STAND. COM. REP. NO. 3895

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2179

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

 

Sir:

 

     Your Committees on Judiciary and Ways and Means, to which was referred H.B. No. 2179, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO COLLECTION OF DELINQUENT TAXES,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to authorize the Director of Taxation, under certain circumstances, to apply to the circuit court to convert certain tax liens into enforceable civil judgments.

 

     Your Committees received testimony in support of this measure from the Department of Taxation.  Your Committees received testimony in opposition to this measure from one individual.  Your Committees received comments on this measure from the Tax Foundation of Hawaii.

 

     Your Committees find that there are several current delinquent tax cases that are essentially uncollectible despite the existence of tax liens.  When a delinquent taxpayer deliberately ignores the Department of Taxation's communications and the lien remains uncontested, the collection process cannot move forward.  This measure will lead to increased tax compliance by authorizing the Director of Taxation to apply to the circuit court to convert certain tax liens into enforceable civil judgments.

 

     Your Committees have amended this measure by making it effective upon its approval.

 

     As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2179, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2179, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

 

________________________________

DONOVAN M. DELA CRUZ, Chair

 

________________________________

KARL RHOADS, Chair