Hawaii Tax News
Volume 3, Number 2State of Hawaii • Department of Taxation

Department Prepares
For Year 2000

T

he Department of Taxation began its initialYear 2000 (Y2K) efforts in 1996, and has beenworking steadily to ensure Y2K compliance.
Our department has two mainframe application systems:
the Comprehensive Net Income Tax (CNIT) system andtheGeneralExcise,Withholding,Transient
Accommodations, and Rental Motor Vehicle and Tour
Vehicle Surcharge Tax (GEW/TAT) system.
Modifications to both systems are expected to be ready for
full systems testing by June 1999. Testing should becompleted on the CNIT system in July and on the
GEW/TAT system in August. Both systems should be Y2K
compliant by September. Upgrades to commercial
hardware and software applications also are expected to becompleted by September.
Although our Y2K compliance program is going
well, a contingency plan has been developed to
specifically address a “worst case scenario” on January
1, 2000. Should access to the mainframe systems andlocal area network/wide area network be unavailable formore than a week, this plan would allow basic levels ofservices to be provided to taxpayers until normal levelsof services can be restored.
The Department has received hundreds of letters ofinquiry from other agencies, companies, and the generalpublic about our Y2K-readiness. We want to assure
everyone that the Department recognizes the importanceof the Y2K situation, and that we are making every effort
to ensure that our systems will be compliant. Every Day is Problem
Solving Day

T

he Department of Taxation and the Internal
Revenue Service held their first joint problem
solving day for 1999 on April 12 and 13 on
the island of Molokai.
The Department assisted approximately 20 taxpayerswith problems ranging from tax information to non-filed
returns. The Molokai taxpayers were very receptive to
the IRS and State representatives and many asked foranother problem solving day next year.

SUMMER 1999

Taxpayers who are experiencing problems with their
State taxes are reminded that they do not have to wait for
a "Problem Solving Day" in order to receive assistance.
With the establishment of the Department’s Taxpayer
Advocacy Program, every day is problem solving day.
What is the Taxpayer Advocacy Program?
The Taxpayer Advocacy Program is administered by
the Taxpayer Advocacy Office of the Department of
Taxation. This office was established to provide thetaxpayers of Hawaii with a one-stop service for taxpayer
concerns that cannot be resolved through normal
channels. Assistance is provided on a case-by-case basis
focusing on your needs.
When Should You Use the Taxpayer Advocacy
Program?
The Department of Taxation is committed toadministering the tax and revenue laws of the State of
Hawaii in a consistent, uniform and fair manner. We
strive to perform in a manner responsive and sensitive tothe public’s needs while respecting the concerns andrights of each taxpayer. In most instances, tax problems
are resolved promptly through regular contacts.
However, if you still have difficulty in resolving yourproblem after several attempts, or if you feel your rights
as a taxpayer have been abridged, this office may be able
to help you.
Where is the Taxpayer Advocacy Office Located?
We are located in the Department of Taxation at 830
Punchbowl Street, Rm. 221 (Keelikolani Bldg.),
Honolulu, Hawaii. Our telephone number is (808)587-1791; and our fax number is (808) 587-1560.
Some Situations Not Meeting the Criteria For This
Office:• Not trying to use administrative or formal appeal
procedures;
See Problem Solving Day, Page 2

IN THIS ISSUE
Department Prepares For Year 2000 . . . . . 1
Every Day is Problem Solving Day . . . . . . . 1
The Direct Line. . . . . . . . . . . . . . . . . . . . . . . 2
New Field Audit Branch Chief . . . . . . . . . . . 3
Workshop on New Tax Legislation . . . . . . . 3
Missing a State Tax Refund Check? . . . . . . 3
Legislative Highlights . . . . . . . . . . . . . . . . . . 3
Recently Issued Tax Publications . . . . . . . . 7
Pending Tax Publications. . . . . . . . . . . . . . . 7

Page 2

Hawaii Tax NewsThe Direct Line )Summer 1999

Problem Solving Day

By Director Ray K. Kamikawa(From Page 1)

This is the time when we assess
the good and bad that emerged
from the legislative session. Many
good tax policy measures passed,
e.g., exported services exemption,
pyramiding relief, and hi-tech tax
incentives. Bills designed to ease
the administration of taxes made it
through, such as the calculation of
nonresident
taxes,
privatecollection agency procedures,conformity to the federal long-term care itemized
deduction, and the conveyance tax exemption formergers and consolidations. Unfortunately, theGovernor’s desire to see further relief from income andcorporate taxes did not find favor with the Legislature.
The Legislature this year put together a good website(located at http://www.capitol.hawaii.gov/) where you
can find the actual text of any measure considered or
passed by the Legislature.
Our annual income tax conformity bill tracked theprovisions of last year’s federal legislation which were
mostly technical amendments to existing income tax
provisions. The federal effective dates to theseamendments were also adopted. Besides these technicalamendments, we confirmed in our conformity bill thatfederal AGI is to be used in calculations for the Roth IRA
and Educational IRA. Two procedural items--theinnocent spouse relief and the suspension of the statuteof limitations for disability--were also adopted for
Hawaii income tax purposes.
We did not propose conformity to the new
confidentiality privilege for non-attorneys. Unlike thefederal laws, this would have involved amendments tostate laws over which we do not have jurisdiction, andwe did not want to jeopardize our annual conformity billwith a potential dispute between agencies. We polled
other states and found that no state has recommended
adoption of this privilege for various reasons--no realinterest by non-attorneys, opposition by local bar
associations, and agency jurisdiction issues. There isalso the criticism that the new federal privilege has notbeen effective as applied to non-attorneys. Nevertheless,
if local practitioners show enough interest, perhaps we
can work together in devising legislation that would
conform to the federal privilege and address some ofthese local concerns. Such was the case with the local
bar association in working on S.B. No. 1421 (in theattached summary) that provided for the allowance of
probation as an option for sentencing for criminal tax
offenses. • Appeal of an audit assessment;• Cases on a first inquiry basis;• Requests for technical advice or disclosure of tax
information; or• Requests for certified copies of tax returns and tax
return information.
How to Contact Us
If you need to call or write to us, please have thefollowing information available:• Your name, social security number, employer/Federal
identification number.
• Your address and ZIP code.
• Your daytime telephone number and the best hours tocall you.
• The date, the office involved, and the nature of the
problem.
• Your previous attempts to resolve the problem, andthe offices and person(s) contacted.
• The tax period and type of document involved. (e.g.,
tax return, assessment, etc.)
You can reach this office by telephoning (808)587-1791 to explain your situation. If we are unavailable
at the time you call, you will automatically be connected
to voice mail. Please leave a brief message with the date,time, your name, phone number, and the best time toreturn your call during the day.
If you decide to write, please send all correspondence
to the Taxpayer Advocacy Office, Department of
Taxation, P. O. Box 259, Honolulu, HI, 96809-0259, or
fax it to us at (808) 587-1560. Don’t forget to date andsign the letter. 

The Hawaii Tax News is a publication of the State of
Hawaii, Department of Taxation.
Director:
Editors:
Address:
Telephone:
Fax:
Website:Forms by Fax:
Consumer Dial:

Ray K. Kamikawa
Lynne Kuroda & Cathleen Tokishi
Princess Ruth Keelikolani Building
830 Punchbowl Street, Room 220
Honolulu, HI 96813-5094
808-587-1577
808-587-1488
http://www.state.hi.us/tax/tax.html
On Oahu: 587-7572
All Others: 808-678-0522 from yourfax machine808-587-1234 (message 7700)

Summer 1999

Hawaii Tax NewsNew Field Audit
Branch ChiefOn March 1, 1999, Wayne Griffin was
promoted to the position of Field Audit
Branch Chief, Oahu District Office. He has
approximately 25 years of accounting experience, which
includes 12 years as a controller, 7 years as president ofa management consulting firm, and 6 years as a financial
and tax auditor. Wayne obtained a graduate degree from
Colorado State University where he majored inaccounting with an emphasis in taxation. 

Workshop on New Tax
Legislation

Atax workshop on State tax legislation
enacted during the 1999 legislative session
will be held on July 21, 1999, at the State
Capitol Auditorium, from 8:30 a.m. to 11:30 a.m. CPE
credit for CPAs attending the workshop will be available.
A fee will be charged. To have a registration form sent
to you, call your nearest district tax office, or call the
Department’s Forms Request Line on Oahu at 587-7572,
or toll-free from the neighbor islands at 1-800-222-7572,
and leave a message on the Forms by Mail voice mailsystem. 

Missing a State Tax
Refund Check?

A

replacement check can be furnished if theoriginal check was never received, or the
check was received but was either lost,
stolen, or destroyed. For replacement of an income tax
refund check, complete Form L-80, Tracer Request
Form. To replace a refund check for general excise/use,
withholding, transient accommodations, rental motor
vehicle and tour vehicle tax, use Form G-80, Tracer
Request Form.
The tracer request form should be mailed to the
district tax office with which the tax return was filed.
Upon receipt, a stop payment will be issued on theoriginal refund check, if applicable.
If the check has been cashed, a copy of the check anda letter asking you to verify the endorsement will be sent
to you. There are procedures to follow up on forgery
claims.
If the check has not been cashed, a replacement check

Page 3will be sent to you. If the original check is received orfound after submitting the tracer request form, DO NOTCASH THE CHECK. This check must be returned to the
district tax office to which you submitted the tracer
request form. This entire process takes about 4 to 6
weeks. 

Legislative HighlightsT

he following is a draft preliminary digest ofbills passed by the 1999 Legislature. It
includes only those measures which affectHawaii’s tax laws and is provided for your information.
It is issued solely as a guide and is not intended to beeither authoritative or complete.
All bills are subject to the Governor’s approval. The
Governor has until June 25, 1999, to veto any bill.
Copies of the Senate and House bills passed by theLegislature may be obtained from the Senate and House
printshops, or from the following website address:
http://www.capitol.hawaii.gov/
S.B. NO. 44, SD1, HD2
RELATING TO TAXATION.
• Exempts exported services from the GET and use tax(included bundled contracting or services).
• Imposes the use tax on imported services.
Effective: Upon approval; GET exemption applies togross receipts received on or after January 1, 2000; use
tax applies to taxes accruing on or after January 1, 2000.
S.B. NO. 638, SD1, HD2
RELATING TO TAXATION.
• Expands the GET 1/2% rate to apply in the context of
mixed goods and services transactions, excluding"overhead" purchases (consumption by business).
• Phases in over six years by lowering rate by 0.5% eachyear. Allows department to effectuate rate change by
allocation, deduction, or other method.
• Grandfathers existing 1/2% rate transactions.
• Allows the reduced tax rate for sales of services tolicensed contractors and persons furnishing transient
accommodations.
• Clarifies that "service business or calling" includes
professional services.
• Provides corresponding use tax treatment.
Effective: Upon approval; GET provisions apply to grossreceipts received on or after January 1, 2000; use tax
provision applies to taxes accruing on or after January 1,
2000.
S.B. NO. 646, SD2, HD3, CD1
RELATING TO GOVERNMENT.
• Amends HRS §92-21 to require state agencies to
See Legislative Highlights, Page 4

Page 4

Hawaii Tax News

Legislative Highlights(From Page 3)

charge not less than 5¢ per page for copies ofgovernment documents, plus other related costs.
• As it relates to tax, provides for individual
development accounts (IDAs) and requires the
Department of Taxation to submit language to theLegislature establishing a tax credit for IDAs no laterthat the convening of the 2000 Regular Session.
• Creates an exemption for contributions to an IDA(including interest earned) and a "tax credit" of anunspecified type equal to 50% of a contribution to an
IDA.
Effective: Copying fees: July 1, 1999; IDA tax credit andexemption: upon approval.
S.B. NO. 788, SD2, HD2, CD1
RELATING TO TAXATION.
• Provides that the excise tax on cigarettes shall be
imposed and collected through the use of stamps
purchased by licensees, and affixed to cigarette
packages.
• Includes provisions for civil and criminal penalties,
and for forfeitures of cigarettes, to be enforced by thepolice departments, liquor commissions, the attorney
general, and prosecuting attorneys.
• Restores military sales exemption (See Act 10, SLH
1999 - H.B. No. 1207).
• Requires the Director of Taxation to submit findings
and recommendations to the Legislature for the 2005
Regular Session on effectiveness of Act.
• Transfers funds to county liquor commissions.
• Appropriates $35,000 for the Department of Taxation
start-up costs.
Effective: Taxpayers can apply to the Department for
stamps: December 15, 1999; taxpayers must affix
stamps: January 1, 2000; packs without stamps cannot
be sold: April 1, 2000; packs without stamps cannot be
placed/stored in vending machines: April 1, 2000.
The Act is repealed on June 30, 2005; HRS §§245-1,
245-3, 245-5, 245-6, 245-8, 245-15, and 281-17 are
re-enacted to read as they did before the approval of thisAct.
S.B. NO. 1016, SD1, HD1
RELATING TO ADMINISTRATIVE RULES.
• Establishes a maximum fee of 10¢ per page for
proposed and final administrative rules by a stateagency (other than the Lieutenant Governor).
• Allows separate charges for searching, identifying,and segregating rules to be copied.
• Requires posting of full text of proposed rules on the
Lieutenant Governor’s website effective January 1,
2000.
Effective: Upon approval.

Summer 1999

S.B. NO. 1144, SD1, HD2, CD1
RELATING TO FINANCIAL INSTITUTIONS.
Dedicates $2,500,000 from franchise tax revenues to thecompliance resolution fund by June 30 of each fiscal
year.
Effective: Upon approval.
S.B. NO. 1177, SD1, HD1
RELATING TO THE GENERAL EXCISE TAX.
• Reverses a Departmental rule adopted in 1993 which
subjects sales of containers and bulk condiments toeating and drinking retailers to the 1/2% GET rate, but
subjects sales of: (1) prepackaged condiments and (2)containers to an eating or drinking retailer to the 4%
GET rate.
• Cures disparate treatment by allowing 1/2% GET rate
for sales of prepackaged condiments to eating anddrinking retailers.
• Makes a technical correction to clarify that 1/2%
intermediary rate is applicable to professional services.
Effective: Upon approval; applies to gross receipts
received after June 30, 1999.
S.B. NO. 1178, SD2, HD2
RELATING TO THE GENERAL EXCISETAXATION OF RELATED ENTITIES.
• Tightens up HRS §237-23.5 by amending thedefinition of "related entities" to specify that therequirements of IRC §§1504 and 1563 apply. Guards
against corporations who try to claim related party
status by using valuation methods (which include
control premiums and minority discounts).
• Makes the same changes to HRS §237-24.7, a similar
provision for related entities engaged intelecommunication services.
Effective: July 1, 1999; applies to gross receipts received
after June 30, 1999.
S.B. NO. 1180, SD1, HD1
RELATING TO THE INCOME TAXATION OF
NONRESIDENTS.
Repeals HRS §235-4.3 (Act 281, SLH 1997) because ofoverwhelming compliance burdens for taxpayers anddisincentive for economic activity in Hawaii. Amends
HRS §235-5 to apply the ratio of Hawaii source income
over total income to a nonresident taxpayer’s personal
exemption and standard deduction. The change intreatment also applies to part-year residents who werealso affected by Act 281, SLH 1997.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1998.
S.B. NO. 1229, SD1, HD3, CD1
RELATING TO HOUSING.
Extends for two years the allocation of 12.5% ofconveyance tax revenues that are paid into the rental
housing trust fund. Appropriates $600,000 from the
See Legislative Highlights, Page 5

Summer 1999

Hawaii Tax News

Legislative Highlights(From Page 4)

general fund for homeless assistance in fiscal years
1999-2000 and 2000-2001.
Effective: June 29, 1999.
S.B. NO. 1325, SD1, HD2
RELATING TO TAXATION.
• Establishes a qualified improvement tax credit for
both a "qualified resort facility" and a "qualified
general facility." Credit amounts for both types offacilities are an unspecified percentage of capitalized
costs of construction and equipment of a permanent
nature. Credit may be carried forward for 10 years andmay be applied against GET, income, public service
company, or transient accommodations taxes.
• Provides that any impact fees that qualify for the tax
credit will be collected over a seven-year period,
interest-free, commencing when the project iscompleted. "Impact fees" are defined as those fees
imposed upon a project charged to the developer by
the state or a county to fund all or a portion of the
public facility capital improvement costs required by
the development, or to recoup the cost of existing
public facility capital improvements made in
anticipation of the needs of the development.
Effective: Upon approval; applies to taxable years 1999
through 2005.
S.B. NO. 1421, SD1, HD2
RELATING TO TAXATION.
Allows probation as an option for sentencing for tax
offenses.
Effective: Upon approval.
S.B. NO. 1583, SD2, HD2, CD1
RELATING TO TECHNOLOGY.
• Prohibits the imposition of discriminatory taxes on
Internet commerce (defines electronic commerce,Internet, and Internet access).
Effective: Upon approval; applies to taxable years
beginning after December 31, 1999, and before January
1, 2006.
• Income exemption for stock options received by
employees from a high technology business.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1999.
• Income exclusion for royalties and other income
derived from patents and copyrights owned by anindividual or a qualified hi-tech business anddeveloped and arising out of a hi-tech business.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1999.
• Creates an income tax credit for an investment in a

Page 5high technology business equal to 10% of theinvestment, up to a maximum of $500,000. Credit may
be carried forward until exhausted. Financial
institutions taxed under HRS chapter 241 andinsurance companies taxed under HRS chapter 431:7
may also claim the credit.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1998, and before January
1, 2006, for investments made after the approval date of
the bill.
• Makes operative for Hawaii tax purposes the federal
income tax credit for increasing research activities(IRC §§41 and 280C) with some modifications.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1999, and before January
1, 2006.
H.B. NO. 170, HD2, SD1, CD1
RELATING TO LONG-TERM CARE TAX
BENEFITS.
Conforms Hawaii income tax law to the federal itemized
deduction for long-term care premiums and expenses(IRC §213).
Effective: Upon approval; applies to taxable years
beginning after December 31, 1998.
H.B. NO. 307, HD2, SD1, CD1
RELATING TO HIGHER EDUCATION.
Creates a College Savings Program in conformance withthe requirements of IRC §529. Director of Finance orother designee files report with the Department of
Taxation regarding information on accounts andbeneficiaries.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1999.
H.B. NO. 765, HD1, SD2, CD1
RELATING TO MOTOR VEHICLE RENTAL
INDUSTRY.
• Increases rental motor vehicle surcharge tax from $2
to $3; exempts rentals of a vehicle to replace anothervehicle being repaired when the taxpayer retains therepair order for the vehicle for verification purposes.
• Allows U-drive operators to unbundle their airport
concession rents and service permit fees.
• Designates $11,000,000 from state highway fundmoneys to be deposited into the state general fund forfiscal years 1999-2000 and 2000-2001.
Effective: Upon approval; tax increase is effective for theperiod beginning September 1, 1999, to August 31, 2007.
H.B. NO. 854, SD1, CD1
RELATING TO EDUCATION.
Amends HRS §237-31 to change the amount of general
excise tax revenues to be deposited into the state
educational facilities improvement special fund fromSee Legislative Highlights, Page 6

Page 6

Hawaii Tax News

Legislative Highlights(From Page 5)$90,000,000 to $45,000,000.
Effective: Upon approval.
ACT 24 - H.B. NO. 1026, HD1
RELATING TO INSURANCE PREMIUM TAXES.
Expands qualification for low-income housing credit toinclude insurance companies; the credit is now available
to income taxpayers and financial institutions.
Effective: Upon approval; applies to taxable years
beginning after December 31, 1998.
H.B. NO. 1197, HD2, SD1
RELATING TO CONFORMITY OF THE
HAWAII INCOME TAX LAW TO THE
INTERNAL REVENUE CODE.
Includes provisions from the IRS Restructuring andReform Act of 1998; Surface Transportation Revenue Actof 1998; and Tax and Trade Relief Extension Act of 1998.
• Adopts the technical amendments relating to the$250,000 gain exclusion ($500,000 if married filing
jointly) on the sale of a principal residence owned orused for less than two years and the separate
computation of the gain exclusion for married
individuals filing jointly who do not qualify for the$500,000 exclusion. IRC §121.
• Adopts the accelerated phase-in of the schedule fordeduction of health care insurance expenses paid by
the self-employed (100% deduction is allowed in2003). IRC §162.
• Adopts the technical amendments relating to the Rothindividual retirement account (Roth IRA) for
qualified distributions, holding periods, erroneouscontributions, roll-overs, and the election to report the
total 1998 roll-over into a Roth IRA in 1998 insteadof equally over a four-year period. IRC §408A. For
purposes of determining the aggregate allowable
contribution to a Roth IRA or qualified rollover
contribution to a Roth IRA from an individual
retirement plan other than a Roth IRA, "adjusted grossincome" as used in IRC §408A means federal adjusted
gross income. HRS §235-2.4(g).
• Adopts the technical amendments relating to theeducation individual retirement account (IRA) for
distributions, holding periods, account requirements,
and roll-overs. IRC §530. For purposes of determining
the maximum annual contribution amount allowable
for an education IRA, "modified adjusted grossincome" means federal modified adjusted grossincome. HRS §235-2.4(n).
• Adopts relief from joint and several liability on a joint
return by: (1) relaxing the requirements for obtaining"innocent spouse" relief (but requiring the taxpayer tomake the election in writing in order to obtain relief);

Summer 1999

(2) allowing an individual who has filed a joint return,but who is no longer married to, legally separated
from, or no longer lives with the spouse with whom
the return was filed, to elect separate liability for any
deficiency with respect to the joint return; and (3)authorizing the department to grant equitable relief
from liability for unpaid taxes or deficiency in cases
where the options in (1) and (2) do not apply. IRC§6015. HRS §235-93.5, relating to innocent spouserelieved of liability in certain cases, is repealed
because of the adoption of IRC §6015.
• Adopts IRC §6511, which suspends the statute oflimitation period when a taxpayer is unable to manage
financial affairs due to disability, with due regard to
HRS §235-111, relating to the limitation period forassessment, levy, collection, or credit.
• Does not conform to the 1998 federal amendment
repealing the "more than 18 months" holding periodrequirement for long-term capital gain treatment.
Hawaii did not adopt the "more than 18 months"
holding period requirement from the Taxpayer Relief
Act of 1997, so no repeal was necessary. IRC §1(h)(5).
Effective: Upon approval; applies to taxable years
beginning after December 31, 1998.
H.B. NO. 1198, HD1, SD1, CD1
RELATING TO THE INTEGRATED TAXINFORMATION MANAGEMENT SYSTEMSACQUISITION BY THE DEPARTMENT OFTAXATION.
• Creates the Integrated Tax Information Management
Systems Special Fund to pay for the Integrated Tax
Information Management System. Special fundsunsets on July 1, 2004.
• Appropriates $17,750,828 for FY 1999-2000 and$7,480,428 for FY 2000-2001.
Effective: July 1, 1999.
H.B. NO. 1203, HD1, SD1
RELATING TO THE COLLECTION OF TAXES.
Allows collection agencies under a contract with the
Department to collect their fees directly from taxpayers.
Effective: Upon approval.
ACT 10 - H.B. NO. 1207
RELATING TO THE CIGARETTE TAX.
Amends HRS §245-3 to restore the exemption fromcigarette and tobacco taxes for sales to the military.
Effective: June 30, 1993.
H.B. NO. 1649, HD2, SD1, CD1
RELATING TO THE CONVEYANCE TAX.
Exempts from the conveyance tax, transfers of real property
or any interest therein, in connection with a merger orconsolidation, or in connection with the dissolution of alimited partnership to a corporate general partner.
Effective: Upon approval. Summer 1999

Hawaii Tax News

Recently Issued Tax
Publications

T

he following is a list of the publications
issued by the Department of Taxation from
November 1998 through June 1999. Copiesof these publications may be downloaded from the
Department’s website. With the exception of the Hawaii
Administrative Rules, copies of these publications also
may be obtained from any district tax office or by mailthrough the Department’s Forms Request Line.
Addresses and telephone numbers are provided on thelast page of this newsletter.
Copies of Administrative Rules are available for a fee(50¢ per copied page). To request a copy, mail yourrequest to the Department of Taxation, Attention: Rules
Office, P. O. Box 259, Honolulu, Hawaii, 96809-0259.
Include your name, address, and telephone number;
identify the rule (e.g., "intermediary services"); andprovide a check payable to the "Director of Finance" inthe amount specified below. The rules listed below also
are available at the Department’s website. To access a
specific rule, go to the Announcement regarding the
adoption of those rules and click on the link to theapplicable rule (e.g., to access the intermediary services
rules, go to Announcement No. 99-2 and click on the linkto those rules).
Section 18-237-13(6)-01 to 18-237-13(6)-09, HAR- Relating to the application of the general excise tax tointermediary services. ($14.00)
Section 18-235-61-04, HAR - Relating to the
exemption from withholding of income taxes on wagesof qualifying nonresident employees. ($2.50)
TIR No. 98-9 - Provides guidance regarding theapplication of the general excise tax to the gross income
received from the sale of a service and contracting.
TIR No. 99-1 - Provides information on the filing oftax returns required by taxpayers who pay taxes byelectronic funds transfer.
Announcement No. 98-24 - Informs taxpayers thatForm G-37, General Excise Tax Exemption for Certified
or Approved Housing Projects, was revised.
Announcement No. 99-1 - Provides a list of
candidates for political office who have registered withthe campaign spending commission.
Announcement No. 99-2 - Announces the adoptionof Hawaii Administrative Rules, relating to theintermediary services rate.
Announcement No. 99-3 - A Listing of New and
Obsolete/Retired Tax Forms, Instructions, andSchedules; Errors Found on Hawaii Tax Forms As of
February 19, 1999.
Announcement No. 99-4 - Announces the adoptionof Hawaii Administrative Rules, relating to the
exemption from withholding of income taxes on wages

Page 7of qualifying nonresident employees.
Announcement No. 99-5 - Confirms that a multistate
taxpayer must include dividends, interest, royalties, andgains received from a foreign corporation in its businessincome that is subject to apportionment.
Announcement No. 99-6 - A listing of the Tax
Information Releases in effect and obsolete as of March
17, 1999, and a listing of Hawaii Administrative Rules
related to taxation.
Announcement No. 99-7 - Announces the extensionof time for filing 1998 Hawaii tax returns and thepayment of taxes for taxpayers serving in the Kosovo
conflict.
Announcement No. 99-8 - Provides information on
Act 10, SLH 1999, which restores the cigarette andtobacco tax exemption for sales of cigarettes and tobacco
products to the United States or any of its
instrumentalities (e.g., military installations).
Announcement No. 99-9 - Provides information on
Act 24, SLH 1999, which allows insurance companies tooffset their insurance premium taxes with the
low-income housing tax credit.
Announcement No. 99-10 - Requesting suggestions
for improving the tax forms.
Announcement No. 99-11 - Informs taxpayers of the
Hawaii Income Tax Conformity to the Internal Revenue
Code.
Announcement No. 99-12 - Announces the issuanceof Written Opinion No. 99-001, regarding the applicationof the general excise tax income-splitting provisions in
section 237-18(f), HRS, and withholding requirements
in section 237-44(d), HRS, to destination managementcompanies.
Tax Facts No. 98-3 - Provides information relating
to tax issues for Hawaii nonprofit organizations.
Tax Facts No. 98-4 - Provides information regarding
the transient accommodations tax on time shareoccupancy from the time share interval owner’s
perspective. 

Pending Tax
Publications

S

ince this issue of the Hawaii Tax News wasdevoted to summarizing the tax bills passed by
the 1999 Legislature, the listing of pending tax
publications could not be included due to space
limitations. The listing will be included in the fall issueof the Hawaii Tax News. DISTRICT TAX OFFICESState Office Building
3060 Eiwa Street, #105
Lihue, HI 96766-1889
FAX: 808-274-3461
TELEPHONE: 808-274-3456

KAUAI DISTRICT OFFICE

State Office Building
75 Aupuni Street, #101
Hilo, HI 96720-4245
FAX: 808-974-6300
TELEPHONE: 808-974-6321

HAWAII DISTRICT OFFICE

State Office Building
54 S. High Street, #208
Wailuku, HI 96793-2198
FAX: 808-984-8522
TELEPHONE: 808-984-8500

MAUI DISTRICT OFFICE

Princess Ruth Keelikolani Building
830 Punchbowl Street
Honolulu, HI 96813-5094
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)
Tax Forms and CD-ROM (Nominal Cost) by Mail:
808-587-7572
1-800-222-7572 (Toll-Free)
Tax Forms by Fax:
On Oahu: 587-7572
All Others: 808-678-0522 from your fax machine

OAHU DISTRICT OFFICE

http://www.state.hi.us/tax/tax.html

WEB INFORMATION AND FORMS

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.

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