STAND. COM. REP. NO. 359-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1494

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. 1494 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL ENFORCEMENT SECTION,"

begs leave to report as follows:

The purpose of this measure is to amend the purpose and duties of the Special Enforcement Section of the Department of Taxation.

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 the Special Enforcement Section of the Department of Taxation was established to give the Department necessary resources and tools to target high-risk, cash-based transactions to ensure compliance with state tax laws. Your Committee further finds that the duties of the Special Enforcement Section need to be updated to reflect current policies and practices of the Department of Taxation. This measure would update the Special Enforcement Section's legal authority, thereby ensuring compliance with state tax laws and promoting fairness and transparency for Hawaii's taxpayers.

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. 1494 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,

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SEAN QUINLAN, Chair