HI SB626

Require all telecommunications carriers operating in Hawaii to use generally accepted accounting principles (GAAP) when calculating tax liabilities to the State and counties, instead of outdated Federal Communications Commission accounting rules

Direct the Department of Taxation to conduct tax audits of each telecommunications carrier operating in Hawaii to identify any underpayments of gross receipts taxes and property taxes dating back to January 1, 1990

Establish audit timeline requiring the Department of Taxation to begin audits no later than October 1, 2021 and conclude by September 30, 2025

Require preliminary audit findings report to the legislature no later than twenty days before the 2023 regular session and final report with recommendations no later than twenty days before the 2026 regular session

Address carriers' practice of undercounting installed fiber and copper assets by only reporting active cables while ignoring dark fiber or reserve copper for valuation purposes