STAND. COM. REP. NO. 172-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2179

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. 2179 entitled:

"A BILL FOR AN ACT RELATING TO COLLECTION OF DELINQUENT TAXES,"

begs leave to report as follows:

The purpose of this measure is to authorize the Director of Taxation, under certain circumstances, to apply to the circuit court to convert certain tax liens into enforceable civil judgments.

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

Your Committee finds that there are several existing delinquent tax cases that are essentially uncollectible, despite the existence of tax liens. Your Committee further finds that when a tax lien is ignored and remains uncontested, the collection process cannot move forward. This measure would allow for judicial remediation by authorizing the Director of Taxation to seek judicial enforcement of tax liens, which will improve the efficiency of tax administration.

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. 2179 and recommends that it pass Second Reading and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

SEAN QUINLAN, Chair