STAND. COM. REP. NO. 1195

Honolulu, Hawaii

, 2021

RE: H.C.R. No. 130

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Pandemic & Disaster Preparedness, to which was referred H.C.R. No. 130 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DIRECTOR OF TAXATION TO WAIVE PENALTIES AND INTEREST SOUGHT FROM SMALL BUSINESSES AND INDIVIDUAL TAXPAYERS AS A RESULT OF UNDUE HARDSHIP RELATED TO THE CORONAVIRUS DISEASE 2019 PANDEMIC,"

begs leave to report as follows:

The purpose of this measure is to request the Director of Taxation to waive penalties and interest sought from small businesses and individual taxpayers as a result of undue hardship related to the coronavirus disease 2019 (COVID-19) pandemic.

Your Committee received testimony in support of this measure from the Chamber of Commerce Hawaii, ILWU Local 142, and Retail Merchants of Hawaii. Your Committee received comments on this measure from the Department of Taxation.

Your Committee finds that tens of thousands of small businesses and many individual taxpayers have failed to remit their general excise tax in a timely manner or failed to set aside money to pay their income taxes during the economic and financial irregularities experienced during the COVID-19 pandemic. Your Committee further finds that the Director of Taxation has the discretionary authority to approve compromise offers requested by taxpayers who owe $50,000 or less in taxes.

As affirmed by the record of votes of the members of your Committee on Pandemic & Disaster Preparedness that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 130 and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Pandemic & Disaster Preparedness,

____________________________

LINDA ICHIYAMA, Chair