STAND. COM. REP. NO. 1546
Honolulu, Hawaii
, 2005
RE: S.B. No. 460
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committee on Finance, to which was referred S.B. No. 460 entitled:
"A BILL FOR AN ACT RELATING TO TAX REFUNDS,"
begs leave to report as follows:
The purpose of this bill is to promote fairness in taxation administration by allowing taxpayers to:
(1) Appeal a denial in whole or in part by the Department of Taxation (DOTAX) of a tax refund claim by filing an appeal with a Board of Review or the Tax Appeal Court within 30 days after notice of the denial of the claim; and
(2) File an appeal with a Board of Review or the Tax Appeal Court for review of the merits of a tax refund claim within 180 days after the claim was filed, if DOTAX fails to act on the claim.
The Chamber of Commerce of Hawaii, Hawaii State Bar Association Tax Section, Hawaii Society of Certified Public Accountants Tax Committee, National Federation of Independent Business - Hawaii, PriceWaterhouseCoopers LLP, Chun Kerr Dodd Beaman & Wong, and Horwath Kam & Company supported this bill. DOTAX opposed this measure. The Tax Foundation of Hawaii provided comments.
Your Committee recognizes the necessity for taxpayers to provide adequate information to support any refund claim and, therefore, urges DOTAX to develop applicable rules.
Additionally, your Committee notes that this measure is not intended to interfere with the current allowable time periods during which DOTAX is allowed to issue assessments.
After careful consideration, your Committee has amended this bill by clarifying that any refunds or credits appealed may only be awarded if those refunds or credits were claimed during the applicable statutory period of limitation.
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 S.B. No. 460, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 460, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
____________________________ DWIGHT TAKAMINE, Chair |
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