STAND. COM. REP. NO.  1315-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2998

      S.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 Judiciary, to which was referred S.B. No. 2998, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to incorporate fairness provisions into Hawaii tax laws that are similar to those used in federal law under the Internal Revenue Code for the calculation of tax penalties.  Specifically, this measure prohibits the stacking of tax underpayment penalties.

Chun, Kerr, Dodd, Beaman & Wong, LLLP, and one individual testified in support of this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2998, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

GILBERT KEITH-AGARAN, Chair