HI HB1412

Changes Department of Taxation authority from allowing to requiring electronic filing of tax returns, applications, reports, and other documents under Title 14, with exceptions for reasonable cause as determined by administrative rules.

Imposes a 2% penalty on persons who fail to file electronically when required by the department.

Lowers the electronic funds transfer threshold from $100,000 to $40,000 in annual tax liability, and clarifies the threshold applies per tax type rather than in aggregate.

Requires persons subject to federal electronic filing requirements to also electronically file and remit state taxes to Hawaii.

Takes effect upon approval, with the electronic funds transfer threshold changes applying to taxable years beginning after December 31, 2017.