STAND. COM. REP. NO.  721-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2606

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2606 entitled:

"A BILL FOR AN ACT RELATING TO TAX CLEARANCE FEES,"

begs leave to report as follows:

The purpose of this measure is to improve the efficiency and effectiveness of the Department of Taxation by authorizing the Department to impose:

     (1)  A $20 fee for a tax clearance application;

     (2)  A $5 fee for a certified copy of a tax clearance; and

     (3)  Additional fees related to the issuance of tax clearances.

The Department of Taxation testified in support of this measure.  The Tax Foundation of Hawaii provided comments.

     Your Committee has amended this bill by:

     (1)  Deleting the provision allowing the Department of Taxation to charge additional fees related to the issuance of tax clearances; and

     (2)  Making technical, nonsubstantive amendments 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 H.B. No. 2606, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2606, 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