STAND. COM. REP. NO. 435

Honolulu, Hawaii

, 2021

RE: H.B. No. 1045

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 1045 entitled:

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

begs leave to report as follows:

The purpose of this measure is to revise the manner in which a person authorized to collect rent provides information to the Department of Taxation by specifying conditions and penalties.

Your Committee received testimony in support of this measure from the Department of Taxation. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that existing state law requires persons who collect rent on behalf of property owners to provide the Department of Taxation with information regarding the owner. However, there are no penalties for failing to comply. This measure provides the Department of Taxation with additional tools to help monitor and enforce compliance with reporting requirements.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1045, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1045, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development,

____________________________

SEAN QUINLAN, Chair