STAND. COM. REP. 1327

Honolulu, Hawaii

, 2003

RE: S.B. No. 1396

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1396 entitled:

"A BILL FOR AN ACT RELATING TO THE ADMINISTRATION OF TAXES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Correct statutory language related to the payment threshold for the estimated tax underpayment penalty, which was inadvertently amended to regressively affect taxpayers with an adjusted gross income of $50,000 or less;

(2) Conform state law to the Internal Revenue Code (IRC) by lowering the minimum estimated tax payment to 100 percent for prior year returns; and

(3) Correct ambiguous language relating to the Department of of Taxation's (DOTAX's) authority to grant extensions for filing tax returns which is in conflict with the IRC.

DOTAX submitted testimony in support of this bill. Tax Foundation of Hawaii submitted comments on this bill.

 

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1396 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

____________________________

DWIGHT Y. TAKAMINE, Chair