But only ones hurt by terrorism-related downturn need apply Governor Ben Cayetano announced in late October that state businesses suffering from an economic downtown since Sept. 11 may be eligible to defer their general excise tax payments. “Many local businesses
But only ones hurt by terrorism-related downturn need apply
Governor Ben Cayetano announced in late October that state businesses suffering from an economic downtown since Sept. 11 may be eligible to defer their general excise tax payments.
“Many local businesses were hurt as the terrorist attacks took a toll on Hawai’i’s tourism industry,” and deferred payments is a way for the state “to help,” Cayetano said.
Lihu’e small-businessman Mel Rapozo, who owns M&P Legal Support Services, agreed with the governor.
“I think that any break for the small-business person is good right now. The excise tax is a burden. And many small businesses are very reliant on their cash flow, not like big corporations. This kind of thing can definitely help the small-businessman who is more dependent on cash flow,” Rapozo said.
The state’s tax department is offering the general excise tax deferred payment plan with three options for businesses that are eligible by being either sole proprietors or single-member limited liability companies (LLCs) that report business profit or loss on Schedule C of tax form 1040.
The state’s deferment program currently only applies to the tax reporting periods from September 2001 through December 2001.
To qualify, the sole proprietor or single-member LLC must have:
– Suffered gross revenue declines of at least 25 percent since Sept. 11.
– Filed returns for all tax types and paid all taxes by due dates including annual returns.
– Continue to file returns for all tax types and pay all taxes by required due dates.
Additional information is available from tax officials at 1-800-222-3239. The Kaua’i district tax office number is t 274-3456.
Staff writer Dennis Wilken can be reached at 245-3681 (ext. 252) and mailto:dwilken@pulitzer.net
