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

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.