Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 237 - GENERAL EXCISE TAX LAW
Subchapter 3 - RETURNS AND PAYMENTS
Section 18-237-30 - Monthly, quarterly, or semiannual returns

Universal Citation: HI Admin Rules 18-237-30

Current through August, 2024

(a) These rules also apply to section 238-5, HRS.

(b) The director may permit a taxpayer to file tax returns and make payments of the tax on a quarterly or semiannual basis during a calendar or fiscal year if the director is satisfied that:

(1) granting this permission will not unduly jeopardize the collection of the taxes due, and

(2) the taxpayer's total general excise tax liability for the calendar or fiscal year will not exceed $2,000 for quarterly returns, or $1,000 for semiannual returns.

(c) The director also may permit a taxpayer to make monthly payments based on estimated quarterly or semiannual liability, where the payments are to be made on or before the last day of the calendar month following the month in which they accrue, provided the taxpayer files a reconciliation return at the end of each quarter or six-month period during the calendar or fiscal year. Taxpayers shall apply for permission to make monthly payments of general excise tax based on estimated quarterly or semiannual liability on forms prescribed by the department.

(d) If a taxpayer's request under subsection (b) or (c) is granted, the director shall inform the taxpayer of the effective date. If the request is denied, the director shall inform the taxpayer of the reasons for denial.

(e) A taxpayer may file use tax returns and make payments of the tax on a quarterly or semiannual basis during a calendar or fiscal year if the taxpayer has permission to file general excise tax returns on a quarterly or semiannual basis pursuant to subsection (b).

(f) A taxpayer may make monthly payments of use tax based on estimated quarterly or semiannual liability with a reconciliation return at the end of each quarter or six-month period during the calendar or fiscal year if the taxpayer has permission to make monthly payments of general excise tax based on estimated quarterly or semiannual liability pursuant to subsection (c).

(g) All applications, returns, or payments shall be filed with or sent to the office of the taxation district in which the privilege upon which the tax accrued is exercised. Where the privilege is exercised in more than one taxation district, the applications, returns, or payments shall be filed with or sent to the office of the first taxation district.

The applications and returns shall be on forms prescribed by the department. The department may refuse to accept any incomplete application or return.

(h) A taxpayer that has temporarily ceased to conduct business or has determined that no tax is owed for that month, quarter, or six-month period, as the case may be, shall nevertheless file the appropriate periodic return for that period, unless inactive status has been granted under section 18-231-3-14.16(c).

(i) The director may revoke the permission given under subsection (b) or (c) at any time if:

(1) A taxpayer who has been granted permission to file returns and make payments on a quarterly or semiannual basis during the calendar or fiscal year becomes delinquent in either filing the returns or the payment of taxes due;

(2) A taxpayer who has been granted permission to make monthly payments based on estimated quarterly or semiannual liability and to file a reconciliation return at the end of each quarter or six-month period during the calendar or fiscal year becomes delinquent in either making monthly payments or filing reconciliation returns;

(3) The director determines that the taxpayer's estimated quarterly or semiannual liability has been unreasonably underestimated, for example, where less than sixty percent of the actual tax liability for a quarter is paid in the first two months of that quarter and the underestimation was not due to seasonal activities or the like;

(4) The director determines that the taxpayer plans to depart quickly from the State, is disposing of or concealing assets, or is doing any other act tending to prejudice or jeopardize the proper administration of chapters 237 and 238, HRS, including the assessment or collection of a deficiency, in which case the director also may immediately assess, to the extent not previously assessed, the taxes imposed by chapters 237 and 238, HRS; or

(5) The taxpayer's total tax liability for the calendar or fiscal year exceeds $1,000 for semiannual returns or $2,000 for quarterly returns.

Upon revocation under paragraphs (1) to (5), the taxpayer shall file a return of the installment of the tax for which the taxpayer is liable on or before the last day of the calendar month following the month in which the determination is made and transmit the return, together with a remittance for the amount of the tax, to the office of the appropriate taxation district. The taxpayer also shall file returns for each month thereafter unless permission is later granted to the taxpayer under subsection (b) or (c).

(j) In the event of any change of ownership or other transfer of business of a taxpayer who has been granted permission to make quarterly or semiannual returns and payments or to make monthly payments based on an estimated quarterly or semiannual liability and to file a reconciliation return at the end of each quarter or six-month period during the calendar or fiscal year, the taxpayer shall immediately notify the director of such change or transfer, and the permission previously granted to the taxpayer under subsection (b) or (c) shall be automatically revoked. Upon revocation, the taxpayer shall file a return of the installment of the tax for which the taxpayer is liable on or before the last day of the calendar month following the month in which the change of ownership or other transfer of business took place and transmit the return, together with a remittance for the amount of the tax, to the office of the appropriate taxation district. A transfer or change occurs, for example, if a sole proprietorship is changed to a partnership or corporation. The director may grant permission to the new owner or transferee to make quarterly or semiannual returns and payments or to make monthly payments based on estimated quarterly or semiannual liability, as provided for under subsections (b) and (c).

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