HI SB626

Requires all telecommunications carriers operating in Hawaii to use generally accepted accounting principles (GAAP) in calculating tax liabilities to the state and counties, rather than outdated Federal Communications Commission accounting rules.

Mandates the Department of Taxation to audit each telecommunications carrier operating in Hawaii to identify past underpayments of gross receipts taxes and property taxes dating back to January 1, 1990.

Requires audits to begin no later than October 1, 2021, and be completed by September 30, 2025.

Requires the Department of Taxation to submit a preliminary audit report to the legislature no later than twenty days before the 2023 regular session and a final report with recommendations no later than twenty days before the 2026 regular session.

Addresses carriers' practice of undercounting fiber and copper assets by only reporting "active" cables while ignoring dark fiber or reserve copper for tax valuation purposes.