STAND. COM. REP. NO. 3109

Honolulu, Hawaii

RE: H.B. No. 2485

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 2485, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STATE TAX ADMINISTRATION,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Repeal an obsolete fee for a certified copy of a tax clearance;

(2) Add a penalty for failure to comply with reporting requirements under general excise tax law and transient accommodations tax law for collection of rent by a third party; and

(3) Raise the unfair competition penalty under general excise tax law to adjust for inflation.

Your Committee received testimony in support of this measure from the Department of Taxation.

Your Committee received comments on this measure from the Tax Foundation of Hawaii and Travel Technology Association.

Your Committee finds that under existing law, every person authorized to collect rent on behalf of an owner of real property in the State is required to provide the Department of Taxation with certain information. However, there is no penalty for failing to comply with this requirement. This measure will provide the Department of Taxation with an enforcement mechanism to help the Department promote tax compliance and uphold the State's tax laws.

Your Committee has amended this measure by making it effective upon its approval.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2485, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2485, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

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

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KARL RHOADS, Chair