STAND. COM. REP. NO. 1024

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1203
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1203, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE COLLECTION OF TAXES,"

begs leave to report as follows:

     The purpose of this bill is to allow collection agencies to
recover their collection fees directly from delinquent taxpayers
when under contract with the Department of Taxation.

     This measure amends the administrative provisions of the tax
law and the collection agencies law to specifically allow
collection agencies to collect their fees while under contract
with the Department of Taxation from the delinquent taxpayers
they are collecting delinquent taxes from.  Previously,
collection agencies were not authorized to collect their fee from
the taxpayers, but the taxpayers were obligated to pay the fee
for collection under section 231-25.5(a)(1), Hawaii Revised
Statutes.  Authorizing the collection agencies to collect their
fees from the delinquent taxpayer makes the process more
efficient for the collection agency and the Department of
Taxation.

     Your Committee heard testimony in support of this measure
from the Department of Taxation.  Informational comments were
submitted by the Tax Foundation of Hawaii.

 
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                                   STAND. COM. REP. NO. 1024
                                   Page 2


     Your Committee has amended this bill by making a technical
nonsubstantive change.

     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.
1203, H.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1203,
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,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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