STAND. COM. REP. NO. 774

Honolulu, Hawaii

RE: S.B. No. 1469

S.D. 2

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 S.B. No. 1469, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to suspend the statute of limitations on the collection of taxes during any period in which an assessment is pending on appeal before the Taxation Board of Review or Tax Appeal Court.

Your Committee received written comments in support of this measure from the Department of Taxation.

Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

Your Committee recognizes that the fifteen-year statute of limitations on certain collection activities has expired or will soon expire for a number of assessments currently pending appeal before the Taxation Board of Review and Tax Appeal Court. Your Committee also recognizes that, because taxpayers are not required to pay an assessed tax to file an appeal with the Taxation Board of Review or Tax Appeal Court, there is risk that the taxes owed may become uncollectable when the statute of limitations expires. Your Committee finds that this measure provides an appropriate mechanism for averting this outcome in a number of these cases.

Your Committee has amended this measure by making a technical nonsubstantive change for the purpose 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 S.B. No. 1469, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1469, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair