STAND. COM. REP. NO.449-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 2568
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 2568 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 assist in the collection of taxes by:
(1) Expanding the Department of Taxation's (DOTAX) authority to ascertain the true value of sales of products between affiliated companies or persons when the consideration paid is not indicative of the true value to sales of services 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 third parties when the person honors a state tax levy; and
(4) Expanding the authority for recovering withholding taxes.
DOTAX testified in support of this bill. The Tax Foundation of Hawaii offered comments.
Your Committee has amended this bill by:
(1) Replacing references to "true value" with the term "fair market value";
(2) Adding a definition for "affiliated companies or persons"; and
(3) Making technical, nonsubstantive amendments to correct technical drafting errors.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2568, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2568, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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