STAND. COM. REP. NO.  601

 

Honolulu, Hawaii

                , 2009

 

RE:   H.B. No. 1242

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Sir:

 

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 1242, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to maximize the tax revenues collected by the State by requiring the Department of Taxation to establish a taxpayer noncompliance identification program.

 

     IBM and a concerned individual testified in support of this bill.  The Department of Taxation and State of New York Department of Taxation and Finance offered comments.

 

     Your Committee finds that for the past seven years, the State of New York has successfully used a taxpayer noncompliance identification program to address its tax gap.  In mid-2008, the State of New York's tax revenue savings were estimated to be at $600,000,000.

 

     Your Committee considers the program in this bill to be of the highest priority for the State of Hawaii.  Establishment of the program, for which the necessary infrastructure already exists, would be funded by moneys captured through the program, and would allow the State to address its tax gap using a mechanism that does not violate civil rights.

 

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1242, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

 

 

 

 

____________________________

ANGUS L.K. MCKELVEY, Chair