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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1150 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAX COLLECTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"(a)
General rule. The amount of
income taxes imposed by this chapter (also the amount of income taxes imposed
by any preceding law of the State) and the liability of any employer in respect
of wages, shall be assessed or levied and the overpayment, if any, shall be
credited within three years after filing of the return for the taxable year, or
within three years of the due date prescribed for the filing of the return, whichever
is later. No proceeding in court without
assessment for the collection of the taxes or the enforcement of the liability
shall be begun after the expiration of the period. Where the assessment of the tax imposed by
this chapter has been made within the period of limitation applicable thereto,
the tax may be collected by levy or by a proceeding in court under chapter 231;
provided that the levy is made or the proceeding was begun within fifteen years
after the assessment of the tax. For any
tax that has been assessed [prior to] before July 1, 2009, the
levy or proceeding shall be barred after June 30, 2024.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An
offer in compromise under section 231-3(10) is pending; [and]
(4) During
which the taxpayer is outside the State for a continuous period of at least six
months; provided that if at the time of the taxpayer's return to the State the
period of limitations on collection after assessment would expire before the
expiration of six months from the date of the taxpayer's return, the period
shall not expire before the expiration of the six months[.]; and
(5) An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed."
SECTION 2. Section 237-40, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An offer in compromise under section 231-3(10)
is pending; [and]
(4) During which the taxpayer is outside the State
if the period of absence is for a continuous period of at least six months;
provided that if at the time of the taxpayer's
return to the State the period of limitations on collection after assessment
would expire before the expiration of six months from the date of the taxpayer's
return, the period shall not expire before the expiration of the six months[.];
and
(5) An appeal of the assessment is pending
before the taxation board of review or the tax appeal court, beginning on the
date the notice of appeal is filed and concluding on the date a final decision
is issued or the case is withdrawn or dismissed."
SECTION 3. Section 237D-9, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c)
Except as otherwise provided by this section, the amount of taxes
imposed by this chapter shall be assessed or levied within three years after
the annual return was filed, or within three years of the due date prescribed
for the filing of the return, whichever is later, and no proceeding in court
without assessment for the collection of any of the taxes shall be begun after
the expiration of the period. Where the
assessment of the tax imposed by this chapter has been made within the period
of limitation applicable thereto, the tax may be collected by levy or by a
proceeding in court under chapter 231; provided that the levy is made or the
proceeding was begun within fifteen years after the assessment of the tax. For any tax that has been assessed [prior
to] before July 1, 2009, the levy or proceeding shall be barred
after June 30, 2024.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An
offer in compromise under section 231-3(10) is pending; [and]
(4) During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer's return to the State
the period of limitations on collection after assessment would expire before
the expiration of six months from the date of the taxpayer's return, the period
shall not expire before the expiration of the six months[.]; and
(5) An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed."
SECTION 4. Section 238-7, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Where the assessment of the tax
imposed by this chapter has been made within the period of limitation
applicable thereto, the tax may be collected by levy or by a proceeding in
court under chapter 231; provided that the levy is made or the proceeding was
begun within fifteen years after the assessment of the tax. For any tax that has been assessed [prior
to] before July 1, 2009, the levy or proceeding shall be barred
after June 30, 2024.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An
offer in compromise under section 231-3(10) is pending; [and]
(4) During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer's return to the State the period of limitations on collection after
assessment would expire before the expiration of six months from the date of
the taxpayer's return, the period shall not expire before the expiration of the
six months[.]; and
(5) An appeal of the assessment is pending before the taxation board of review or the tax appeal court, beginning on the date the notice of appeal is filed and concluding on the date a final decision is issued or the case is withdrawn or dismissed."
SECTION 5. Section 243-14, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b)
The amount of license taxes imposed by this chapter shall be assessed or
levied, or the overpayment, if any, shall be credited within three years after
filing of the monthly statement, or within three years of the due date
prescribed for the filing of the statement, whichever is later. No proceeding in court without assessment for
the collection of the taxes or the enforcement of the liability shall begin
after the expiration of the three-year period.
Where the assessment of the tax imposed by this chapter has been made
within the period of limitation applicable thereto, the tax may be collected by
levy or by a proceeding in court under chapter 231; provided that the levy is
made or the proceeding was begun within fifteen years after the assessment of
the tax. For any tax that has been
assessed [prior to] before July 1, 2009, the levy or proceeding
shall be barred after June 30, 2024.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An
offer in compromise under section 231-3(10) is pending; [and]
(4) During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer's return to the State the period of limitations on collection after
assessment would expire before the expiration of six months from the date of
the taxpayer's return, the period shall not expire before the expiration of the
six months[.]; and
(5) An appeal of the assessment is pending before the taxation board of review or the tax appeal court, beginning on the date the notice of appeal is filed and concluding on the date a final decision is issued or the case is withdrawn or dismissed.
As to all tax payments for which a refund or credit is not authorized by this section (including, without prejudice to the generality of the foregoing, cases of unconstitutionality), the remedies provided by appeal or by section 40-35 are exclusive."
SECTION 6. Section 247-6.5, Hawaii Revised Statutes, is amended to read as follows:
"§247-6.5 Limitation period for assessment, levy,
collection, or credit. The amount of
conveyance taxes imposed by this chapter shall be assessed or levied, and the
overpayment, if any, shall be credited within three years after filing of the
certificate prescribed by section 247-6.
No proceeding in court without assessment for the collection of the
taxes shall be begun after the expiration of the three-year period. Where the assessment of the tax imposed by
this chapter has been made within the period of limitation applicable thereto,
the tax may be collected by levy or by a proceeding in court under chapter 231;
provided that the levy is made or the proceeding was begun within fifteen years
after the assessment of the tax. For any
tax that has been assessed [prior to] before July 1, 2009, the
levy or proceeding shall be barred after June 30, 2024.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An
offer in compromise under section 231-3(10) is pending; [and]
(4) During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer's return to the State the period of limitations on collection after
assessment would expire before the expiration of six months from the date of
the taxpayer's return, the period shall not expire before the expiration of the
six months[.]; and
(5) An appeal of the assessment is pending before the taxation board of review or the tax appeal court, beginning on the date the notice of appeal is filed and concluding on the date a final decision is issued or the case is withdrawn or dismissed.
In the case of a false or fraudulent
certificate filed with the intent to evade tax, or of a failure to file a
certificate, the tax may be assessed or levied at any time."
SECTION 7. Section 251-8, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c)
Except as otherwise provided by this section, the amount of surcharge
taxes imposed by this chapter shall be assessed or levied within three years
after the annual return was filed, or within three years of the due date
prescribed for the filing of the return, whichever is later, and no proceeding
in court without assessment for the collection of any such surcharge taxes
shall begin after the expiration of the period.
Where the assessment of the tax imposed by this chapter has been made
within the period of limitation applicable thereto, the tax may be collected by
levy or by a proceeding in court under chapter 231; provided that the levy is
made or the proceeding was begun within fifteen years after the assessment of
the tax. For any tax that has been
assessed [prior to] before July 1, 2009, the levy or proceeding
shall be barred after June 30, 2024.
Notwithstanding any other provision to the contrary in this section, the limitation on collection after assessment in this section shall be suspended for the period:
(1) The taxpayer agrees to suspend the period;
(2) The assets of the taxpayer are in control or custody of a court in any proceeding before any court of the United States or any state, and for six months thereafter;
(3) An
offer in compromise under section 231-3(10) is pending; [and]
(4) During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer's return to the State
the period of limitations on collection after assessment would expire before
the expiration of six months from the date of the taxpayer's return, the period shall not
expire before the expiration of the six months[.]; and
(5) An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed."
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 3000, and shall suspend the statute of limitations on collections of assessments that were on appeal before the effective date of this Act, from the filing date of the notices of appeal to the conclusion, dismissal, or withdrawal of the appeals.
Report Title:
Collection of Taxes; Statute of Limitations; Tax Appeal; Taxation Board of Review
Description:
Suspends the statute of limitations on collections of income tax, general excise tax, transient accommodations tax, use tax, fuel tax, conveyance tax, and rental motor vehicle, tour vehicle, and car-sharing vehicle surcharge tax during the period an assessment is pending on appeal before the taxation board of review or tax appeal court. Effective 7/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.