S.R. NO. 63 Summary

• 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 (0.5%) to the City and County of Honolulu.

• Notes that HART received only $68,178,842 in county surcharge payments during the first two quarters of fiscal year 2013, significantly below the expected $100,231,516.

• Requires the audit to review each fiscal year since the county surcharge implementation, including monthly revenue collected, adjustments, tax liability, timeliness of collections and payments, and identify process weaknesses.

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

• Requires certified copies be sent to the Auditor, Director of Taxation, Mayor of Honolulu, and the Honolulu Authority for Rapid Transportation Board of Directors.