STAND. COM. REP. NO. 2976

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1948

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1948, 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 expedite the refund to taxpayers of tax overpayments.

 

     More specifically, this measure requires the Department of Taxation to provide refunds to taxpayers within ninety days of the earlier of the filing of the return or the due date of the tax.

 

     The measure also requires that, if the refund is not paid within the ninety-day period, interest will accrue to the taxpayer at the rate of one-third of one per cent per month until the refund and accrued interest is paid to the taxpayer.

 

     Testimony in opposition to this measure was submitted by the Department of Taxation.  The Tax Foundation of Hawaii submitted comments on the measure.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure will ensure that taxpayers who are entitled to a tax refund for the overpayment of taxes receive their refund in a timely manner.

 


     Your Committee has amended this measure by:

 

     (1)  Requiring the Department of Taxation to provide refunds to taxpayers within ninety days of the later of:

 

          (A)  The due date of the tax return; or

 

          (B)  The date the tax return is filed; and

 

     (2)  Changing the effective date to July 1, 2020, to facilitate further discussion on the measure.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1948, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1948, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DONNA MERCADO KIM, Chair