Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 851 entitled:

begs leave to report as follows:

The purpose of this bill is to eliminate the requirement that assessed taxes be paid prior to filing an appeal of the assessment to the Tax Appeal Court.

The Hawaii State Bar Association Tax Section, the National Federation of Independent Business, the Tax Committee of the Hawaii Society of Certified Public Accountants, and a concerned individual testified in support of this bill. PricewaterhouseCoopers LLP supported the intent of this measure. The Department of Taxation opposed this bill. The Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by making:

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. 851, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 851, H.D. 1, and be placed on the calendar for Third Reading.