CONFERENCE COMMITTEE REP

CONFERENCE COMMITTEE REP. NO.8-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2568

H.D. 1

S.D. 1

C.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2568, H.D. 1, S.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to assist in the collection of state taxes by:

(1) Expanding the Department of Taxation's current authority to ascertain the fair market value of sales between affiliated companies or persons when the consideration paid is not indicative of the fair market value of sales and all taxes administered under title 14, Hawaii Revised Statutes;

(2) Providing a continuous levy on the salary or wages of a delinquent taxpayer;

(3) Indemnifying a person from the claims of third parties when the person honors a state tax levy; and

(4) Expanding the authority for recovering unpaid withholding taxes.

Your Committee on Conference has amended the measure by:

(1) Clarifying that the provision concerning income taxes withheld by an employer applies to withholding requirements for payroll periods beginning on or after July 1, 2002, rather than to income taxes withheld for a payroll period beginning on or after July 1, 2002; and

(2) Making technical, nonsubstantive amendments for purposes of clarity and consistency.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2568, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2568, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ COLLEEN HANABUSA, Chair		____________________________ NATHAN SUZUKI, Chair