STAND. COM. REP. NO. 1729

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1173

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1173, H.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify the State's laws regarding tax liens.

 

     More specifically, the measure requires the Department of Taxation to:

 

     (1)  State the assessment date on certificates of tax lien; and

 

     (2)  Issue certificates of discharge when the tax liability upon which a lien is based has been satisfied or has become unenforceable by lapse of time.  

 

     Your Committee received testimony in support of this measure from the Chamber of Commerce Hawaii and one individual.

 

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

 

     Your Committee finds that providing a clear and reliable procedure for extinguishing tax liens once the underlying liability is paid in full or becomes unenforceable will promote transparency, safeguard taxpayers from undue tax burdens, and streamline the State's tax administration.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the application of the measure to section 431:7-204.6, Hawaii Revised Statutes, as recommended by the Department of Taxation; and

 

     (2)  Making technical, nonsubstantive edits for purposes of clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1173, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1173, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair