HI SR81

Requests the State Auditor to conduct a financial audit of the Department of Taxation to assess staffing and funding needs for administering the county surcharge on state general excise and use taxes.

Directs the audit to determine the Department's actual staffing and operational funding requirements for administering the county surcharge established under Act 247, Session Laws of Hawaii 2005.

Requires accounting of all funds retained by the state (10% of county surcharge proceeds) that have been allocated to the Department of Taxation since the surcharge's inception.

Mandates a recommendation for the appropriate amount the state should retain from county surcharge proceeds to accurately reimburse administration costs, noting the state received $144 million while only allocating staffing costs of approximately $700,000-$750,000 as of 2008-2009.

Requires the Auditor to submit findings and recommendations to the Legislature no later than 20 days before the start of the 2017 Regular Session.