Bill Text: HI SB118 | 2010 | Regular Session | Amended

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Bill Title: Taxation; Statutes of Limitations

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB118 Detail]

Download: Hawaii-2010-SB118-Amended.html

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STAND. COM. REP. NO. 194

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 118

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Judiciary and Government Operations, to which was referred S.B. No. 118 entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to limit the time period in which the collection of a tax by levy or court proceeding may commence to ten years after assessment of the tax.

 

     This measure applies to the following taxes: income, general excise, transient accommodations, use, fuel, conveyance, rental motor vehicle and tour vehicle surcharge, hospital and nursing facility, and insurance.

 

     Your Committee received testimony in support of this measure from the Chamber of Commerce of Hawaii; Hawaii Society of Certified Public Accountants; Chun, Kerr, Dodd, Beaman & Wong; and three individuals.  Testimony in opposition was received from the Department of Taxation.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that taxpayers should have the benefit of ascertaining with certainty at a future time when their tax liability comes to an end.  The federal government imposes a ten‑year statute of limitations on the collection of delinquent taxes.  According to testimony, Hawaii is one of only four states that presently does not have some form of statute of limitations on tax collections.

 

     Your Committee finds that current law providing for a three year limitation on assessment may need to be changed if a ten year statute of limitation period is imposed.  Your Committee believes that the three year assessment limitation period and the proposed ten year statute of limitation period may need to be amended as this measure progresses.

 

     Your Committee has amended this measure by making conforming and clarifying amendments on the recommendation of the Department of Taxation, and changing the effective date to July 1, 2050, to continue the discussions in this matter.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 118, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 118, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

 

		____________________________ BRIAN T. TANIGUCHI, Chair