CONFERENCE COMMITTEE REP. NO. 123

Honolulu, Hawaii

, 2025

RE: S.B. No. 1469

S.D. 2

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1469, S.D. 2, H.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to suspend the statute of limitations on collections of income tax, general excise tax, transient accommodations tax; use tax; fuel tax; conveyance tax; and rental motor vehicle, tour vehicle, and car-sharing vehicle surcharge tax during the period an assessment is pending on appeal before the Taxation Board of Review or Tax Appeal Court.

Your Committee on Conference finds that due to a backlog of cases pending in the Taxation Board of Review and Tax Appeal Court, the fifteen-year statute of limitations on certain collection activities has expired or will soon expire for some assessments currently pending on appeal. Because taxpayers currently are not required to pay an assessed tax to file a tax appeal with the Taxation Board of Review or Tax Appeal Court, and because collection activities are stayed during the pendency of those appeals, decisions and court judgments filed after the statute of limitations expires risk being uncollectible. This measure will extend the collection window during the time an appeal is pending to prevent taxpayers from "running out the clock" on collections by appealing their debts.

Your Committee on Conference has amended this measure by making it effective upon its approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1469, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1469, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ DAVID A. TARNAS Co-Chair	____________________________ KARL RHOADS Chair
____________________________ LISA KITAGAWA Co-Chair	____________________________ DRU KANUHA Co-Chair