STAND. COM. REP. NO. 1140

Honolulu, Hawaii

, 2005

RE: H.B. No. 487

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Intergovernmental Affairs, to which was referred H.B. No. 487, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to allow the Director of Finance of each county to access state taxpayer information relating to income tax and transient accommodations tax for residents filing within the county's jurisdiction.

Your Committee received testimony in support of this measure from the Department of Taxation, Maui Department of Finance, and Hawaii Association of Realtors. Comments were received from the Tax Foundation of Hawaii.

Your Committee finds that allowing the counties to obtain information about taxpayers within their jurisdiction is an important resource to strengthen county tax collection efforts. The counties are unable to audit their own tax exemptions and credits for residents filing within their own county. With access to state tax information, such as taxpayers filing as residents in a particular county, the counties would be able to follow up on discrepancies with their property tax exemptions and credits.

Your Committee has amended this measure by substituting the contents of S.B. No. 1685, S.D. 2, which is drafted in the proper drafting format and style.

As affirmed by the record of votes of the members of your Committee on Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 487, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 487, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Intergovernmental Affairs,

____________________________

DAVID Y. IGE, Chair