STAND. COM. REP. NO.  1605

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1327

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1327, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE RATE OF INTEREST APPLICABLE TO OVERPAYMENTS OF TAX,"

begs leave to report as follows:

     The purpose of this bill is to reduce the interest rate payable on refunds for an overpayment of taxes from two-thirds of one percent to one-third of one percent.

     The Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this bill by replacing its contents with the similar House bill, H.B. No. 1584, H.D. 1.  As amended, this bill:

(1)  Applies to claims for refund made on or after January 1, 2009; and

(2)  Makes technical, nonsubstantive changes for clarity, consistency, and style.

     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. 1327, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1327, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair