STAND. COM. REP. NO. 168

Honolulu, Hawaii

RE:    S.B. No. 1222

       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 S.B. No. 1222 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 require a taxpayer appealing a real property tax assessment to first obtain a decision from an administrative body established by county ordinance before appealing to the state Tax Appeal Court.

     Your Committee received testimony in support of this measure from one county department.  Your Committee received comments on this measure from one county department.

     Your Committee finds that the current law permits a taxpayer appealing a real property tax assessment to appeal directly to the state Tax Appeal Court, bypassing the applicable county real property tax review board.  This creates inefficiency and waste for both state and county governments.  County real property tax review boards are frequently able to conclusively settle disputes regarding real property tax assessments.  Requiring appellants to first appeal to the applicable county real property tax review board will promote fairness for all taxpayers.

     Your Committee has amended this measure by:

     (1)  Making clarifying amendments to the appeals process provisions; and

     (2)  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 S.B. No. 1222, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1222, 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