Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 231 - ADMINISTRATION OF TAXES › Section 18-231-9.9-02 - Payment of taxes through electronic funds transfer; definitions

Current through June, 2024
As used in sections
				18-231-9.9-01 to
				18-231-9.9-11:
"ACH" or "Automated Clearing House" means any federal reserve
				bank, or an organization established by agreement with the National Automated
				Clearing House Association, which operates as a clearing house for transmitting
				or receiving entries between banks or bank accounts, and which authorizes an
				electronic transfer of funds between the banks or bank accounts.
"ACH credit" means a transaction in which the taxpayer,
				through its own bank, originates an ACH transaction crediting the department's
				bank account and debiting the taxpayer's bank account for the amount of a tax
				payment.
"ACH debit" means a transaction in which the department,
				through its designated depository bank, originates an ACH transaction debiting
				the taxpayer's bank account and crediting the department's bank account for the
				amount of a tax payment.
"Addenda record" means that information required by the
				department in an ACH credit transfer or wire transfer, in approved electronic
				format. The approved electronic format is the TXP Banking Convention, used in
				the free form field of the National Automated Clearing House Association
				(NACHA) CCD+ entry.
"Bank" includes any financial institution described in section
				241-1, HRS, that
				accepts deposits.
"Call-in day" means the day on which a taxpayer communicates
				payment information to the Data Collection Center.
"Call-in period" means the time interval specified by the Data
				Collection Center in each call-in day during which EFT payment information
				received by the Data Collection Center is processed for transactions occurring
				on the next business day.
"Data Collection Center" means the unit within the department,
				or a third party vendor under contract with the department or its designated
				bank, which collects and processes EFT payment information from
				taxpayers.
"Department" means the department of taxation.
"Due date" means the date on or before which a payment is
				required to be made by a taxpayer under a tax law of this state.
"Electronic Funds Transfer" or "EFT" means any transfer of
				funds initiated through an electronic terminal, telephone instrument, computer,
				magnetic tape, or other means approved by the department, so as to order,
				instruct, or authorize a financial institution to debit or credit an account
				using the methods specified in these rules. EFT does not include transactions
				originated by checks, drafts, or similar paper instruments.
"Payment information" means the data which the department
				requires of a taxpayer making an EFT payment and which must be communicated to
				the Data Collection Center.
"Payor" means the taxpayer.
"Payor information number" means a confidential code assigned
				to each taxpayer which uniquely identifies the payor and allows the payor to
				communicate payment information to the Data Collection Center.
"Tax type" means a tax administered by the department which is
				subject to EFT. The tax types for which taxpayers will be required to pay by
				EFT are as follows:
(1) Net income tax under chapter
				235, HRS, which includes estimated
				tax;
(2) Withholding tax on wages under chapter
				235, HRS;
(3) General excise and use taxes under chapters
				237 and
				238,
				HRS;
(4) Transient accommodations tax under chapter 237D,
				HRS;
(5) Public service company tax under chapter
				239, HRS;
(6) Franchise tax under chapter
				241, HRS;
(7) Fuel tax under chapter 243, HRS;
(8) Liquor tax under chapter 244D, HRS;
(9) Tobacco tax under chapter
				245, HRS; and
(10) Rental motor vehicle and tour vehicle surcharge tax under
				chapter 251, HRS.
"Taxpayer" includes an individual, a trust, estate,
				partnership, association, company, or corporation; provided that an affiliated
				group of domestic corporations filing a consolidated return pursuant to section
				235-92,
				HRS, shall be considered one taxpayer.
"Threshold amount" means the amount a payment made by a
				taxpayer for a tax type must equal or exceed for the taxpayer to be required to
				use EFT when making payments for the tax type. The threshold amount is set
				forth in section
				18-231-9.9-03(a).
"Trace number" means the verification code provided by the
				Data Collection Center upon receipt of all payment information from the payor
				which uniquely identifies the completed communication of payment
				information.