Tax System Modernization Program

Flower shaped diagram listing elements that impact the following five areas: hardware and networking infrastructure; integrated tax system; data warehouse, analytics, and business intelligence; e-filing and customer support; and business process reengineering and organizational change management.Timeline showing five rollouts with completion dates in December 2015, August 2016, August 2017, November 2018, and July 2019.Diagram illustrating that efficient processing, quality taxpayer service, increased tax compliance, and effective collections lead to more revenue for State programs (e.g., conservation, education, ecomomic growth, governance, health, infrastructure, justice, safety, transportation).

The mission of the Department of Taxation is to administer the tax laws of the State of Hawaii in a consistent, uniform, and fair manner. The people of Hawaii rely on the state government to provide necessary services that protect their safety, well-being, and rights. Each of Hawaii’s citizens helps the government meet the needs of our communities by paying taxes.

The Department is undergoing a major modernization effort to transform its operations and meet the rising expectations of today’s taxpayers. The Tax System Modernization Program is a collection of projects slated for completion by 2020. Almost every technical system used by the Department will be upgraded or replaced, especially old systems that no longer meet Hawaii’s needs. While the process of putting in new technology might lead to temporary performance hits, new tax systems will ultimately result in better taxpayer service and improved enforcement of tax laws.

Even though these projects will take some time to finish, taxpayers will not have to wait long to start seeing benefits. New online features will be available each year as the new tax system is built to support additional tax types. Operational processes will also improve over time, leading to faster processing and better customer service. The Department will also have new tools to help protect against fraud and identify when businesses and individuals are not properly filing and paying taxes.

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