STAND. COM. REP. NO.  565

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1256

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 1256 entitled:

"A BILL FOR AN ACT RELATING TO THE PERFECTION OF APPEALS TO THE TAX APPEAL COURT,"

begs leave to report as follows:

     The purpose of this bill is to ensure timely notification by requiring that when appealing a decision by the State Board of Review, or equivalent administrative body established by county ordinance, to the Tax Appeal Court, a taxpayer must serve a notice of appeal on the Director of Taxation or the county clerk, as appropriate, to properly confer jurisdiction over the appeal.

     The Department of Taxation and the Department of the Attorney General testified in support of this bill.  The Department of Budget and Fiscal Services of the City and County of Honolulu supported the intent of this measure.  The Tax Foundation of Hawaii offered comments.

     This bill is in response to a Hawaii Supreme Court decision that a taxpayer is not required to serve the Director of Taxation with a notice of appeal.  Your Committee finds that the absence of such timely notification may adversely affect the State's due process rights.

     Your Committee has amended this bill by:

     (1)  Making similar, conforming amendments to section 232-16,      Hawaii Revised Statutes;

     (2)  Designating the county administrator of real property              tax assessment, instead of the county clerk, as the            appropriate party to be served with the notice of             appeal when the decision involves a county; and

     (3)  Making technical, nonsubstantive amendments for clarity,      consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1256, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1256, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

TOMMY WATERS, Chair