STAND. COM. REP. NO. 888

Honolulu, Hawaii

RE:    H.B. No. 1532

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Public Safety, Government Operations, and Military Affairs, to which was referred H.B. No. 1532, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO REAL PROPERTY TAX APPEALS,"

begs leave to report as follows:

     The purpose and intent of this measure is to help reduce the number of appeals to the Tax Appeal Court by requiring:

     (1)  A real property tax assessment appellant to obtain an initial decision from an administrative body established by county ordinance prior to appealing to the Tax Appeal Court when required to do so by county law; and

     (2)  The notice of appeal to be accompanied by a copy of the decision rendered by the administrative body.

     Your Committee received testimony in support of this measure from the Department of Budget and Fiscal Services of the City and County of Honolulu, the County of Maui Real Property Tax Division, the Mayor of the County of Maui, and a member of the Maui County Council.  Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that taxpayers currently have the option of appealing a disputed real property tax assessment with either the Tax Appeal Court or a county board of review.  Your Committee further finds that the current wait for a trial date for cases filed with the Tax Appeal Court is approximately eighteen months.  This measure will help to alleviate the workload of the Tax Appeal Court and allow for a quicker resolution of real property tax appeals at the county review level.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Public Safety, Government Operations, and Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1532, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1532, H.D. 2, S.D. 1, and be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committee on Public Safety, Government Operations, and Military Affairs,

____________________________

WILL ESPERO, Chair