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

Volume 7, Number 4

State of Hawaii • Department of Taxation

Direct Deposit isComing!

W

hen you file your 2003 resident individual
income tax return, Form N-11, you can haveyour State tax refund deposited directly into your bankaccount instead of waiting for a paper check! Direct
deposit will be available for other forms in the future, but
for now will be anotherincentive to e-file theForm N-11. If you e-file
your
Form
N-11
through the joint federal-state e-filing program, yourrefund will be even faster! E-filed returns bypass manual
processing and speed on through. E-filing also results in
fewer errors and is more convenient than filing a paper
return.

Conformity to Federal
Tax Changes

J

ust a reminder that federal tax changes are notapplicable to Hawaii until such time as they areenacted by Hawaii. Federal provisions that were enacted
in 2003 by the Jobs and Growth Tax Relief
Reconciliation Act and the Military Family Tax Relief
Act cannot be claimed on 2003 state tax returns until andunless such legislation is enacted.
If you use tax preparation software, by the way,
check that it actually prepares state tax returns correctly,
and that you are familiar with the particular quirks of thatsoftware.
For example, Hawaii did not adopt the 30% bonus
depreciation and (at least not yet) the 50% bonus
depreciation. Neither has Hawaii yet adopted the
expanded $100,000 IRC §179 expense. Does yoursoftware compute the correct amount of Hawaii
depreciation? Is the correct basis being used insubsequent years? Does it correctly compute the Hawaii
capital goods excise tax credit?
Notify vendors of any errors you find, and visit theirwebsites periodically for any updates and fixes.
As the above example illustrates, it is particularly
important to be aware of the federal provisions that were

WINTER 2003

NOT adopted by Hawaii.
A list of 2002 federal tax changes that are operativeand not operative for Hawaii income tax purposes is
included in our annual “Digest of Tax Measures” that isposted on our website at www.state.hi.us/tax under“Recent Legislation.” The Department is currently
working on the Digest of the 2003 Federal Tax Laws.

2004 Legislative
SessionT

he 2003 legislative session is over and the 2004
session has not yet begun. That doesn’t mean,
however, that legislative activities are not continuing.
Work at all levels is ongoing. In addition to ourannual Internal Revenue Code conformity bill, you can
expect to see in 2004 a number of bills that did not pass in
2003, because the 2004 legislative session is the second
year of the two-year legislative cycle.
For example, House Bill 851, H.D. 1, S.D. 1, which
would repeal the requirement that assessed taxes be paidprior to a first appeal to either the district board of review
or the tax appeal court, is such a carryover bill.
Also, the Senate Tourism Committee held an
See 2004 Session, Page 2

IN THIS ISSUE
Direct Deposit is Coming! . . . . . . . . . . . . . . 1
Conformity to Federal Tax Changes . . . . . . 1
2004 Legislative Session . . . . . . . . . . . . . . 1
The Direct Line . . . . . . . . . . . . . . . . . . . . . . 2
Changes to 2003 Tax Forms. . . . . . . . . . . . 2
Order the 2003 Tax Information CD . . . . . . 4
One-Stop Service is Here! . . . . . . . . . . . . . 4
Lower Tax Rates Effective
January 1, 2004 . . . . . . . . . . . . . . . . . . . . 4
Federal Legislation on Internet Taxes . . . . . 4
Proposed Administrative Rules . . . . . . . . . . 5
Abusive Tax Avoidance Transactions . . . . . 6
New E-mail Addresses . . . . . . . . . . . . . . . . 6
Recently Issued Tax Publications . . . . . . . . 6
Pending Tax Publications . . . . . . . . . . . . . . 7First Quarter State Tax Collections . . . . . . . 7

Page 2

Hawaii Tax NewsThe Direct Line (By Director Kurt Kawafuchi

As we conclude another year, I wish to thank all of
you for the assistance and support you’ve given me. I’m
also looking forward to 2004 and a brand new filingseason. Here are a few things that are new for 2004.
• Direct deposit will be available to you if you file
Form N-11 - no more waiting for a paper check! See
the article on page 1.
• Our recently implemented One-Stop Taxpayer
Services will go a long way towards making it easierfor you to get information and assistance. Our
beefed-up Taxpayer Services Branch on Oahu can
now handle most calls; even routine billing and tax
return adjustment questions and problems. Moreinformation on our One-Stop Service can be found on
page 4.
• Tax-reducing rate changes that will be effective
January 1, 2004, are discussed on page 4. Our staff
has received a number of calls recently about thephased-in general excise tax deduction for certain
business-to-business transactions. When the rate
reduction began, I understand that some businesses
didn’t want to bother with it. Now that the effective
rate will be 1.5%, more people are interested. To see
what transactions qualify, go to our website atwww.state.hi.us/tax. Select “Recent Legislation,”
scroll to the section on the 2000 Legislative Session,and then select “Outline: Act 71 . . .” and also
“Chart of Examples: Act 71 . . .”Finally, I’d like to wish you and your families a safeand happy holiday season!

Winter 2003

individuals, $1,650 for heads of households, $1,900 for
married couples filing joint returns, and $950 for amarried individual filing a separate return.
In recommending an increase to the standard
deduction, the 2001-2003 Tax Review Commission
noted that the deduction had not changed in 20 years and“is the major reason why the State unnecessarily
continues to tax persons with income levels that qualify
for public assistance.”
Tax Facts No. 96-1 is available on our website atwww.state.hi.us/tax, by calling our request line at 587-7572(toll-free at 1-800-222-7572), or from any district tax office.
The Tax Review Commission report is available on our
website at www.state.hi.us/tax/trc_rpt.html.
Keep up to date on the 2004 legislative session atwww.capitol.hawaii.gov.

Changes to 2003 Tax
Forms

H

awaii tax forms have been revised for 2003 toreflect recent tax law changes. The following
list summarizes some of the changes to the tax forms,
new forms for 2003, and forms which are now obsolete.
Extension Forms• Form N-100A, Application for Additional
Extension of Time to File Hawaii Return for aPartnership, Trust, or REMIC - Redesigned back to
an 8-1/2 inch by 11 inch form and will no longer beprocessed as a payment voucher. The signature line
is on the front of the form once again.
See Tax Form Changes, Page 3

2004 Session(From Page 1)

informational hearing in October on House Bill 1554,
H.D. 1, S.D. 2, which would allow the counties to impose
a 1% retail sales tax on tangible personal property inexchange for their share of the transient
accommodations tax.
The sales tax proposed in House Bill 1554, H.D. 1,
S.D. 2, is a new tax and is different than the State’s
general excise tax. For information on the differences,
see our publication, Tax Facts No. 96-1, General Excise
vs. Sales Taxes.
Another carryover bill is Senate Bill 1621, H.D. 1,
which would increase Hawaii’s standard deduction for
individuals who do not itemize their deductions.
The standard deduction is currently $1,500 for single

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:

Kurt Kawafuchi
Lynne Kuroda
Princess Ruth Keelikolani Building
830 Punchbowl Street, Room 219
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

Winter 2003

Hawaii Tax News

Tax Form Changes(From Page 2)•

Form N-101B, Application for Additional
Extension of Time to File Hawaii Individual Income
Tax Return - Redesigned back to an 8-1/2 inch by 11
inch form and will no longer be processed as apayment voucher. The signature line is on the front of
the form once again.
• Form N-301, Application for Automatic Extensionof Time to File Hawaii Corporation Income Tax
Return - The signature line was moved to the front of
the form. The list of reasons for rejection of theextension is still printed on the back of the form.
Individual Income Tax Returns• Form N-11, Individual Income Tax Return(Resident Filing Federal Return) - Direct deposit of
the taxpayer’s refund is available.
• Form N-12, Individual Income Tax Return(Resident Not Filing Federal Return) - (1) The line toreport the Archer MSA deduction was deleted toconform to the federal form. Any Archer MSA
deduction will be claimed in the Total Adjustments
line to conform to the federal instructions. (2) A line
was added for the above the line deduction for
educator expenses. For Form N-11, the deduction for
educator expenses will already be included in the line
for the taxpayer’s federal adjusted gross income.
• Form N-13, Individual Income Tax Return(Resident Short Form) - (1) The threshold amount forreporting interest income and ordinary dividends on
Parts I and II of Form N-13 is increased from $400 to$1,500 to conform to the federal threshold amount.
(2) A line was added on Form N-13 (and Schedule
CR for other filers) for the renewable energy
technologies income tax credit.
• Form N-15, Nonresident and Part-Year Resident
Tax Return - Same changes as Form N-12.
• All Individual Income Tax Returns - Any amountfor the underpayment of estimated tax penalty should
not be included in the amount overpaid or balance
due lines. If any taxes are due, include the amount of
the penalty on Form N-200V. If there is an
overpayment, the overpayment will be reduced
automatically by the amount of the penalty.
Business Income Tax Returns• Form N-30, Corporation Income Tax Return - In thesignature area, a line was added for the officer who
signs the tax return to print the officer’s name.
• Form N-35, S Corporation Income Tax Return Same changes as Form N-30.

•

Page 3Form N-40, Fiduciary Income Tax Return - (1) Aline was added for the renewable energy
technologies income tax credit. (2) A line was added
to report the tax withheld on Form N-4.
Tax Credit Forms• Form N-157A, Information Statement Concerning
Credit for Energy Conservation, was made obsolete.
The tax credit information for members ofpass-through entities must be provided on theappropriate Schedule K-1.
• Form N-306, Credit for Energy Conservation Corporate, was made obsolete. The information from
Form N-306 was incorporated into Form N-157
which will now be used by all taxpayers.
• Form N-163A, Information Statement Concerning
Fuel Tax Credit for Commercial Fishers, was madeobsolete. The tax credit information for members ofpass-through entities must be provided on theappropriate Schedule K-1.
• Form N-308, Fuel Tax Credit for Commercial
Fishers - Corporate, was made obsolete. The
information from Form N-308 was incorporated into
Form N-163 which will now be used by all taxpayers.
• Form N-312A, Information Statement Concerning
the Capital Goods Excise Tax Credit, was madeobsolete. The tax credit information for members ofpass-through entities must be provided on theappropriate Schedule K-1. If the pass-through entity
has to recapture the credit, the entity must report thecredit recapture information on Form N-312, Part II.
• Form N-316A, Information Statement Concerning
the Motion Picture and Film Production Income Tax
Credit, was made obsolete. The tax credit
information for members of pass-through entities
must be provided on the appropriate Schedule K-1.
• Form N-334, Renewable Energy Technologies
Income Tax Credit, and Form N-334A, Information
Statement
Concerning
Renewable
EnergyTechnologies Income Tax Credit - New forms used
to claim the renewable energy technologies income
tax credit.
Transient Accommodations Tax, Withholding, andRental Motor Vehicle and Tour Vehicle Surcharge
Tax Booklets• All maintenance forms, such as the cancellation,change of address, and change to application forms,
have been removed from the booklets. The
maintenance forms in the general excise tax booklet
are still available.

Page 4

Hawaii Tax News

Order the 2003 Tax
Information CDT

he 2003 Tax Information CD will be available
for a nominal price of $10.00. The 2003 CD will
include Tax Information Releases, Announcements, Tax
Facts, brochures, 2003 tax forms, business registration
forms, and employer’s reporting forms. All forms will
have writable fields.
Order forms are available on our website atwww.state.hi.us/tax, by calling our request line at587-7572 (toll-free at 1-800-222-7572), or from any
district tax office. Persons who attended our year-end
workshop may purchase the 2003 CD at a discounted
price of $5.00.

One-Stop Service
is Here!

Department plans to implement an Interactive Voice
Response system in early 2004 so that callers can get
automated refund information 24 hours a day, 7 days aweek.
One-stop customer service should be fully up to
speed sometime next year. In the meantime, there are anumber of new positions to fill and employees to train;
your patience during this transitional period is greatly
appreciated.
The telephone numbers for Taxpayer Services arelisted on the last page of the newsletter.

Lower Tax Rates
Effective January 1,
2004

A

•

D

o you know which office to call when you havea tax question or problem that needs to beresolved? Recent changes at the Department make thatan easy question to answer!
Just call our Taxpayer Services Branch on Oahu,
toll-free from the neighbor islands and continental U.S.,
for one-stop customer service.
If you need basic information about a notice, bill,procedure, or tax, just call Taxpayer Services! In mostcases, they can help. Taxpayer Services has been
restructured, beefed-up with positions transferred to it
from other areas, and given the authority to resolve many
problems without referring you to another section.
With Taxpayer Services handling the more routine
calls, specialists in other areas, such as audit andcollections, are able to focus on the more serious ordifficult needs of our customers.
For our neighbor island customers, your district tax
offices will continue to provide the excellent one-stop
service they have always provided to their walk-in
clientele. However, most notices, bills, and othercommunications will have the Oahu Taxpayer Services
telephone numbers on them.
When calling Taxpayer Services, you will have theoption to hear recorded information about commonly
requested questions, even after hours! Just press themessage number and the pound (#) sign when prompted.
During business hours, press zero (0) at any time to beconnected to a live assistor. If something comes up that
we think will generate a lot of calls, a new message canbe added immediately!
To make it easier to get refund information, theWinter 2003••

number of phased-in tax rate reductions will
once again change on January 1, 2004.
The phased-in general excise tax deduction factor for
qualifying sublease transactions will increase from0.75 to 0.875, for an effective rate of 0.5%. This is thelast increase to the sublease deduction factor, whichbegan in October 1998.
The phased-in general excise tax deduction factor forbusiness-to-business transactions that qualify for
pyramiding relief under Act 71, SLH 1999, and Act
198, SLH 2000, will increase from 0.5 to 0.625, foran effective rate of 1.5%.
The public service company tax rate on sales oftelecommunications services by a public utility to aninterstate telecommunications provider for resale isreduced from 4% to 3.5% for calendar year 2004.

Federal Legislation on
Internet TaxesT

he U.S. Congress is considering amendments to
the Internet Tax Freedom Act (ITFA) that could
have a significant impact on Hawaii.
The ITFA imposed a temporary moratorium (which
expired on November 1, 2003) on: (1) the taxation ofInternet access, unless the taxes were imposed andenforced prior to October 1, 1998, and (2) on the impositionof multiple or discriminatory taxes on e-commerce.
The grandfather clause regarding the taxation ofInternet access was important for Hawaii, because
See Internet Taxes, Page 5

Winter 2003

Hawaii Tax NewsInternet Taxes(From Page 4)Internet access is subject to our general excise tax (GET)just like any other service.
The House-passed version, H.R. 49 (the Senate isconsidering a similar measure, S. 150), makes themoratorium permanent, removes the grandfather clause,and more significantly broadens the definition of“Internet access service,” with the potential effect ofallowing a broad spectrum of telecommunications
services utilizing the Internet to escape taxation.
Under the ITFA, telecommunications services are not
Internet access services and can be taxed. Under H.R. 49
and S. 150, telecommunications services are not Internet
access services UNLESS “used to provide Internet access.”
If telecommunications companies continue toconvert their traditional telephone systems toInternet-based systems, and if services to provide accessto the Internet for the purpose of voice transmission are
considered services to provide Internet access, then
Hawaii’s public service company and GET tax basewould erode considerably, resulting in an estimated $40
million to $70 million reduction in tax collections.
The Department is keeping a close eye on this federal
legislation, and we will inform the business community,
particularly those firms involved in telecommunications,of the progress of this bill as it moves through Congress.

Proposed
Administrative Rules

T

he Director of Taxation will hold a public
hearing on December 29, 2003, 9:30 a.m., at the
Princess Ruth Keelikolani Building, Room 314, to allow
the public to comment on the proposed adoption of thefollowing administrative rules:
Proposed amendments to sections 18-247-1
through –12, Hawaii Administrative Rules, relating
to the conveyance tax. The proposed amendments clarify
and update provisions in accordance with statutory changes
and Department positions relating to: (1) The imposition of
the tax (that a conveyance or transfer of realty is subject tothe conveyance tax unless exempt by statute; that the tax ispayable on the actual and full consideration paid or
ultimately required to be paid; it is immaterial that a
conveyance or transfer will result in a capital gain or loss;
and that the conveyance tax is not applicable to an option
contract or a right of first refusal agreement when they are a
prelude to a conveyance of realty). (2) Definitions (“actualand full consideration,” authorized representative,”

Page 5“purchaser,” and “seller”). (3) Basis and rate of tax(reflecting current statutory tax rates; clarifying theconveyances and transfers that are subject to the tax;
describing application of the tax to sales of time share units;
and updating appendices with respect to rate tables,
extensions or amendments to leases, and Inwood factor).
(4) The scope of certain statutory exemptions to the tax.
Proposed amendments to section 18-237D-1-01 to–15-01, Hawaii Administrative Rules, relating to thetransient accommodations tax. The proposed
amendments clarify and update provisions inaccordance with statutory changes and Department
positions relating to: (1) The application of the tax totransient accommodation rentals and long-term rental
agreements; (2) Update the tax rate to 7.25%; (3) The
definition of “occupant”; (4) The application of the tax
with respect to rentals due to natural disasters; (5) The
scope of exemptions with respect to military personnel,
students, diplomats, and non-military officers andfederal and state government employees; and (6) The
application of the tax as well as other requirements totime share plan managers.
Proposed amendments to section 18-235-98,
Hawaii Administrative Rules, relating to extensions oftime for filing tax returns. The main purpose of theamendment is to provide that the 4-month automatic
extension of time for filing an income tax return for
individuals and the 3-month automatic extension forpartnerships (or entities treated as partnerships for tax
purposes), estates, trusts, or real estate mortgage
investment conduits will not require any form (orapplication) to be filed with the Department. Extensions
for corporations are not affected by these amendments. In
particular the amendment: (1) Provides that automatic
extensions will be granted if the taxpayer files the tax
return within the extension period accompanied by
payment of the balance due; (2) Repeals the 0.5% penalty
for failure to pay after timely filing an income tax returnfor a taxpayer who obtains an automatic extension; (3)Clarifies that if a taxpayer obtains an automatic extension,
but then fails to pay in full when the return is filed within
the extension period, the extension will be invalidated andpenalties and interest will be calculated from the originaldue date; and (4) Provides that taxpayers who seek asecond extension of time to file must provide theDepartment with “reasonable cause” for additional time
to file the return and also make payment of 90% (rather
than 100% required under the current rules) of theestimated tax liability at the time of application.
A copy of the proposed rules may be obtained fromany district tax office. For more information, or torequest a copy of the proposed rules, call the Department
of Taxation, Director’s Office, at 587-1540.

Page 6

Hawaii Tax News

Abusive Tax
Avoidance
Transactions

D

irector Kurt Kawafuchi has signed a
Memorandum of Understanding (MOU) with
the Internal Revenue Service (IRS) in which the IRS will
share information on abusive tax avoidance transactions
and taxpayers who participate in them with Hawaii andother states that have signed the MOU.
These schemes hurt all of us in Hawaii, and this new
partnership will help ensure that the participants pay
their fair share of taxes.
Of course, it is our hope that this program, and theresulting publicity, will make some participants think
twice before they enter into an abusive tax avoidance
transaction.

New E-mail Addresses

Beginning January 2004, the entire Department
will be switching from the GroupWise e-mailsystem to LotusNotes, and our addresses will bechanging. For example, the general e-mail address for
theDirector’s
Officewillchangeto
Tax.Directors.Office@hawaii.gov, and the Taxpayer
Services information e-mail address will change toTaxpayer.Services@hawaii.gov.
E-mail sent to the old e-mail addresses will be
automatically forwarded to the new addresses for several
months at least. A more complete listing will be provided
in our publication, “Hawaii Tax Information at a
Glance,” when it is revised in 2004.

Recently Issued Tax
Publications

T

he following is a list of the publications issued
by the Department of Taxation from January
2003 through December 2003. Copies of thesepublications may be obtained from our website atwww.state.hi.us/tax, by calling our request line at587-7572 (toll-free at 1-800-222-7572), or from any
district tax office.
TIR No. 2003-1 - Provides information on the proper
application of the law regarding the high technology
business investment tax credit.
TIR No. 2003-2 - Provides information on theWinter 2003

extension of deadlines and other tax relief for membersof the armed forces, reserves, and Hawaii National
Guard.
Announcement No. 2003-1 - Provides informationon the new and revised high technology business
investment tax credit forms.
Announcement No. 2003-2 - A listing of new andobsolete tax forms, instructions, and schedules; errors
found on Hawaii tax forms.
Announcement No. 2003-3 - Provides a list of
candidates for political office who voluntarily filed
affidavit forms with the campaign spending
commission.
Announcement No. 2003-4 - Provides informationon Act 14, SLH 2003, which provides corrective
legislation to Hawaii’s estimated tax underpayment
penalty and clarifies the law regarding extensions to file
tax returns.
Announcement No. 2003-5 - Provides informationon Act 100, SLH 2003, which provides a nonrefundable
attractions and educational facilities tax credit equal to100% of certain costs incurred after May 31, 2003, andbefore June 1, 2009, for the development of such
facilities at Ko Olina Resort and Marina and the Makaha
Resort.
Announcement No. 2003-6 - Provides informationon Act 136, SLH 2003, which changes tax
administration by (1) authorizing the Department of
Taxation to waive penalties and interest on tax liabilities
that have been delinquent for more than 90 days, (2)streamlining the offers in compromise process byauthorizing the tax director, instead of the Governor, toaccept offers in compromise for tax liabilities that are$50,000 or less (exclusive of penalties and interest), and(3) allowing the tax director to hire tax criminal
investigators.
Announcement No. 2003-7 - Provides informationon the increase in the cigarette tax to 6.5 cents per
cigarette for sales, use, or possession of cigarettes afterJune 30, 2003.
Announcement No. 2003-8 - Announces theincrease in the Maui County gasoline and diesel fuel tax
rate from 13 cents to 18 cents per gallon, effective July 1,
2003.
Announcement No. 2003-9 - Provides informationon Act 135, SLH 2003, which amends or repeals
obsolete tax laws.
Announcement No. 2003-10 - Provides informationon Act 172, SLH 2003, which brings Hawaii Income
Tax Law into conformity with many but not all of thechanges made to the Internal Revenue Code as ofDecember 31, 2002.
Announcement No. 2003-11 - Provides informationon Act 173, SLH 2003, which authorizes Hawaii’s
See Recent Publications, Page 7

Winter 2003

Hawaii Tax News

Recent Publications(From Page 6)

participation in multistate discussions relating to the
Streamlined Sales Tax Project which is a nationwide
effort being undertaken among the various states.
Announcement No. 2003-12 - Announces the
adoption of the IRS optional standard mileage rates for
2004.
Digest of Tax Measures - Enacted by the State of
Hawaii, Twenty-Second Legislature, Regular Session of
2003.

Pending Tax
Publications

T

Page 7Administration of Taxes• Application of penalties and interest and the waiverof penalties and interest - sections 231-3 and 231-39,
HRS.
• Clarify the offers in compromise process.
Income Tax Law• Clarify the application of the Hawaii tax credit forincreasing research activities.
General Excise Tax Law• Clarify the general excise tax rules, including theapplication of the general excise tax forreimbursements - section 237-20, HRS.
Transient Accommodations Tax• Clarify the application of the transient
accommodations tax.
Conveyance Tax Law• Clarify the application of the conveyance tax.

he following is a list of some of the
Department’s pending tax publications.

First Quarter State Tax Collections
July 2003 - September 2003
(In Millions of Dollars)
Difference
Individual Income Tax
Corporate Income Tax
General Excise Tax
Transient Accommodations Tax
All Others
Total Tax Collections

FY 2004$ 274.4
8.2
473.3
46.8
178.8
$ 981.4

FY 2003$ 266.3
4.3
473.2
48.2
174.2
$ 966.2

Amount
$ 8.0
3.9
0.0
-1.4
4.6
$ 15.2

Percent
3.0%
91.1%
0.0%
-2.9%
2.7%
1.6%

General Fund Revenues$ 819.2$ 820.3$ -1.1-0.1%(Note: Totals may not add up due to rounding.)

Total tax collections for the first quarter of fiscal year 2004 amounted to $981.4 million, or $15.2 million (1.6%) morethan the same period of last fiscal year. Tax collections for the first quarter grew for corporate and individual income
taxes to $8.2 million and $274.4 million, respectively. First quarter general excise tax collections remained almost
unchanged at $473.3 million, while transient accommodations taxes dropped slightly by $1.4 million to $46.8 million.
General fund revenues of $819.2 million for the first quarter represent a $1.1 million decrease over last year’s total of$820.3 million.
Even though the economy was improving, the month of July 2003 saw a $56.9 million drop in collections because oftechnical factors including the weekend effect where taxes due on June 30, 2002 (Sunday) were payable on July 1,
2002 (Monday), boosting the July 2002 collections. As the economic growth accelerated, increased collections forAugust and September 2003 raised the cumulative total for the first quarter of the current fiscal year to offset this big
drop in July 2003.

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

TAXPAYER SERVICES BRANCH
Princess Ruth Keelikolani Building
830 Punchbowl Street
Honolulu, HI 96813-5094
Website: www.state.hi.us/tax
E-mail: Taxpayer_Services@tax.state.hi.us
Fax: 808-587-1488
Telephone: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)