Tuesday, November 12, 2024
Hawai'i Free Press

Current Articles | Archives

Saturday, September 15, 2012
DoTax Issues 12 Tax Announcements
By News Release @ 10:27 PM :: 7236 Views :: Energy, Environment

Message from the Department of Taxation
September 10, 2012

Recent news stories about the renewable energy tax credit have prompted several inquiries to the Department of Taxation. Here are the pertinent facts:
  Right now, there is no change in the tax law or its application. The new temporary administrative rules have NOT been issued yet.
  When the Department issues the new rules, they will be effective for systems installed and placed into service effective January 1, 2013.
  The reason for the new administrative rules is to provide clarity and fairness to all taxpayers. During the last legislative session, concerns about the renewable energy tax credit were raised by legislators and taxpayers. Since there was no change in the statute, the Department is using its authority to adopt administrative rules to address the concerns.
Tax Announcements 2012-01 through 2012-12
August 15, 2012
Tax Announcement 2012-01 - Composite Filing of Forms N-342 and/or N-342A for Taxpayers Claiming the Renewable Energy Technologies Income Tax Credit, HRS § 235-12.5 for 10 or More Systems
   The Renewable Energy Technologies Income Tax Credit ("Renewable Energy Credit") provided by § 235-12.5, Hawaii Revised Statutes ("HRS"), is claimed by filing a separate Form N-342 for each eligible system for which the taxpayer is claiming the Renewable Energy Credit.
Tax Announcement 2012-02 - Act 067, Session Laws of Hawaii 2012, Relating to the Tax Lien and Encumbrance Record
   Act 067 allows the Department of Taxation (Department), as well as other governmental unit, to record a lien against any vehicle owned by a taxpayer for any amounts owed. Unless the amount so recorded is paid, the taxpayer will be unable to renew, register, or transfer ownership of the vehicle.
Tax Announcement 2012-03 - Act 220, Session Laws of Hawaii 2012, Relating to Taxation
   Act 220 has two major components. The first establishes a revised Estate and Generation-Skipping Transfer Tax as a new chapter within the Hawaii Revised Statutes, and is effective for decedents dying or taxable transfers occurring after January 25, 2012. The second component extends the provisions of Act 166, Session Laws of Hawaii 2007, which exempts from taxation the capital gains realized on the sale of the fee interest in leasehold condominium units when sold to the association of apartment owners or residential cooperative corporations, (which had been scheduled to sunset on January 1, 2013) until January 1, 2018.
Tax Announcement 2012-04 - Act 179, Session Laws of Hawaii 2012, Relating to Conformity of Hawaii Income Tax Law to the Internal Revenue Code and Act 184, Session Laws of Hawaii 2012, Relating to Taxation
   Section 2 of Act 179 amends section 235-2.3(a), HRS, to conform the Hawaii Income Tax Law to the operative IRC sections of Subtitle A, Chapter 1, amended as of December 31, 2011. Generally, Subtitle A, Chapter 1, refers to sections 1 through 1400T, IRC.
   A summary of the relevant federal laws that were enacted in 2011 and their impact on Hawaii Income Tax Law follows: ....
Tax Announcement 2012-05 - Act 180, Session Laws of Hawaii 2012, Relating to Tax Clearance Fees
   Act 180 allows the Department of Taxation to impose a $20 fee for a tax clearance application and a $5 fee to obtain a certified copy of a tax clearance for requests for tax clearances and requests for certified copies of tax clearances received on or after July 1, 2012.
   The Department has decided that it will not implement these new fees until further notice.
Tax Announcement 2012-06 - Act 188, Session Laws of Hawaii 2012, Relating to Taxation
   Act 188 extends the sunset date for the special fuel tax rate applied to naphtha fuel sold for use in a power-generating facility. The sunset date is extended to December 31, 2015.
Tax Announcement 2012-07 - Act 182, Session Laws of Hawaii 2012, Relating to Foreclosures
   Act 182 implements the recommendations of the mortgage foreclosure task force created by Act 162, Session Laws of Hawaii 2010. The Department notes that several procedures in the foreclosure process described in Act 182 require service upon the Director of Taxation. The Department will accept service by certified mail in all situations described in Act 182 in which service by mail is permissible.
Tax Announcement 2012-08 - Act 165, Session Laws of Hawaii 2012, Relating to Interisland Transmission Cable Systems
   This Act makes several amendments pertaining to income received by an electric utility company in the form of a "cable surcharge." Specifically, Act 165 amends Section 235-7, Hawaii Revised Statutes, (HRS) to exclude such amounts from a calculation of gross income, adjusted gross income, and taxable income.
Tax Announcement 2012-09 - Act 219, Session Laws of Hawaii 2012, Relating to Taxation
   Act 219 mandates that "nonprofit organizations" be given written notice of noncompliance with § 237-9.3, Hawaii Revised Statutes ("HRS"). Upon receipt of such notice, the "nonprofit organization" has 90 days to become compliant before the denial of general excise tax benefits. Act 219 is effective July 1, 2012.
Tax Announcement 2012-10 - Act 185, Session Laws of Hawaii 2012, Relating to Taxation
   Act 185 prevents the 20% penalty for erroneous claims for refund or credit under § 231-36.8, HRS, from being imposed where a 20% penalty has already been imposed for substantial understatements or misstatements under § 231-36.6, HRS, for the same tax underpayment.
Tax Announcement 2012-11 - Rental Motor Vehicle Surcharge Tax Rate after June 30, 2012
   On July 10, 2012, the Governor vetoed SB 2946. Therefore, effective July 1, 2012, the RV tax rate has reverted back to $3 per day or portion of a day.
   In the event a taxpayer has separately stated and visibly passed on the tax at the $7.50 rate for any rental motor vehicle day or portion of a day occurring after June 30, 2012, the taxpayer should refund the excess $4.50 per day to its client and only remit to the Department $3 per day or portion of a day occurring after June 30, 2012.
Tax Announcement 2012-12 - Act 326, Session Laws of Hawaii 2012, Relating to Taxation
   The Act requires operators of transient accommodations to do the following:
 *  Designate a local contact residing on the same island as the transient accommodation.
 *  Provide the local contact's contact information to any entity with covenants, bylaws or administrative provisions operational with respect to the property on which the transient accommodation exists (e.g., an association of apartment owners). Such information must be updated within 60 days of any change.
 *  Include the local contact's name and phone number in any contract or written rental agreement.
 *  Provide on a website or by online link and display in all advertisements and solicitations on websites the registration identification number issued under HRS § 237D-4. This registration identification number is also sometimes referred to as the TAT tax license number. Please also note that for some taxpayers the TAT tax license number may contain a different suffix from the taxpayer's GET tax license number.
Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii