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

Volume 5, Number 2State of Hawaii ! Department of Taxation

E-file via the Internet!

N

ow YOU can e-file (electronically file) a dozen
Hawaii tax forms right from your computer via
the State’s Internet portal at www.eHawaiiGov.org! The
cost for using this on-line service is only $2.50 for eachtransaction involving a payment; no payment . . . no fee!
Currently available for e-filing are estimated income
tax forms N-1, N-3, and N-5; extension forms N-100,
N-101A, N-301, G-39, TA-8, and RV-7; withholding tax
return Form HW-14; tax clearance application Form
A-6; and one-time event GE application Form G-5. Just
follow the 5 simple steps below.
Step 1 – Registration/Sign In. At theeHawaiiGov.org website, select “File Your Taxes
Online with E-Filing,” read the requirements, and click“I Have Read the Requirements.”
Select “Individual/Sole Proprietor” or “Business
Entity” to register. Enter the basic information
requested, a password of your choice, and your e-mailaddress. In subsequent visits, simply sign in with youruser ID (your social security number or federal
employer’s identification number) and password.
Step 2 – Select and Complete Form. Select the form
you want to e-file and fill in the applicable data fields.
Some of the data are pre-filled based on your registration
information and should be checked for accuracy. Returnto the registration screen to correct pre-filled fields.
NOTE: If you are a tax professional, you cannot file
your clients’ tax forms under your registration. Clients
must separately register and provide you with thenecessary information (and power of attorney) to submit
forms on their behalf.
Step 3 – Verify Information. Review and verify all
entries and then click “Submit.” If any errors aredetected (e.g., missing entries, an alphabet in a field thatshould contain only numbers, etc.) a list of those errors
will appear. Click “Submit” after making any
corrections.
Step 4 – Authorize Payment. Payments are madethrough an electronic check process called “VirtualPay.”
The maximum amount payable through VirtualPay,
including the $2.50 transaction fee, is $25,000. For yoursecurity, only the amount paid, not your accountinformation, is saved. If a payment is to be made, apayment screen will appear and must be completed sothat your bank account can be debited. After entering
your payment information, you will be asked to review

SUMMER 2001

the information before clicking “Authorize Payment.”
Step 5 – Receipt/Confirmation. After the payment
has been authorized, a receipt will appear and should beprinted. Confirmation also will be e-mailed to you. The
receipt and e-mailed confirmation should be kept in yourfiles because both contain important information.
If you want to see what you have filed, simply sign inand click “History” on the forms page to access yourrecord and to view the forms that you have e-filed.
Work on the next phase of this project has alreadybegun. In the next few months, we expect the periodic
general excise tax return and the periodic transient
accommodations tax return to be available.
For more information, click “F.A.Q.” at the bottomof the Registration/Sign In page (see Step 1 above), call
us at 808-587-4242 (toll-free at 1-800-222-3229), ore-mail our electronic filing unit at efile@tax.state.hi.us.

Tax Season UpdateT

he recently concluded filing season seemed just
as fast-paced as it usually is. What we foundastonishing, however, was the increased use of some of
our new and improved services!
New technology has provided an alternative, andsometimes easier, way for people to get tax forms andinformation and to file their returns. For the January
1-April 20 period, our website had about 1,174,000 hits
which is almost 26% higher than last year!
The number of e-mails we received also was up. Last
See Tax Season Update, Page 2

IN THIS ISSUE
E-file via the Internet! . . . . . . . . . . . . . . . . . 1
Tax Season Update . . . . . . . . . . . . . . . . . . 1
The Direct Line . . . . . . . . . . . . . . . . . . . . . . 2
Post-Filing Questions . . . . . . . . . . . . . . . . . 2
Summer Workshops . . . . . . . . . . . . . . . . . . 3
Legislative Highlights . . . . . . . . . . . . . . . . . 3
Tax Review Commission. . . . . . . . . . . . . . . 5
2002 Legislative Items . . . . . . . . . . . . . . . . 5
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

A summary of the tax-related
bills passed by the 2001
Legislature is included in thisissue of the Hawaii Tax News
starting on page 3. At the time
this issue went to print, final
disposition of some of the bills
was still pending.
A tax review commission has
been appointed by the 2001
Legislature as required by theState Constitution. The 2001 Tax
Review Commission will start its work in July. More on
the commission may be found on page 5.
The Department has been charged with reporting to
the 2002 Legislature on several matters. In addition, theDepartment will be forming task forces to address othermatters that arose during this past session. Learn more
about what may be coming up on page 5. Volunteers arewelcome.
Legislative changes and progress on the various
initiatives will be discussed in the second half of this year
at workshops, meetings, and in the next issues of Hawaii
Tax News.

Tax Season Update(From Page 1)

year we received about 1,300 e-mails through our
website. While our webmaster still fielded an average of
20 e-mails per day this year, 1,400 e-mails also were sent
to our Taxpayer Services Branch during the filingseason.
Our inaugural joint federal/State electronic filingprogram (JELF) exceeded our expectations, and manythanks go to all of you who participated this year andwho did such a fine job. Through April 20th, a total of
22,770 Form N-11 tax returns have been filed.
We have found, however, that a newtechnology-based option is not always what taxpayers
want. For example, the live operators that replaced our
automated forms by mail/fax system seemed to make all
the difference in the world to the 19,285 people that used
this service, as that number represents an increase of
176%! Our Taxpayer Services Branch telephone staff
still answered about 55,600 telephone calls throughApril 20th despite the increased use of other services.
Sometimes, the human option is still the best choice.
As a final note, our annual curbside service on April

Summer 2001

20th took in 175 pounds (about 5,280 pieces) of lastminute tax returns and extensions between 5:00 PM andmidnight!

Post-Filing QuestionsJ

ust because the income tax filing season has
come to an end doesn’t mean that tax questions
and problems go away until next year. Here are somecommon post-filing questions, answers, and tips.
Question: I am due both an income tax refund and ageneral excise tax refund, but I have yet to get them after
3 months. I did move but I informed the U.S. Post Officeand my mail is being forwarded to my new address.
Answer: Call your district tax office to see if yourchecks have been returned to us. The U.S. Postal Service
does NOT forward Hawaii refund checks even if you
give them a forwarding address and will return them tothe district tax office that you filed your returns with.
TIP: Use Form GEW-TA-RV-2, Change of Address
Form (located at the front of your booklet of general
excise/use tax forms), to change your general excise tax
mailing address. To change your income tax mailingaddress, send or fax (808-587-1488) to us a signed
letter/note with your name, social security/federal
employer’s identification number, and new mailingaddress.
Question: I can’t cash my refund check because myname is misspelled. Can I get the check re-issued?
Answer: Yes you can. Send the check and a letter
explaining the problem back to the district tax office that
See Post-Filing Questions, Page 3

The Hawaii Tax News is a publication of the State of
Hawaii, Department of Taxation.
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
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, audio code 7700

Summer 2001

Hawaii Tax News

Post-Filing Questions(From Page 2)

you filed your return with. After the Department’s
records are corrected, a new check will be authorized andsent to you.
TIP: The procedure is the same for most other errors
such as an incorrect social security number. However, if
a taxpayer named on the check has since passed away,
also include with the check a completed Form N-110,
Statement of Person Claiming Refund Due a Deceased
Taxpayer, and copies of any supporting documents.
Question: Our company just found out that some of lastyear’s business to business transactions qualified for the
3.5% general excise tax rate under Act 71, SLH 1999, as
amended by Act 198, SLH 2000. Can we get a refund of
the tax we overpaid?
Answer: If you have already filed your annual general
excise tax return Form G-49, you can file an amended
annual return, Form G-55, to claim a refund of the tax
overpaid. You will not need to amend each of yourmonthly periodic tax returns.
TIP: The reduced rate on qualifying transactions in 2001
is 3.0%. For more information about the pyramiding
relief provisions of Act 71, visit our website atwww.state.hi.us/tax.

Summer Workshops

T

he Department will be holding summer
workshops on Oahu, Maui, Hawaii, and Kauai.
The topics which will be covered at the half day
workshops include a discussion on the 2001 legislation,
recent significant tax decisions, select topics on general
excise and use taxes, and the taxation of LLCs and flow
through entities. CPE credit for CPAs attending theworkshops will be available.
The registration form may be obtained from any
district tax office, by calling our Forms By Fax/Mail line
at 587-7572 (toll-free at 1-800-222-7572), or by
downloading it from our website at www.state.hi.us/tax.

Legislative HighlightsT

he following is a digest of bills passed by the2001 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 isPage 3

not intended to be either authoritative or complete.
All bills are subject to the Governor’s approval. The
Governor has until June 25, 2001, 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
Administrative Tax Measures
S.B. No. 992, S.D. 2, H.D. 2, C.D. 1
Relating to Tobacco
Establishes the Cigarette Tax Stamp Enforcement
Special Fund, Tobacco Enforcement Special Fund, andCigarette Tax Stamp Administrative Special Fund.
Prohibits the resale of cigarettes purchased at sales
outlets operated under the regulations of the U.S. Armed
Services. Creates a presumption that all cigarettes are
subject to the cigarette tax. Allows licensees to purchasecigarette tax stamps at a reduction of 0.4% of thedenominated value of each stamp purchased. Authorizes
the Department to increase or decrease the 0.4%
reduction by rule under chapter 91, HRS.
Effective upon approval. Reduction effective September
1, 2001.
ACT 44 (S.B. No. 1192)
Relating to Payment of Taxes by Electronic Funds
Transfer
Repeals the 2% penalty provision for taxpayers who
elect to participate in the EFT program and fail to remit
their taxes by an approved EFT method on or before thedate the taxes are due.
Effective April 26, 2001.
ACT 45 (S.B. No. 1195, S.D. 1)
Relating to Taxpayer Communication
Confidentiality Privileges
Extends confidentiality privileges for certain taxpayer
communications to all taxes administered under Title
14, HRS.
Effective April 26, 2001, and applies to taxable years
beginning after December 31, 2000.
General Excise / Use Tax Measures
ACT 210 (H.B. No. 1685, H.D. 1, S.D. 1, C.D. 1)
Relating to Taxation
Provides general excise and use tax exemption for
amounts received from the leasing of aircraft or aircraft
engines used in interstate air transportation.
Effective July 1, 2001.
ACT 125 (S.B. No. 1193, S.D. 1, H.D. 1, C.D. 1)
Relating to General Excise Tax on Nonprofit
Organizations
Simplifies the application process for certain nonprofit
organizations seeking exemption from the payment of
See Legislative Highlights, Page 4

Page 4

Hawaii Tax News

Legislative Highlights(From Page 3)

general excise taxes and reduces the filing burden forthese organizations.
Effective July 1, 2001.
ACT 164 (S.B. No. 1264, S.D. 2, H.D. 2)
Relating to Aquaculture
Adds aquaculture and seedstock to the definition of“wholesaler” in the General Excise Tax Law.
Effective July 1, 2001.
Income Tax Measures
H.B. No. 1074, H.D. 2, S.D. 2, C.D. 1
Relating to Drought Mitigating Facilities
Allows a refundable income tax credit equal to 4% of thequalifying costs incurred for the construction of a new
drought mitigating water storage facility, or the repair orreconstruction of an existing water storage facility.
Applies to taxable years beginning after December 31,
2000, and before January 1, 2006.
ACT 36 (S.B. No. 264, S.D. 1)
Relating to Certification for Tax Exemption
Allows licensed audiologists to certify impairment ofdeafness for income tax purposes.
Effective April 26, 2001, and applies to taxable years
beginning after December 31, 2001.
S.B. No. 493, S.D. 2, H.D. 2, C.D. 1
Relating to Public Schools
Establishes the Hawaii School Repair and MaintenanceFund. Provides taxpayers licensed under chapters 444,
460J, or 464 a nonrefundable income tax credit equal to
10% of the value of in-kind services contributed to theFund (aggregate value of the contributions of in-kindservices capped at $40,000 per taxpayer).
Income tax credit applies to taxable years beginning
after December 31, 2000.
ACT 119 (S.B. No. 699, H.D. 1)
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 May 18, 2001.
ACT 199 (S.B. No. 854, S.D. 1, H.D. 1)
Relating to Taxation
Conforms Hawaii income tax law to federal Internal
Revenue Code provisions.
Applies to taxable years beginning after December 31,
2000.

Summer 2001

S.B. No. 1211, S.D. 2, H.D. 2, C.D. 1
Relating to School Facilities
Establishes the Hawaii School-Level Minor Repairs andMaintenance Special Fund to provide moneys forschool-level minor repairs and maintenance. Allows anindividual whose state income tax refund for any taxable
year is $2 or more to designate $2 of the refund to bedeposited into the Special Fund.
Applies to taxable years beginning after December 31,
2000.
High-Technology Tax Measures
ACT 221 (H.B. No. 175, H.D. 2, S.D. 2, C.D. 1)
Relating to Taxation• Adds a nonrefundable income tax credit equal to 4%of the renovation costs to plan, design, install,construct, and purchase technology-enabled
infrastructure equipment to provide a commercial
building with technology-enabled infrastructure.
Applies to taxable years beginning after December
31, 2000, and before January 1, 2006.
• Exempts from the general excise tax and the public
service company tax amounts received by a public
Internet data center. Applies to gross income
received after June 30, 2001, but not after December
31, 2005.
• Exempts from the general excise tax the value orgross income derived from the sale of a net operating
loss by a qualified high technology business.
Effective January 1, 2001, and will be repealed on
December 31, 2005.
• Amends current tax benefits for high technology
industries.
Miscellaneous Tax Measures
ACT 32 (H.B. No. 518, H.D. 1)
Relating to Tobacco
Designates as illegal any package of cigarettes that bears
a brand name that is a registered trademark of a Master
Settlement Agreement participant and the package isimported by someone other than the participating
manufacturer of that cigarette brand. Creates a Class B
felony for any person to knowingly affix any cigarette
stamp to the package of any cigarettes that are illegal or
altered.
Effective April 26, 2001.
ACT 143 (H.B. No. 1345, H.D. 1)
Relating to Energy Content of Fuels
Adjusts the fuel tax to reflect the energy content ofalternative fuels and reduces the fuel tax rate ofalternative fuels.
Applies to taxable years beginning after December 31,
2001.
See Legislative Highlights, Page 5

Summer 2001

Hawaii Tax News

Legislative Highlights•(From Page 4)

Act 64 (S.B. No. 1198, S.D. 1)
Relating to Public Service Company Tax
Effectuates an agreement entered into by and among theState, the Counties, and certain public service companies
that provides for a sharing of the public service company
tax revenues with those counties that establish byordinance an exemption from the real property tax for
public service companies.
Effective July 1, 2001.

Tax Review
CommissionEvery 5 years a State Tax Review Commission
conducts a systematic review of Hawaii’s tax
structure and recommends revenue and tax policies. The
following 2001 Commission members were appointed
by the Governor and confirmed by the Senate:• George Freitas - Former Director of Taxation• Marilyn Gagen - Tax Partner, Deloitte & Touche LLP• Craig Hirai - Tax Attorney/CPA, Torkildson Katz
Fonseca Jaffe Moore & Hetherington• James E.T. Moncur, Professor of Economics andDirector of Water Resources Research Center at the
University of Hawaii at Manoa• Marilyn M. Niwao - Attorney/CPA, Matsuyama,Niwao & Associates• Cyrus Oda - Area Director of Finance for theSheraton Hotels of Waikiki• Leighton Wong - Attorney, Pacific Guardian Center

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•

2002 Legislative Items

T

he Department will be conducting studies on
several tax issues and reporting back to the 2002
Legislature. In addition, the Department will be formingtask forces to address certain tax issues that arose during
this past session. The following are items that the
Department will be working on for the 2002 Legislature.
• Collection of general excise taxes from federal
contractors. Act 206 (H.B. No. 407, H.D. 1, S.D. 1,
C.D. 1) requires the Department of Taxation tocontinue working with various parties to devise asystem to enforce the collection of general excise•

Page 5

taxes from federal contractors.
Mobile Telecommunications Sourcing Act(MTSA). Last year, Congress passed the MTSA
which provides a uniform method of sourcing
income from wireless telecommunications to only
one taxing jurisdiction. Under the MTSA, all income
generated from a wireless customer will be sourced
to the customer’s “primary place of use.” This newfederal act becomes effective on August 1, 2002.
Accordingly, states, including Hawaii, are beginningto draft legislation to implement the MTSA.
Clarify the capital goods excise tax credit. Bills
were submitted in the 2001 legislative session which
would have extended the credit to purchases ofsoftware, services that were included in the basis of
the property, and purchases by insurance companies;
and avoid recapture of the credit upon disposition ofcomputer hardware and equipment to a nonprofit
educational institution in Hawaii.
Reciprocal income tax agreement with
California. H.R. No. 137 requests the Department toreport to the Legislature on the feasibility of entering
into a reciprocal tax agreement with California.
Motion picture tax incentives. S.C.R. No. 29, S.D.
1, H.D. 1 requests consideration of changes to thecriteria for motion picture and television tax
incentives.
Technology industry. S.C.R. No. 28 requests theformation of a joint legislative technology task force
to develop clear goals and an implementation plan to
improve Hawaii’s technology industry, and requests
the streamlining of state film permitting.
Income tax conformity. Section 235-2.5(c), HRS,
directs the Department to submit to each regularsession of the Legislature, a bill to conform to
Subtitle A, Chapter 1 of the IRC, as it applies to thedetermination of gross income, adjusted grossincome, ordinary income and loss, and taxable
income.
Estate tax repeal. The Hawaii estate and transfer tax
is imposed on the transfer of a taxable estate, andequals the federal state death tax credit. Both housesin Congress have passed bills which would reduce or
eliminate the federal estate tax.
Tax Review Commission. Members of the 2001
Tax Review Commission will begin meeting overthe summer and will likely require input andassistance from Department staff.

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 January
2001 through June 2001. Copies of these publications
may be obtained from our website atwww.state.hi.us/tax, from any district tax office, or by
mail through our request line at 587-7572 (toll-free at
1-800-222-7572).
TIR No. 2001-1 - Discusses the application ofcertain Hawaii taxes to qualified subchapter S subsidiarycorporations, qualified subchapter S trusts, and electing
small business trusts.
Announcement No. 2001-1 - Provides a list of
candidates for political office who have registered withthe campaign spending commission.
Announcement No. 2001-2 - A listing of the Tax
Information Releases in effect and obsolete as of January
5, 2001, and a listing of Hawaii Administrative Rules
related to taxation.
Announcement No. 2001-3 - A listing of New Tax
Forms, Instructions, and Schedules; Errors Found on
Hawaii Tax Forms As of March 1, 2001.
Announcement No. 2001-4 - Provides informationon Act 36, SLH 2001, which allows licensed
audiologists to certify for tax purposes that a person is
deaf.
Announcement No. 2001-5 - Provides informationon Act 44, SLH 2001, which repeals the 2 percent
penalty provision for taxpayers who elect to participate
in the EFT program.
Announcement No. 2001-6 - Provides informationon Act 45, SLH 2001, which extends the confidentiality
privileges for certain taxpayer communications to alltaxes administered under title 14, HRS.
Announcement No. 2001-7 - Provides informationon Act 64, SLH 2001, which provides for a sharing of the
public service company tax revenues with those counties
that establish by ordinance an exemption from real
property tax for public service companies.
Announcement No. 2001-8 - Provides informationon Act 119, SLH 2001, which provides a refundable
income tax credit of $1 multiplied by the number ofqualified exemptions the taxpayer is entitled to claim.
Announcement No. 2001-9 - Provides informationon Act 125, SLH 2001, which simplifies the application
process for certain nonprofit organizations seeking
exemption from the payment of general excise tax andreduces the filing burden for these organizations.
Announcement No. 2001-10 - Provides informationon Act 143, SLH 2001, which encourages the use ofalternative fuels by reducing the fuel tax to reflect theenergy content of alternative fuels.

Summer 2001

Announcement No. 2001-11 - Provides informationon Act 164, SLH 2001, which clarifies that the general
excise tax wholesale rate of ½ percent applies
comparably to sales made to aquacultural andagricultural producers and cooperatives.
Tax Facts No. 2001-1 - Provides a general overview
of the appeal process available to taxpayers who do notagree with the assessment of State taxes by the
Department of Taxation.
Tax Facts No. 2001-2 - Provides general
information about the application of the general excise,use, fuel, and net income taxes to agricultural andaquacultural producers in Hawaii.

Pending Tax
Publications

T

he following is a list of the Department’s tax
projects in progress, and the name and telephone
number of the staff member assigned to the project.
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 the application of the capital goods excise tax
credit by focusing on the requirement that the tax
must be paid before the credit may be claimed.
• 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 forreimbursements - section 237-20, HRS. (Grant
Tanimoto, 587-1569)• Clarify the application of the general excise tax
exemption for scientific contracts - section 237-26,
See Pending Publications, Page 7

Summer 2001

Hawaii Tax News

Pending Publications(From Page 6)

•
•

•

•
•

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.
Pyramiding relief for Hawaii businesses under Act
71, SLH 1999, and Act 198, SLH 2000.
General excise tax exemption for exported services

Page 7and contracting and the use taxation of imported
services under Act 70, SLH 1999, and Act 198, SLH
2000.
Use Tax Law• Clarify that property, services, or contracting exempt
from the general excise tax are also exempt from theuse tax.
Conveyance Tax Law• Clarify the application of the conveyance tax,
including transactions involving Fannie Mae. (Grant
Tanimoto, 587-1569)
Miscellaneous• Clarify the application of certain Hawaii taxes to theincome received from property or services purchasedwith a General Services Administration Smart Pay
credit card. (Johnson Lau, 587-1562)• Clarify the use of bonds by cigarette stamping
licensees.

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

FY 2001$ 265.8
17.9
436.9
47.4
181.7
$ 949.8

FY 2000$ 247.1
17.4
422.2
46.2
158.0
$ 891.0

Amount$ 18.7
0.6
14.7
1.2
23.7
$ 58.8Percent
7.6%
3.3%
3.5%
2.6%
15.0%
6.6%

General Fund Revenues$ 825.2$ 765.8$ 59.4

7.8%(Note: Totals may not add up due to rounding.)

Total tax collections for the third quarter of fiscal year 2001 amounted to $949.8 million, $58.8 million more than the third
quarter of fiscal year 2000. Tax collections of $825.2 million deposited into the state general fund for the third quarter
represent a 7.8%, or $59.4 million increase over the previous fiscal year. Third quarter collections rose as evidenced byeconomic indicators: the number of jobs grew 2.9%, construction rose 19.6%, and total personal income increased 4.7%.
Since the third quarter of fiscal year 2001 ended on a weekend, a higher increase could have been expected had the April
payments for March activity been counted for the third quarter.
Besides third quarter increases of $14.7 million in general excise taxes and $18.7 million in individual income tax
collections, the “All Others” increase of $23.7 million includes increases of $9.0 million in public service company taxes,$5.6 million in cigarette and tobacco taxes, $5.0 million in fuel taxes, and $3.8 million in estate and transfer taxes. The
introduction of the cigarette tax stamp on January 1, 2001, was probably a partial one-time contributor to the $5.6 million
growth in cigarette and tobacco taxes. Although third quarter visitor arrivals remained almost unchanged, the hotel
occupancy rate increased 1.6% and the room rate increased 4.6%. As a result, third quarter transient accommodations
taxes climbed 2.6%, or $1.2 million from last fiscal year, in spite of the weekend effect.
With the first, second, and third quarters accounting for growths of $38.6 million, $57.0 million, and $59.4 million,
respectively, the cumulative general fund revenues for fiscal year 2001 rose $154.8 million, or 7.1% over the previous
year. Cumulative total tax collections of $2,723.7 million for the first three quarters amounted to a $157.8 million growth,or 6.2% increase from last 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.