS. (Peter Fritz,
587-1533)• Clarify whether a taxpayer who files an extension
may amend a return during the extension period tochange filing status from married filing joint tomarried filing separate.
General Excise Tax Law• Clarify the application of the general excise tax for
See Pending Publications, Page 7

Summer 2002

Hawaii Tax News

Pending Publications•(From Page 6)

•
•
•

•

•

reimbursements - section 237-20, HRS. (Grant
Tanimoto, 587-1569)
Clarify the application of the general excise tax
exemption for scientific contracts - section 237-26,
HRS. (Johnson Lau, 587-1562)
Clarify the application of the general excise tax tosales of property (e.g., goodwill, covenants not tocompete, etc.) upon the termination of a business.
Clarify when the Department may disclose tax return
information to persons contractually obligated to pay
general excise and use taxes assessed against another
under section 237-34(b), HRS.
Application of the general excise, use, and income
taxes on agricultural cooperatives organized underchapter 421, HRS, and farmer’s cooperatives
meeting the requirements of section 521, IRC.

Page 7

Pyramiding relief for Hawaii businesses under Act
71, SLH 1999.
General excise tax exemption for exported services
and contracting and the use taxation of imported
services under Act 70, SLH 1999, and Act 198, SLH
2000.

Conveyance Tax Law• Clarify the application of the conveyance tax,
including transactions involving Fannie Mae. (Grant
Tanimoto, 587-1569)
Miscellaneous• Clarify the use of bonds by cigarette stamping
licensees.

Third Quarter State Tax Collections
January - March(In Millions of Dollars)
Difference
Individual Income Tax
Corporate Income Tax
General Excise Tax
Transient Accommodations Tax
All Others
Total Tax Collections

FY 2002$ 266.4
18.7
395.8
35.9
153.5
$ 870.3

FY 2001$ 265.8
17.9
436.9
47.4
181.7
$ 949.8

Amount
$ 0.6
0.7
-41.1
-11.5
-28.2
$ -79.5

Percent
0.2%
4.0%
-9.4%
24.3%
15.5%
-8.4%

General Fund Revenues$ 761.9$ 825.2$ -63.3-7.7%(Note: Totals may not add up due to rounding.)

Total tax collections for the third quarter of fiscal year 2002 amounted to $870.3 million, or $79.5 million less than
the same period of last fiscal year. Corporate income and individual income tax collections for the third quarter grewslightly by $0.7 million and $0.6 million, respectively. Third quarter general excise tax collections plummeted $41.1
million from $436.9 million to $395.8 million, as did third quarter transient accommodations taxes (TAT) by $11.5
million from $47.4 million to $35.9 million. The effects of the September terrorist attacks are reflected in this $52.6
million decline of general excise and TAT collections. The weekend effect also may have caused this difference as
December 2000 payments were due on January 2, 2001. In addition to this loss, third quarter public service company
tax collections also showed a $17.3 million drop, primarily due to the transfer of revenue to the counties (Act 64, SLH
2001) and the imposition of the general excise tax instead of the public service company tax on transportation service
providers (Act 9, Third Special SLH 2001).
Tax collections deposited into the state general fund for the third quarter of fiscal year 2002 totaled $761.9 million, adecrease of $63.3 million from the $ 825.2 million deposited the previous fiscal year.

WEB INFORMATION AND FORMS
www.state.hi.us/tax
OAHU DISTRICT OFFICE
Princess Ruth Keelikolani Building
830 Punchbowl Street
Honolulu, HI 96813-5094
E-mail: Taxpayer_Services@tax.state.hi.us
Fax: 808-587-1488
Telephone:
For Tax Information:808-587-6515 (January - April 20)
808-587-4242
1-800-222-3229 (Toll-Free)808-587-1418 (TDD - For the hearing impaired)
1-800-887-8974 (TDD Toll-Free - For the hearing impaired)
Forms By Fax/Mail:
808-587-7572
1-800-222-7572 (Toll-Free)

MAUI DISTRICT OFFICE
State Office Building
54 S. High Street, #208
Wailuku, HI 96793-2198
Telephone: 808-984-8500 Fax: 808-984-8522
E-mail: Maui_Office@tax.state.hi.us

HAWAII DISTRICT OFFICE
State Office Building
75 Aupuni Street, #101
Hilo, HI 96720-4245
Telephone: 808-974-6321 Fax: 808-974-6300
E-mail: Hilo_Office@tax.state.hi.us

KAUAI DISTRICT OFFICE
State Office Building
3060 Eiwa Street, #105
Lihue, HI 96766-1889
Telephone: 808-274-3456 Fax: 808-274-3461
E-mail: Kauai_Office@tax.state.hi.us

Taxpayer Services BranchState of Hawaii
Department of Taxation
P.O. Box 259
Honolulu, HI 96809-0259

DISTRICT TAX OFFICES
Forms and Information may be obtained from any district tax office,Mondays through Fridays, except State holidays, from 7:45 A.M. to
4:30 P.M.