HOUSE OF REPRESENTATIVES

H.C.R. NO.

262

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING THE AUDITOR TO CONDUCT A MANAGEMENT AUDIT OF THE DELINQUENT TAX PROJECT OF THE DEPARTMENT OF TAXATION.

 

 

 


     WHEREAS, the Department of Taxation has contracted with a private firm to implement a delinquent tax project; and

 

     WHEREAS, under the project, the contractor is required to enhance delinquent tax collections by identifying taxpayers who have tax delinquencies and assisting the Department in collecting the delinquent taxes; and

 

     WHEREAS, the private contractor is compensated by retaining one-third of the delinquent taxes collected; and

 

     WHEREAS, the Legislature, however, is concerned that the project is not working as effectively or efficiently as it should; and

 

     WHEREAS, a critical question has arisen of whether the project continues to be in the State's best public interest; and

 

     WHEREAS, the contractor has been paid approximately $10,000,000 for the first phase, and may be compensated by an additional $15,000,000 for the next phase; and

 

     WHEREAS, these payment amounts are substantial, and the State should be assured that it is receiving full return on these expenditures and that the contract continues to be in the State's best public interest; and

 

     WHEREAS, thus, the Legislature finds that an audit of the project should be conducted; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2009, the Senate concurring, that the Auditor is requested to conduct a management audit of the delinquent tax project of the Department of Taxation; and

 

     BE IT FURTHER RESOLVED that the Director of Taxation and private contractor for the project are requested to cooperate with the Auditor to the fullest extent possible during the conduct of the management audit; and

 

     BE IT FURTHER RESOLVED the Auditor is requested to submit findings and recommendations of the audit to the Legislature at least twenty days before the convening of the Regular Session of 2010; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor and the Director of Taxation, who, in turn, is requested to transmit a copy to the private contractor conducting the delinquent tax project.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Tax Audit