Hawaii Tax News
Volume 3, Number 4

State of Hawaii • Department of Taxation

Team T.E.A.C.H. is
Here!

WINTER 1999

Rules Amended For
Tax Withholding
ExemptionE(L to R) Susan Adaniya, Cielo Molina, Bert Lyon,
Cathleen Tokishi, Gloria AmaralTo further the Department of Taxation’s efforts
at taxpayer education, the Department’s
outreach program was formalized through theestablishment of the Team T.E.A.C.H. (Taxpayer
Education and Awareness for Compliance in Hawaii)
project.
The members of Team T.E.A.C.H. are dedicated toencouraging voluntary compliance through education.
Staff are available for speaking engagements to all
segments of our community including student groups,
community groups, senior citizen groups, businessgroups, and others. It is, however, more than a speaker’s
bureau. The project also seeks educational opportunities
amongst those who may not even be aware of theapplication of Hawaii’s tax laws to them, such as
nonprofit organizations. Team T.E.A.C.H. also can help
those of you who are engaged in tax education byoffering various Department publications such asbrochures, Tax Facts, etc., for distribution in yourclasses.
Cathleen Tokishi of the Taxpayer Services Branch
has been appointed as the coordinator for this program.
Other members of the Team T.E.A.C.H. program include
Susan Adaniya, Oahu District Office; Gloria Amaral,
Hawaii District Office; Bert Lyon, Kauai District Office;and Cielo Molina, Maui District Office.
For more information about what Team T.E.A.C.H.
can do for you, call Cathleen Tokishi, Team T.E.A.C.H.
Coordinator, at (808) 587-1577, or e-mail her at
dotax4@aloha.net. 

ffective September 20, 1999, section
18-235-61-04(b), Hawaii Administrative Rules,
was amended to exclude nonresident employees ofcontractors from qualifying for an income tax
withholding exemption. Prior to the amendment, anonresident employee qualified for the exemption fromwithholding on wages if, among other requirements, thenonresident employee performed services in Hawaii foran aggregate of not more than 60 days during the calendar
year. However, some contractors were claiming an
exemption from withholding for nonresident employees
even though the nonresident employees worked in
Hawaii for more than 60 days during the calendar year.
Based on the amended rules, beginning September
20, 1999, a contractor as defined in section 237-6(1),Hawaii Revised Statutes, is required to withhold Hawaii
income taxes on the wages paid to all nonresident
employees when the contractor is performing work for aconstruction project located in Hawaii. 

IN THIS ISSUETeam T.E.A.C.H. is Here! . . . . . . . . . . . . . . 1
Rules Amended For Tax Withholding
Exemption . . . . . . . . . . . . . . . . . . . . . . . . . 1
The Direct Line. . . . . . . . . . . . . . . . . . . . . . . 2
GET Pyramiding Relief Takes Effect . . . . . . 2
Changes to 1999 Tax Forms . . . . . . . . . . . . 2
Booklet A Supplement . . . . . . . . . . . . . . . . . 3
Order Your 1999 Tax Information CD . . . . . 3
Problem Solving Days Held on Maui . . . . . . 4
Year-End Workshops . . . . . . . . . . . . . . . . . . 4
Use of a PTIN on State Tax Returns . . . . . . 4
Department Ready For Y2K. . . . . . . . . . . . . 4
New Computer System . . . . . . . . . . . . . . . . 5
Website Enhancements . . . . . . . . . . . . . . . . 5
Recently Issued Tax Publications . . . . . . . . 5
Pending Tax Publications. . . . . . . . . . . . . . . 6First Quarter State Tax Collections . . . . . . . 7

Page 2

Hawaii Tax NewsThe Direct Line )By Director Ray K. Kamikawa

In this issue, we highlight someof our taxpayer service initiatives,
such as our enhanced website, newandimproved
1999
Tax
Information CD, workshops,
problem solving days, andpublications.
We announce our latest
service, our Team T.E.A.C.H.
program, that formalizes ouroutreach efforts for our taxpaying
community, and is a natural outgrowth of our workshops,
forums, and seminars. But, instead of the public coming
to us, we will go out to meet with them. This includes not
only speaking engagements, but also any form ofcommunication such as industry newsletters,
coordination with educators, and partnering with otherstate and federal agencies to get our message across inthe format most convenient for our targeted audience.
Just ask us for any assistance from our Team T.E.A.C.H.
program.
Since the end of the legislative session, we have been
making the rounds to obtain feedback on and to help
assist in an understanding of three major Acts -- Act 70(exported services exemption), Act 71 (pyramiding
relief), and Act 178 (hi-tech tax relief). We feel that there
needs to be more communication on the new legislation
which give tax relief to a broad range of businessactivities. Please let us know if you have any questions
relating to the application of these new legislative
initiatives.
As we conclude another year, I wish you and yourfamilies a happy holiday season. 

GET Pyramiding
Relief Takes EffectBeginning January 1, 2000, Act 71, Session Laws
of Hawaii 1999 (Act 71), reduces the effect ofthe pyramiding of the general excise tax on service
transactions by treating those transactions similar to thewholesale sales of tangible personal property. To qualify
for the reduced rate, the property must become an"identifiable element" of the service rendered or theservice must become an "identifiable element" of theservice,property,
contracting,ortransientaccommodations being sold to the customer. The
reduced rate is not applicable to the purchase of overhead
because overhead is consumed by the purchaser. Act 71

Winter 1999

provides for the phase-in of the "wholesale" rate overseven years until the .5 percent rate is reached in 2006.
For calendar year 2000, transactions that qualify for the
reduced tax rate will be taxed at 3.5 percent. Transactions
currently eligible for the .5 percent tax rate are notaffected by Act 71.
New forms relating to Act 71 include Form G-81,
Phased-In Wholesale Deduction Worksheet; and Form
G-82, Certificate For Sales of Goods and Services WhichQualify For The Phased-In Wholesale Deduction. Form
G-81 has been developed to help calculate the amount of
the deduction to claim on the general excise tax return
since the Department is implementing the tax rate change
through a deduction from gross income. Form G-82 isused to certify that goods and/or services purchased will
be resold as required by Act 71. Forms G-81 and G-82
may be obtained at any district tax office, by mail throughthe Department’s 24-hour Forms Request Line, or via theInternet (see the last page for telephone numbers andaddresses).
More information relating to the general excise tax
pyramiding relief, including a chart showing the effectsof Act 71 on various transactions, may be obtained
through the Department’s website. 

Changes to 1999 Tax
Forms

H

awaii tax forms have been revised for 1999 toreflect recent tax law changes. The following
is a summary of some of the changes to the forms, newforms for 1999, and forms which are now obsolete.
See Changes to Forms, Page 3

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

Ray K. Kamikawa
Lynne Kuroda
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 and press 7700

Winter 1999

Hawaii Tax News

Changes to Forms(From Page 2)

Form N-15, Nonresident and Part-Year Resident Tax
Return• Act 253, Session Laws of Hawaii (SLH) 1999, revises
the method of calculating the Hawaii income tax for
nonresidents and part-year residents. A nonresident
will be taxed on income only from Hawaii sources. A
part-year resident will be taxed on income only from
Hawaii sources during the period of nonresidency andon total income (regardless of source) during theperiod of residency. The ratio of Hawaii adjusted
gross income to total adjusted gross income from all
sources is applied to determine the nonresident andpart-year resident’s exemption and standard
deduction amounts.
• A nonresident or part-year resident (for the period of
nonresidency) may not claim itemized deductions
which are tied to a specific investment, property, or
activity carried on outside Hawaii; or which results inincome which is not subject to taxation by Hawaii. A
new worksheet in the instruction booklet is used tocompute the Hawaii itemized deductions.
• In lieu of providing information as to worldwide
source income, nonresident taxpayers (including
nonresident alien taxpayers) and part-year resident
taxpayers may elect to file Form N-15 in one of thefollowing ways:(1) Nonresident taxpayers and part-year resident
taxpayers may elect to file Form N-15 at the highest
marginal tax rate for individual taxpayers. The highest
marginal tax rate will be applied to the nonresident or
part-year resident taxpayer’s Hawaii source income.
No deductions, exemptions, or credits shall beallowed. To make this election, attach a written
statement to Form N-15 stating that you are electing
to file Form N-15 at the highest marginal tax rate forindividuals.
(2) Nonresident taxpayers and part-year resident
taxpayers may elect to file Form N-15 without
claiming any standard deduction or personal
exemption amounts. Also, tax credits which are based
on total adjusted gross income from all sources may
not be claimed. To make this election, enter zero online 35, Ratio of Hawaii AGI to Total AGI.
Schedule X, Tax Credits For Hawaii Residents• In Part I, the food tax credit (which was repealed fortaxable years beginning after December 31, 1998) is
replaced with the new low-income refundable tax credit.
New Forms• Form G-81, Phased-In Wholesale Deduction
Worksheet - Use this worksheet to calculate theamount of the deduction to claim on the general excise
tax return.

Page 3• Form G-82, Certificate For Sales of Goods andServices Which Qualify For The Phased-In
Wholesale Deduction - Use this form to certify that
goods and/or services purchased will be resold as
required by Act 71, SLH 1999, relating to the general
excise tax pyramiding relief.
• Form N-318, Tax Credits for High-Technology Use this form to claim the high-technology business
investment tax credit.
Obsolete Forms• Form M-25, Monthly Report of Liquid Fuel Sales
Reported Without Tax Under the Fuel Tax Law(Chapter 243, HRS) Covering Sales to Agencies on
Military or Other Reservations, Not For Exclusive
Official Use of the United States• Form N-314, Hotel Remodeling Tax Credit• Form N-314A, Information Statement Concerning the
Hotel Remodeling Tax Credit Booklet A SupplementA

one-page supplemental insert to Booklet A,
Employer’s Tax Guide (Revised 1998) was
mailed out to all employers registered for Hawaii
withholding taxes in November. The supplement
provides information on the exemption from thewithholding of income taxes on the wages received by aqualifying minister or member of a religious order, andthe exclusion of nonresident employees of contractors
from qualifying for an income tax withholding
exemption. These withholding provisions were adopted
through Hawaii Administrative Rules during 1999 andare discussed in Department of Taxation Announcement
Nos. 99-14 and 99-28, respectively.
Booklet A was revised in 1998 to reflect the newwage withholding rates that will be in effect from January
1, 1999, through December 31, 2000. The tables
contained in Booklet A (Revised 1998) are still
applicable for tax year 2000.
Copies of the supplement may be obtained at any
district tax office, by mail through the Department’s
24-hour Forms Request Line, or via the Internet (see thelast page for telephone numbers and addresses). 

Order Your 1999 Tax
Information CD

Order forms for the 1999 Tax Information CD
are now available. Participants in the
December Year-End Workshop will automaticallySee 1999 Tax Information CD, Page 4

Page 4

Hawaii Tax News

1999 Tax
Information CD(From Page 3)

receive their CD via mail when it becomes available in
January. Others may obtain an order form from any
district tax office, by mail through the Department’s
24-hour Forms Request Line, or via the Internet (see thelast page for telephone numbers and addresses). The costof the CD is $12.50.
This year, past editions of certain publications suchas the Booklet A, Employer’s Tax Guide and annual
reports for prior years have been included for historicaland reference purposes eliminating the need to retain
earlier editions of the CD. It will also feature writable
fields for all 1999 Hawaii tax forms as well as those
Department of Labor and Industrial Relations forms,
Department of Commerce and Consumer Affairs forms,
and Department of Budget and Finance’s unclaimed
property forms included on the CD. Formatting andlinking between the tax statutes and the administrative
tax rules also have been improved.
Order your 1999 Tax Information CD now; you’resure to find it an invaluable resource! Problem Solving Days
Held on MauiThe Department of Taxation held a problem
solving day on September 28 and 29 in Wailuku,
Maui. A joint problem solving day with the Internal
Revenue Service was held in Lahaina, Maui on
November 2. This was the eighth joint problem solving
day in Hawaii.
The Department assisted taxpayers in the filing of net
income tax returns and amended tax returns, and worked
towards resolving their tax matters. Everyone who camein was very appreciative of having these days set aside
for the resolution of their problems. Year-End Workshops

T

he Department of Taxation held its year-end
workshop on December 7 at the Ala Moana
Hotel. Over 300 people attended the full day workshop
which featured presentations on the Department’s
Integrated Tax Information Management System
Project, website enhancements, 1999 tax forms
revisions, introduction of the Department’s Team
T.E.A.C.H. project, residency issues for individual

Winter 1999

taxpayers, 1999 tax information CD, high-technology
tax issues, pyramiding relief provisions, and exported
services exemption. The $50 registration fee included aContinental breakfast, workshop materials, and theDepartment’s 1999 Tax Information CD which will bemailed to workshop registrants in January. Year-end
workshops were also held throughout December on
Maui, Hawaii, and Kauai. 

Use of a PTIN on StateTax ReturnsIn response to concerns that a tax return preparer’ssocial security number (SSN) could be used
inappropriately by those with access to prepared returns,
the IRS Restructuring and Reform Act of 1998
authorized the use of alternatives to social security
numbers to identify tax return preparers. Preparers may
request a Preparer Identification Number (PTIN) fromthe IRS to use as the identifier required when preparing
returns for compensation in lieu of a SSN. The format
for the PTIN will be P followed by 8 digits (no dashes).
This is an optional number, and preparers may stillchoose to use their SSN as the identifier.
For Hawaii tax purposes, tax return preparers will
have the option of providing their SSN or the PTIN
issued by the IRS on returns they prepare beginning
January 1, 2000. 

Department Ready For
Y2KT

he Department should be able to enter the newyear Y2K problem free. All of our mainframe
computer application systems have been remediated andtested, and all necessary commercial hardware andsoftware upgrades have been completed.
In the event of an unforseen problem, we havedeveloped contingency plans that have been reviewed by
the Information and Communication Services Division(ICSD) of the Department of Accounting and General
Services (DAGS). Special year-end computer jobs also
are being scheduled to ensure that hard copies of essential
information is available should a system go down forwhatever reason so that basic services to taxpayers canbe provided.
All Y2K inquiries received have been addressed andresponded to. We look forward to a trouble-free entry
into the new year! Winter 1999

Hawaii Tax NewsNew Computer SystemIn the Fall issue of the Hawaii Tax News, weannounced the signing of the contract with
American Management Systems, Inc. (AMS) for theState’s first performance-based information technology
contract. Since then, work has begun in earnest to
develop the Department’s new, integrated, tax
information system.
Under the leadership of Deputy Director Marie
Okamura and AMS Vice President Gary Musgrove, theAMS and Department of Taxation project team has beenworking hard on an overall blueprint for the 5-year
project. At the same time, however, plans to automate thegeneral excise, use, withholding, and transient
accommodations tax billing process for new accountreferrals are being developed for implementation next
spring, and plans to fully automate all accounts for those
tax types as well as all outstanding income tax accounts
are being developed for implementation late next fall.
Once fully implemented, these initial phases willaccomplish a number of important goals. First, theDepartment will be able to notify taxpayers of theirdelinquencies sooner resulting in lower penalty andinterest charges. Second, notices will both be moreaccurate and more understandable to taxpayers. Third,
Collections staff will be freed from the manual
processing of billing notices and thus be more accessible
to taxpayers who need individual assistance. Finally,
billing information will be readily accessible by
Department staff on all islands so that taxpayers canobtain information about their accounts from any district
tax office.
Over the next five years, look to the Hawaii Tax Newsfor periodic updates as the project progresses. Though
we’ll be "under construction" and may not always be able
to provide a high level of services on demand, we areworking hard to ensure that our level of services remains
high, and that the final result is a fully integrated
computer system that allows us to provide quality
customer service to you. 

WebsiteEnhancementsIf you haven’t visited our website recently, you
should. It has been redesigned and improved tobetter serve your needs. For example, the site is now
searchable and includes the Hawaii Administrative Tax
Rules. In addition, you may register for automatic
notification via e-mail of any updates to our website.
Visit us soon! 

Page 5

Recently Issued Tax
Publications

T

he following is a list of the publications issued
by the Department of Taxation from June 1999
through December 1999. Copies of 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 fromany district tax office or by mail through the
Department’s Forms Request Line. Addresses andtelephone numbers are provided on the last page of thisnewsletter.
Copies of Administrative Rules are available for a fee(10¢ per copied page plus postage). To request a copy,
mail your request to the Department of Taxation,
Attention: Rules Office, P. O. Box 259, Honolulu,
Hawaii, 96809-0259. Include your name, address, andtelephone number; identify the rule (e.g., "nonresident
employees of contractors"); and provide a check payable
to the "Director of Finance" in the amount specified
below. The rules listed below also are available at the
Department’s website.
Section 18-235-61-03(b), HAR - Relating to the
exemption from the withholding of income taxes on thewages received by a qualifying minister or member of areligious order. ($1.55)
Section 18-235-61-04(b), HAR - Excludes
nonresident employees of contractors from qualifying
for an income tax withholding exemption when thecontractor is performing work on a construction project
located in Hawaii. (No fee.)
TIR No. 99-2 - Announces that the Department isadministering the 100% dividends received deduction
provided by section 235-7(c), HRS, without regard to thediscriminatory requirements.
TIR No. 99-3 - Clarifies that taxpayers subject to thefranchise tax may claim the Hawaii low-income housing
tax credit in the taxable year for which the imposition is
made.
TIR No. 99-4 - Provides guidance on the taxation ofmortgage loan companies, including mortgage loan
companies organized as passthrough entities and sole
proprietorships, under Hawaii’s tax laws.
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.
Announcement No. 99-13 - Announces the increasein the Kauai County fuel tax rate, effective July 1, 1999.
Announcement No. 99-14 - Announces the adoption
See Recent Publications, Page 6

Page 6

Hawaii Tax News

Recent Publications(From Page 5)of Hawaii Administrative Rules, relating to the
exemption from the withholding of income taxes on thewages received by a qualifying minister or member of areligious order.
Announcement No. 99-15 - Provides information on
Act 68, SLH 1999, which allows a collection agency torecover its collection fee from the taxpayer when it
collects delinquent taxes under a contract with the
Department of Taxation.
Announcement No. 99-16 - Provides information on
Act 165, SLH 1999, which tightens up the definition of"related entities" for purposes of the general excise tax,
expands the definition of "related entities" to include
limited liability partnerships and limited liability
companies, and clarifies the "business unit" language inthe prior law by replacing it with the more familiar"unitary business" terminology.
Announcement No. 99-17 - Provides information on
Act 70, SLH 1999, which exempts services orcontracting exported outside Hawaii from the general
excise tax and imposes a new use tax on imported
services.
Announcement No. 99-18 - Provides information on
Act 71, SLH 1999, which reduces the effect of the"pyramiding" of the general excise tax on service
transactions by treating those transactions similar to thewholesale sales of tangible personal property.
Announcement No. 99-19 - Provides information on
Act 173, SLH 1999, which clarifies that (1) sales topersons licensed under the general excise tax law ofsingle-serving packets of condiments furnished tocustomers are subject to the .5% wholesale rate, (2) salesof tangible personal property to persons licensed under
the general excise tax law who incorporate or process theproperty into a finished product and resell the property
at retail (including disposable containers, packages, orwrappers to hold food) are subject to the .5% wholesalerate, and (3) the .5% intermediary services rate isapplicable to professional services.
Announcement No. 99-20 - Provides information on
Act 223, SLH 1999, which increases the rental motor
vehicle surcharge tax from $2 to $3 for the period beginning
September 1, 1999, and ending August 31, 2007.
Announcement No. 99-21 - Provides information on
Act 253, SLH 1999, which revises the method of
calculating the Hawaii income tax for nonresidents andpart-year residents. A nonresident will be taxed on
income only from Hawaii sources. A part-year resident
will be taxed on income only from Hawaii sources during
the period of nonresidency and on total income(regardless of source) during the period of residency. The
ratio of Hawaii adjusted gross income to total adjusted

Winter 1999

gross income from all sources is applied to determine thenonresident and part-year resident’s exemption andstandard deduction amounts.
Announcement No. 99-22 - Provides information on
Act 270, SLH 1999, which adopts the federal deduction
for long-term care costs and insurance contract
premiums.
Announcement No. 99-23 - Provides information on
Act 295, SLH 1999, which exempts from the conveyancetax transfers of real property in connection with a merger
or consolidation, or in connection with the dissolution ofa limited partnership to a corporate general partner.
Announcement No. 99-24 - Provides information on
Act 303, SLH 1999, which allows a court to consider
probation as a sentencing option for tax offenses.
Announcement No. 99-25 - Announces the
Department’s position that the general excise tax
subcontract deduction is allowed for amounts paid to a
specialty contractor who is not licensed by the Hawaii
Department of Commerce and Consumer Affairs underchapter 444, HRS, provided that the specialty contractor
is a "contractor" as defined in section 237-6, HRS.
Announcement No. 99-26 - Provides information on
Act 178, SLH 1999, which contains several tax
incentives to support the development of hightechnology industries in Hawaii.
Announcement No. 99-27 - Informs taxpayers thatthe qualified improvement tax credit for qualified resort
and general facilities provided by Act 306, SLH 1999,
will not be allowed.
Announcement No. 99-28 - Announces the adoptionof Hawaii Administrative Rules which exclude
nonresident employees of contractors from qualifying
for an income tax withholding exemption when thecontractor is performing work on a construction project
located in Hawaii.
Tax Facts No. 99-1 - Provides information on
Hawaii’s fuel tax.
Tax Facts No. 99-2 - Provides a description of someof the tax incentives and tax breaks that are available tobusinesses in Hawaii as of August 1999.
Tax Facts No. 99-3 - Provides information on theapplication of the general excise tax and use tax toconstruction contractors, and addresses the changes in
the laws passed by the 1999 Legislature. 

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.
See Pending Publications, Page 7

Winter 1999

Hawaii Tax News

Pending Publications(From Page 6)

Administration of Taxes• Application of penalties and interest and the waiver ofpenalties and interest - sections 231-3 and 231-39, HRS.
Income Tax Law• Application of the income tax to amounts from apension plan that are "rolled over" into an Individual
Retirement Account - section 235-7, HRS. (Grant
Tanimoto, 587-1569)• Application of the business entity classification rules
under the check the box regulations to the Hawaii
income tax. (Johnson Lau, 587-1562)• Filing of composite returns.
• Application of the income tax to nonresident
taxpayers - section 235-2.4(a), 235-4.3, 235-5, HRS.
General Excise Tax Law• Application of the general excise tax to prepaid
telephone calling cards - section 237-13, HRS.
• Use of resale certificates - section 237-13, HRS.
• Application of the general excise tax to the sale of gift
certificates - section 237-13, HRS. (Grant Tanimoto,587-1569)• Application of the general excise tax to employee
leasing companies - section 237-13, HRS. (Johnson
Lau, 587-1562)

Page 7• Application of the general excise tax toreimbursements - section 237-20, HRS. (Grant
Tanimoto, 587-1569)• Application of the general excise tax to scientificcontracts - section 237-26, HRS. (Johnson Lau,587-1562)• Application of the business entity classification rules
under the check the box regulations to the Hawaii
general excise tax. (Johnson Lau, 587-1562)• Application of the general excise tax to sales ofcomputer software. (Marshall Dimond, 587-1533)• General excise tax licensing and tax clearance
requirements of S corporations. (Johnson Lau,587-1562)• Application of the general excise tax to eating anddrinking retailers.
Use Tax Law• Temporary use exemption for property - section
238-1, HRS. (Marshall Dimond, 587-1533)• Application of the use tax to sales to the federal
government. (Marshall Dimond, 587-1533)
Conveyance Tax Law• Application of the conveyance tax. (MarshallDimond, 587-1533)
Miscellaneous• State business tax credits and general excise
exemption for business located in enterprise zones chapter 209E, HRS. 

First 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 2000$ 278.0
14.1
372.4
40.8
163.9
$ 869.2

FY 1999$ 283.4
15.5
360.3
31.2
172.5
$ 862.9

Amount$ -5.4
-1.4
12.1
9.6
-8.6
$ 6.3

Percent
-1.9%
-9.0%
3.4%
30.8%
-5.0%
0.7%

General Fund Revenues$ 736.0$ 739.0$ -3.0-0.4%

While individual and corporate income tax collections for the first quarter of fiscal year 2000 dropped from the first quarterof fiscal year 1999, significant increases in general excise and transient accommodation taxes (TAT) resulted in an overall$ 6.3 million increase (0.7%). Withholding taxes for individuals dropped by $ 7.0 million as a result of new lower individual
income tax rates. A 3.0% increase in visitor arrivals, a TAT rate increase from 6% to 7.25%, and the imposition of the
TAT on the occupant of a time share unit contributed to the growth in TAT taxes as well as general excise taxes. Of the$ 869.2 million of taxes collected in the first quarter of this fiscal year, $ 736.0 million was deposited into the state generalfund. The $ 3.0 million drop in general fund revenues was partly due to lower revenues from miscellaneous taxes. 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