STAND. COM. REP. NO. 1176

Honolulu, Hawaii

RE:    H.B. No. 354

       H.D. 1

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 354, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to improve the procedures for small claims tax appeals by:

     (1)  Prohibiting pretrial discovery; and

     (2)  Limiting costs and fees awarded to the prevailing party to fees paid directly to the court in the course of conducting the tax appeal.

     Your Committee received comments in support of this measure from Larry J. Shapiro, JD.

     Your Committee received comments in opposition to this measure from Gary T. Kurokawa, Administrator, Real Property Assessment Division, City and County of Honolulu; Stanley A. Sitko, Real Property Tax Administrator, Department of Finance, County of Hawaii; and Sally A. Motta, Deputy Finance Director, Department of Finance, Real Property Assessment, County of Kauai.

     Your Committee received comments on this measure from Tax Foundation of Hawaii.

     Your Committee finds that the procedures in Hawaii for resolving tax appeals of less than $1,000 are intended to be streamlined and informal.  By prohibiting pre-trial discovery and limiting the award of costs and fees for these appeals, this measure will further reduce the unnecessary expenditure of time and resources on small claims cases, while promoting the inexpensive and speedy resolution of these tax disputes.

     Your Committee has amended this measure by making it effective upon its approval.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 354, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 354, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair