STAND

STAND. COM. REP. 596

Honolulu, Hawaii

, 2003

RE: H.B. No. 1225

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. 1225 entitled:

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

begs leave to report as follows:

The purpose of this bill is to amend Hawaii's income tax law to:

(1) Make consistent with the Internal Revenue Code (IRC) the application of the estimated tax underpayment penalty;

(2) Conform to the IRC provisions relating to minimum estimated tax payments for prior year returns; and

(3) Reconcile with the IRC the Department of Taxation's (DOTAX) ability to grant extensions for filing income tax returns.

DOTAX submitted testimony in support of this bill. The Tax Foundation of Hawaii submitted comments on the measure.

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. 1225 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT Y. TAKAMINE, Chair