HOUSE OF REPRESENTATIVES	H.C.R. NO.	182
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

requesting that the Tax Review Commission consider certain goals for an equitable, efficient, and adequate tax policy structure in its deliberations.

WHEREAS, under Article VII, Section 3, of the Constitution of the State of Hawaii, the Tax Review Commission (TRC) is required to submit to the legislature an evaluation of the State's tax structure and recommend revenue and tax policy; and

WHEREAS, Section 232E-3, Hawaii Revised Statutes, defines the duty of the TRC to conduct a systematic review of the State's tax structure, using such standards as equity and efficiency; and

WHEREAS, prior TRCs have commissioned and produced various reports and studies regarding certain aspects of Hawaii’s tax code; and

WHEREAS, numerous proposals to modify the tax structure are introduced for legislative action every year; and

WHEREAS, the basic functions of the Department of Taxation are to ensure:

(1) Efficient, accurate revenue collection; and

(2) Compliance with the tax laws of the State of Hawaii; and

WHEREAS, prior TRCs have been guided by three primary principles of sound tax policy that include equity, efficiency, and adequacy where:

(1) Equity is a measurement of how tax burdens are distributed;

(2) Efficiency is a measure of the transaction costs of the tax system; and

(3) Adequacy is the ability of the tax system to produce enough revenue to fund government spending; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the Senate concurring, that the TRC consider the following goals for an equitable, efficient, and adequate tax policy structure:

(1) State and local tax policy that maximizes benefit to Hawaii taxpayers when considering provisions of the federal Internal Revenue Code;

(3) Weighing the impact of federal policies and activity on Hawaii taxpayers; and

(2) Ensuring non-residents and visitors contribute fairly while minimizing impacts on residents;

(3) Gauging the effectiveness and appropriateness of all tax credits and exemptions pursuant to Hawaii law;

(4) Evaluating the positive or negative features and impacts of one-time versus recurring tax revenue sources;

(5) Evaluating factors that affect revenue generation and the cost and effectiveness of enforcement activities; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of the Department of Taxation and the Chair of the Tax Review Commission.

OFFERED BY:

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Report Title:

Requesting that the Tax Review Commission consider certain goals for an equitable, efficient, and adequate tax policy structure in its deliberations.