Hawaii spending $32M to redo tax collection system

HONOLULU (AP) - State officials say Hawaii is spending $32 million to rebuild a tax collection system that has never worked properly.

And lawmakers are questioning why Hawaii's health insurance exchange would hire the same contractor to build the state's online marketplace at the center of President Barack Obama's health care overhaul.

The Honolulu Star-Advertiser reports Senate lawmakers are getting a status update on the tax system during a hearing Wednesday.

CGI Group Inc. was paid $87.5 million from 1999 to 2011 to modernize a system for the state Department of Taxation.

Senate President Donna Mercado Kim says she doesn't think the Hawaii Health Connector should have hired CGI to a $53 million contract given past problems.

CGI says its system has been successful, helping collect delinquent taxes and cutting refund times.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.