STAND. COM. REP. NO. 3786

Honolulu, Hawaii

RE: H.B. No. 2486

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 Ways and Means, to which was referred H.B. No. 2486, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAX ENFORCEMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Director of Taxation or the Director's designee to serve administrative subpoenas outside of Hawaii.

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

Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that many businesses that are subject to Hawaii state taxes do not have a physical presence in the State or maintain a location for service of process in the State. Your Committee believes that authorizing the Director of Taxation and a designee of the Director to serve administrative subpoenas outside the State will help to assist the Department of Taxation in enforcing Hawaii's tax laws and thus increase tax revenues.

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. 2486, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

DONOVAN M. DELA CRUZ, Chair