REPORT TITLE:
Taxes; Payment After Appeal


DESCRIPTION:
Provides that disputed taxes are paid only after appellate court
issues decision on amount.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3010
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TAXES.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 232-24, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§232-24  Taxes paid pending appeal.  [The] No tax shall be
 
 4 paid upon the amount of any assessment, actually in dispute and
 
 5 in excess of that admitted by the taxpayer, and covered by an
 
 6 appeal to the tax appeal court duly taken, [shall,] pending the
 
 7 final determination of the appeal[, be paid by the director of
 
 8 finance into the "litigated claims fund".  If the final
 
 9 determination is in whole or in part in favor of the appealing
 
10 taxpayer, the director of finance shall repay to the taxpayer out
 
11 of the fund, or if investment of the fund should result in a
 
12 deficit therein, out of the general fund of the State, the amount
 
13 of the tax paid upon the amount held by the court to have been
 
14 excessive or nontaxable, together with interest at the rate of
 
15 eight per cent a year from the date of each payment into the
 
16 litigated claims fund, the interest to be paid from the general
 
17 fund of the State.  The balance, if any, of the payment made by
 
18 the appealing taxpayer, or the whole of the payment, in case the
 
19 decision is wholly in favor of the assessor, shall, upon the
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 final determination become a realization under the tax law
 
 2 concerned.
 
 3      In a case of an appeal to a board of review, the tax paid
 
 4 upon the amount of the assessment actually in dispute and in
 
 5 excess of that admitted by the taxpayer, shall during the
 
 6 pendency of the appeal and until and unless an appeal is taken to
 
 7 the tax appeal court, be held by the director of finance in a
 
 8 special deposit.  In the event of final determination of the
 
 9 appeal in the board of review, the director of finance shall
 
10 repay to the appealing taxpayer out of the deposit the amount of
 
11 the tax paid upon the amount held by the board to have been
 
12 excessive or nontaxable, if any, the balance, if any, or the
 
13 whole of the deposit, in case the decision is wholly in favor of
 
14 the assessor, to become a realization under the tax law
 
15 concerned.] and the issuance of a decision or order on the amount
 
16 owing."
 
17      SECTION 2.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 3.  This Act shall take effect on July 1, 2000.
 
20 
 
21                       INTRODUCED BY:  ___________________________