STAND. COM. REP. NO. 672
RE: S.B. No. 1268
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2019
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 1268 entitled:
"A BILL FOR AN ACT RELATING TO TAX REPORTING,"
begs leave to report as follows:
The purpose and intent of this measure is to revise the reporting requirements for persons who collect rent or gross rental proceeds on behalf of real property owners and transient accommodation operators and to require that the full amount of the funds collected be reported to the Department of Taxation.
Further, this measure establishes fines for persons who fail to comply with the reporting requirements.
Your Committee received testimony in support of this measure from the Department of Taxation.
Your Committee received testimony in opposition to this measure from Expedia.
Your Committee received comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that state law does not currently penalize persons who do not comply with the reporting requirements of sections 237-30.5 and 237D-8.5, Hawaii Revised Statutes. Your Committee believes that establishing a monetary penalty for failing to file the appropriate information with the Department of Taxation and increasing the information required to be reported will increase compliance and tax collections while reducing administrative costs.
Your Committee has amended this measure by:
(1) Inserting a savings clause section;
(2) Changing the effective date from upon approval to July 1, 2050, to facilitate further discussion on the measure; and
(3) Making technical nonsubstantive amendments 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 S.B. No. 1268, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1268, 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