Honolulu, Hawaii



RE:    S.B. No. 1192

       S.D. 1




Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 1192 entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to increase the amount of time that the Department of Taxation has within which to sell property that has been seized due to a failure of the taxpayer to pay the tax delinquency.  Additionally, this measure provides for a tolling of the time period if any party commences an action concerning the seized property.


     Your Committee received testimony 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 finds that under existing law, the Department of Taxation is required to operate within an unrealistic time frame to sell property that has been seized for the non-payment of taxes.  Moreover, if a party claims to be the true owner of the property and makes a claim to the seized property, a court determination must be made on the matter before any sale can occur.  By the time any determination has been made, the time for selling the property under the existing law will have passed, and the Department must start the sale process all over again.  The net result is that the seizing and selling of property is not a viable option for the Department.  Accordingly, your Committee finds that the time periods established by this measure will allow the Department of Taxation to effectively conduct sales of property that have been seized for non-payment of taxes.


     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity, conformity, 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. 1192, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1192, 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,