HI SB1289

Requires payors making non-wage payments of $600 or more annually for construction services to report aggregate payments to the Department of Taxation, including materials and equipment costs if included in construction service payments.

Payors claiming general excise tax deductions must report construction service providers' names and general excise taxpayer identification numbers; payors not claiming deductions must report federal employer identification numbers or social security numbers.

Annual reports must be filed by the 20th day of the fourth month following the close of the payor's taxable year, with civil penalties of $250 per month (maximum $3,000) for late or incomplete filings.

Willful failure to file reports is subject to additional penalties under section 231-35; the Director of Taxation may share reports with state or federal law enforcement agencies and may adopt necessary rules.

Effective July 1, 2030, for taxable years beginning after December 31, 2013; defines "construction services" as erection, excavation, installation, alteration, repair, improvement, demolition, or removal work on real property.