STAND. COM. REP. NO. 361-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1493

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Economic Development, to which was referred H.B. No. 1493 entitled:

"A BILL FOR AN ACT RELATING TO THE TAX ADMINISTRATION SPECIAL FUND,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Increase the amount of monies maintained in the Tax Administration Special Fund; and

(2) Amend the purpose of the special fund.

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 law only allows the Department of Taxation to use the Tax Administration Special Fund to develop, implement, and provide taxpayer education programs. Your Committee believes that tax compliance programs are equally important as they generate revenue and bolster voluntary taxpayer compliance in the State. This measure will provide the Department of Taxation with the necessary means and flexibility to implement tax compliance programs.

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. 1493 and recommends that it pass Second Reading and be referred to your Committee on Finance.

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

____________________________

SEAN QUINLAN, Chair