HI SCR112

Requests the State Auditor to conduct a financial audit of the Department of Taxation regarding collection and payment of the county surcharge on state tax to the City and County of Honolulu.

County surcharge is one-half of one percent and funds the Honolulu Authority for Rapid Transportation (HART) rail transit project; HART received only $68,178,842 in the first two quarters of fiscal year 2013 instead of the expected $100,231,516.

Audit must review each fiscal year since implementation of the county surcharge, including total revenue collected, adjustments, monthly tax liability, timeliness of collections and payments, and identify process weaknesses.

Auditor must report findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the 2016 Regular Session convenes.

Certified copies to be transmitted to the Auditor, Director of Taxation, Mayor of Honolulu, and HART Board of Directors.