HOUSE OF REPRESENTATIVES	H.R. NO.	97
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

HOUSE RESOLUTION

requesting the department of taxation to establish a tax amnesty day to allow businesses and individuals to pay unpaid taxes without PENALTIES or fines.

WHEREAS, the State relies on tax revenue to fund essential public services, including education, health care, infrastructure, and public safety; and

WHEREAS, some businesses and individuals may have outstanding tax liabilities due to financial hardships, administrative errors, or unintentional noncompliance; and

WHEREAS, penalties and fines associated with unpaid taxes can discourage individuals and businesses from coming forward to settle their outstanding liabilities; and

WHEREAS, the establishment of a Tax Amnesty Day would provide a one-time opportunity for businesses and individuals to voluntarily pay their outstanding taxes without incurring additional penalties and fines; and

WHEREAS, similar tax amnesty programs in other jurisdictions have successfully encouraged voluntary compliance, increased tax revenue collection, and reduced administrative burdens on tax enforcement agencies; and

WHEREAS, in 2009, the Hawaii Department of Taxation offered a Tax Fresh Start Program to provide an opportunity for eligible taxpayers to pay their back taxes to the State while avoiding penalties and potentially avoiding referral for criminal prosecution; and

WHEREAS, under the Tax Fresh Start Program, approximately $14,400,000 was collected, including $4,200,000 in general excise tax and $3,900,000 in income tax; and

WHEREAS, a Tax Amnesty Day would benefit the State and taxpayers by increasing tax compliance, reducing financial burdens on individuals and businesses, and generating additional revenue for essential government services; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Department of Taxation is requested to establish a Tax Amnesty Day to allow businesses and individuals to pay unpaid taxes without penalties or fines; and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to develop guidelines and procedures for implementing the Tax Amnesty Day, including public outreach efforts to inform taxpayers about the opportunity; and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to submit a report, including the feasibility and the potential impact of a proposed Tax Amnesty Day, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to Director of Taxation.

OFFERED BY:

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Report Title:

Department of Taxation; Tax Amnesty Day