Hawaii Revised Statutes 231. Administration of Taxes
GENERAL PROVISIONS
- 231-1 Definitions.
Whenever used in chapters of the law under title 14 administered by the department: "Assessor" or "assistant assessor" means the assessor or an assistant...
- 231-1.5 Confidentiality Privileges Relating to Taxpayer Communications.
Section 7525 (with respect to confidentiality privileges relating to taxpayer communications) of the Internal Revenue Code shall be operative for the purposes of this...
- 231-2 Taxation Districts.
For the purpose of taxation, the State is divided into four districts, viz.: (a) The city and county of Honolulu, to be called the...
- 231-3 Department, General Duties and Powers.
The department of taxation shall have the following duties and powers, in addition to any others prescribed or granted by this chapter: (1) Assessment:...
- 231-3.1 Consideration Paid Not Indicative of Fair Market Value.
Where sales are made by a taxpayer, taxable under title 14, to other affiliated companies or persons, or under other circumstances where the relation...
- 231-3.2 Repealed.
L 2007, c 9, §21.
- 231-3.4 Publication of Reports.
(a) The department of taxation shall publish reports on the following: (1) Hawaii income patterns--individuals; (2) Hawaii income patterns--businesses; (3) Tax credits; and (4)...
- 231-3.5 Suspension of Running of the Period of Limitation During Bankruptcy Proceedings.
The running of the periods of limitation provided under chapters of the law under title 14 administered by the department to the contrary notwithstanding,...
- 231-3.6 Streamlined Sales and Use Tax Agreement Compliance.
(a) A seller that registers to pay or collect and remit sales or use tax in accordance with the terms of the streamlined sales...
- 231-4 Assessing Officers Eligible to Appointment As Collecting Officers and Vice Versa.
Appointees to offices or positions in the department of taxation for the assessing of taxes shall be eligible for appointment to offices or positions...
- 231-4.3 Investigators; Appointment and Powers.
The director may appoint and commission one or more investigators as the exigencies of the public service may require. Persons appointed and commissioned under...
- 231-4.5 Administrative Rules Officer; Specialists; Appointment and Duties.
The director of taxation may appoint an administrative rules officer, and administrative rules specialists as necessary to assist the administrative rules officer. The administrative...
- 231-5 Deceased Officers, Duties of Personal Representatives, Etc.
The personal representatives of any deceased officer of the department of taxation, and all other persons into whose hands any tax lists, or records,...
- 231-6 Oath, Power to Administer.
The department of taxation may administer all oaths or affirmations required to be taken or be administered under chapters of the law under title...
- 231-7 Audits, Investigations, Hearings, and Subpoenas.
(a) The director of taxation, and any representative of the director duly authorized by the director, may conduct any civil audit or criminal investigation,...
- 231-7.5 Expedited Appeals and Dispute Resolution Program.
(a) The department shall be authorized to implement an administrative appeals and dispute resolution program that shall expeditiously resolve all tax, penalty, interest, fine,...
- 231-8 Timely Mailing Treated As Timely Filing and Paying.
(a) Any report, claim, tax return, statement, or other document required or authorized to be filed with or any payment made to the State...
- 231-8.5 Electronic Filing of Tax Returns.
The department may allow filing by electronic, telephonic, or optical means of any tax return, application, report, or other document required under the provisions...
- 231-8.6 Repealed.
L 2007, c 9, §22.
- 231-9 Tax Collection; General Duties, Powers of Director; Dollar Rounding.
(a) The director of taxation shall collect all taxes according to the assessments. The director of taxation shall duly and accurately account to the...
- 231-9.2 Offers in Compromise.
(a) Requests for compromises authorized under section 231-3 shall be submitted to the department and accompanied by the following: (1) In the case of a...
- 231-9.3 Tax Collection; Mainland Contractors Working on Federal Construction Projects.]
The director of taxation shall develop a system to determine when contractors from the United States mainland are present in Hawaii to work on federal...
- 231-9.4 Credit or Debit Card Remittances.]
In addition to sections 237-31, 237D-6.5, and 251-5, as well as any other form of payment allowed under provisions of title 14 administered by...
- 231-9.5 Assessment of Additional Taxes of Corporations or Partnerships.
Additional taxes of a corporation or partnership shall be assessed to it under its corporate or firm name. [L 1989, c 14, §1(2)]
- 231-9.6 Fiduciaries, Liability.
Every personal representative, trustee, guardian, or other fiduciary shall be answerable as such for the performance of all acts, matters, or things as are...
- 231-9.7 Informalities Not to Invalidate Assessments, Mistakes in Names or Notices, Etc.
No assessment or act relating to the assessment or collection of taxes shall be illegal nor shall such assessment, levy, or collection be invalid...
- 231-9.8 Tax Bills.
Each state tax collector shall mail, postage prepaid, or deliver to all known persons assessed taxes in the state tax collector's district, tax bills...
- 231-9.9 Filing and Payment of Taxes by Electronic Funds Transfer.
(a) The director of taxation is authorized to require every person whose tax liability for any one taxable year exceeds $100,000 and who files...
- 231-10 Department; Keep Offices Where.
The department of taxation shall keep offices in the several districts, for the convenience of the public business. [L 1932 2d, c 40, §59;...
- 231-10.5 Closing Audit Letters
. At the conclusion of a tax audit, the department shall provide to the taxpayer a closing audit letter that shall confirm in writing the...
- 231-10.6 Rules or Administrative Guidance.
Rules, including temporary rules, providing examples and safe harbors shall be implemented to explain in clear and unambiguous terms the penalties and fines provided...
- 231-10.7 Temporary Rulemaking Authority for Regulation of Tax Matters.
(a) Notwithstanding any other law in title 14, chapter 91, or chapter 201M to the contrary, the department is authorized to adopt any temporary...
- 231-10.8 Tax Clearance Fees.
The department may charge a fee of $20 for each tax clearance application submitted and $5 for each certified copy of a tax clearance. [L...
POLICE; DISTRICT JUDGES
DELINQUENT TAXES
RETURNS AND RECORDS, GENERALLY; VALIDITY
- 231-15 Returns to Be Signed.
Every return statement, or other document required to be made for taxation purposes shall be signed in accordance with forms or regulations prescribed by...
- 231-15.3 Signature Presumed Authentic.
The fact that an individual's name is signed on a return, statement, or other document shall be prima facie evidence for all purposes that...
- 231-15.5 Disclosure by Return Preparers.
Any person who is engaged in the business of preparing, or providing services in connection with the preparation of tax returns or any person...
- 231-15.6 Returns of Corporations or Partnerships.
The returns, statements, or answers required under chapters of the law under title 14 administered by the department, in the case of a corporation,...
- 231-15.7 Returns by Fiduciaries.
The returns, statements, or answers required under chapters of the law under title 14 administered by the department shall be made by the personal...
- 231-15.8 Time for Performing Certain Acts Postponed by Reason of Service in Combat Zone.
(a) This section shall apply to state tax laws set forth in this title 14 that provide for the filing with the director of...
- 231-16 Copies of Returns.
Except as otherwise provided by law, copies of any tax return filed with the department of taxation shall be furnished to the taxpayer filing...
- 231-17 Notices, How Given.
Unless otherwise provided, every notice, the giving of which by the department of taxation is required or authorized, shall be deemed to have been...
- 231-18 Tax and Other Officials Permitted to Inspect Returns; Reciprocal Provisions.
Notwithstanding the provisions of any law making it unlawful for any person, officer, or employee of the State to make known information imparted by...
- 231-19 Repealed.
L 1989, c 14, §20.
- 231-19.3 Disclosure of Letter Rulings, et al.
Notwithstanding any law to the contrary, any and all advice given or communications made by the department, including but not limited to letter rulings...
- 231-19.5 Public Inspection and Copying of Written Opinions.
(a) Written opinions shall be open to public inspection and copying as provided in this section, notwithstanding sections 235-116, 236D-15, 237-34, and 237D-13 and...
- 231-20 Evidence, Tax Records As.
In respect of every tax the administration of which is within the scope of the department of taxation's duties and except as otherwise specifically...
- 231-21 Due Date on Saturday, Sunday, or Holiday.
When the due date for any remittance or document required by any law imposing a tax falls on a Saturday, Sunday, or legal holiday,...
- 231-21.5 Effect of Civil Union.
All provisions of the Internal Revenue Code referred to in this chapter that apply to a husband and wife, spouses, or person in a...
ADJUSTMENTS AND REFUNDS
JEOPARDY ASSESSMENTS
- 231-24 Jeopardy Assessments, Etc.
(a) If the department of taxation determines that a taxpayer designs to depart quickly from the State, or to remove the taxpayer's property therefrom,...
COLLECTION PROCEEDINGS
- 231-25 Payment, Enforcement of by Assumpsit Action or by Levy and Distraint Upon All Property and Rights to Property.
(a) If any tax be unpaid when due, the director of taxation may proceed to enforce the payment of the same, with all penalties,...
- 231-25.5 Cost Recovery Fees for the Administration of Taxes.
(a) The department may charge and add a fee to any amount due in accordance with the department's duties and powers under section 231-3...
- 231-26 Extraterritorial Enforcement of Tax Laws.
(a) The courts of the State shall recognize and enforce the liability for taxes lawfully imposed by the laws of any state which extends...
- 231-27 Partial Payment of Taxes.
Whenever a taxpayer makes a partial payment of a particular assessment of taxes, the amount received by the department of taxation shall first be...
- 231-28 Tax Clearance Before Procuring Liquor Licenses.
No liquor licenses shall be issued or renewed unless the applicant therefor shall present to the issuing agency, a certificate signed by the director...
- 231-29 Joinder of Party Defendant When State Claims Tax Liens.
The director of taxation (or in the case of a lien under chapter 383, the director of labor and industrial relations) may be named...
- 231-30 Unknown or Nonresident Delinquents; Procedure to Collect Taxes From.
Notwithstanding section 604-7(c): (1) Unknown persons. In all cases where taxes assessed to persons unknown are delinquent and unpaid when due, action may be...
- 231-31 Nonresidents Engaged in Business, Etc., Service of Process On, Designation of Agent for Service of Process.
Every nonresident individual who, jointly, severally, or jointly and severally, is subject to a tax upon the gross or net income from, or sales...
- 231-32 Records of Delinquent Taxes, Uncollectible Delinquent Taxes.
The department of taxation shall prepare and maintain, open to public inspection, a complete record of the amounts of taxes assessed in each district...
- 231-33 Tax Debt Due the State; Lien.
(a) Within the meaning of this section: (1) The terms "mortgagee", "pledgee", and "purchaser" do not include any person to whom property or an...
PENALTIES AND INTEREST
- 231-34 Attempt to Evade or Defeat Tax.
Part heading amended by L 1995, c 92, §3. §231-34 Attempt to evade or defeat tax. Any person who wilfully attempts in any manner...
- 231-35 Wilful Failure to File Return, Supply Information, or Secure a License.
Part heading amended by L 1995, c 92, §3. §231-35 Wilful failure to file return, supply information, or secure a license. Any person required...
- 231-36 False and Fraudulent Statements; Aiding and Abetting.
Part heading amended by L 1995, c 92, §3. §231-36 False and fraudulent statements; aiding and abetting. (a) Any person who wilfully makes and...
- 231-36.4 Wilful Failure to Collect and Pay Over Tax.
Part heading amended by L 1995, c 92, §3. [§231-36.4] Wilful failure to collect and pay over tax. Any person required to collect, account...
- 231-36.5 Understatement of Taxpayer's Liability by Tax Return Preparer.
Part heading amended by L 1995, c 92, §3. [§231-36.5] Understatement of taxpayer's liability by tax return preparer. (a) A tax return preparer who...
- 231-36.6 Substantial Understatements or Misstatements of Amounts; Penalty.
Part heading amended by L 1995, c 92, §3. [§231-36.6] Substantial understatements or misstatements of amounts; penalty. (a) There shall be added to the...
- 231-36.7 Promoting Abusive Tax Shelters.
Part heading amended by L 1995, c 92, §3. [§231-36.7] Promoting abusive tax shelters. (a) A person promotes an abusive tax shelter by: (1)...
- 231-36.8 Erroneous Claim for Refund or Credit.
Part heading amended by L 1995, c 92, §3. §231-36.8 Erroneous claim for refund or credit. (a) If a claim for refund or credit...
- 231-37 Neglect of Duty, Etc., Misdemeanor.
Part heading amended by L 1995, c 92, §3. §231-37 Neglect of duty, etc., misdemeanor. Any officer of the department of taxation, the state...
- 231-38 Repealed.
Part heading amended by L 1995, c 92, §3. §231-38 REPEALED. L 1995, c 92, §21.
- 231-39 Additions to Taxes for Noncompliance or Evasion; Interest on Underpayments and Overpayments.
Part heading amended by L 1995, c 92, §3. §231-39 Additions to taxes for noncompliance or evasion; interest on underpayments and overpayments. (a) Except...
- 231-40 Interpretation.
Part heading amended by L 1995, c 92, §3. §231-40 Interpretation. Sections 231-34, 231-35, 231-36, and 231-36.4 shall be construed in accordance with judicial...
- 231-40.5 Statute of Limitations; Extension for Substantial Omissions.
Part heading amended by L 1995, c 92, §3. [§231-40.5] Statute of limitations; extension for substantial omissions. (a) Notwithstanding any other law to the...
- 231-41 Statute of Limitation for Criminal Penalties.
Part heading amended by L 1995, c 92, §3. §231-41 Statute of limitation for criminal penalties. Notwithstanding any laws to the contrary, prosecutions under...
RECOVERY OF MONEY OWED TO THE STATE
- 231-51 Purpose.
The purpose of sections 231-52 to 231-59 is to permit the retention of state income tax refunds of those persons who owe a debt...
- 231-52 Definitions.
As used in sections 231-51 to 231-59, unless the context otherwise requires: "Claimant agency" includes any state agency, board, commission, department, institution, the judiciary,...
- 231-53 Setoff Against Refund.
The State, through the department of accounting and general services, upon request of a claimant agency, shall set off any valid debt due and...
- 231-54 Hearings; Appeals.
At the time a setoff is identified, the debtor shall be notified by the comptroller, department of accounting and general services, of the State's...
- 231-55 Finalization of Setoff; Credit on Debt.
Upon completion of the hearing and appeal process set out in section 231-54, or upon the debtor's failure to timely request a hearing pursuant...
- 231-56 Charges for Setoff; Credit to Agency.
The State may charge the claimant agency for the cost of the setoff; provided that the charges shall not exceed the proceeds of the...
- 231-57 Apportionment of Joint Refunds.
In the case of a setoff against a joint income tax refund, the State may make separate refunds of withheld taxes upon request by...
- 231-57.5 Notification of Address and Social Security Number of Debtor Parent.
The department of accounting and general services shall notify the child support enforcement agency of the address and social security number of each debtor...
- 231-58 Rules.
All state agencies may adopt rules pursuant to chapter 91 for carrying out the purposes of sections 231-51 to 231-59. [L 1982, c 199,...
- 231-59 Procedure Additional.
The setoff procedure authorized by sections 231-53 to 231-57 is in addition to and not in substitution of any other remedy available by law....
LIENS, FORECLOSURE
- 231-61 Tax Liens; Co-Owners' Rights.
(a) If a cotenancy exists and within the period of a tax lien, all of the taxes, interest, penalties, and other additions to the...
- 231-62 Tax Liens; Foreclosure; Property.
(a) Upon enforcement or foreclosure by the State, in any manner whatsoever, of any state tax lien on real property, all state taxes of...
- 231-63 Tax Liens; Foreclosure Without Suit, Notice.
All real property on which a lien for state taxes exists may be sold by way of foreclosure without suit by the state tax...
- 231-64 Tax Liens; Registered Land.
If the land has been registered in the land court, the state tax collector shall also send by registered mail a notice of the...
- 231-65 Tax Liens; Notice, Form Of.
The notice of sale shall contain the names of the persons assessed, the names of the present owners (so far as shown by the...
- 231-66 Tax Liens; Postponement of Sale, Etc.
If at the time appointed for the sale the state tax collector deems it expedient and for the interest of all persons concerned therein...
- 231-67 Tax Liens; Tax Deed; Redemption.
The state tax collector or the state tax collector's assistant, on payment of the purchase price, shall make, execute, and deliver all proper conveyances...
- 231-68 Tax Liens; Costs.
The director of taxation by rule may prescribe a schedule of costs, expenses, and charges and the manner in which they shall be apportioned...
- 231-69 Tax Deed As Evidence.
The tax deed referred to in section 231-67 is prima facie evidence that: (1) The property described by the deed on the date of...
- 231-70 Disposition of Surplus Moneys.
(a) The officer charged with the duty of distributing the surplus arising from a tax sale under sections 231-63 to 231-68 shall pay from...
CIVIL COMPLIANCE; SPECIAL ENFORCEMENT SECTION
- 231-81 Special Enforcement Section; Created.
[(a)] There is created within the department of taxation the special enforcement section to carry out civil enforcement efforts as directed by the director...
- 231-82 Special Enforcement Section; Functions, Powers, and Duties.
The special enforcement section shall have the following functions, powers, and duties: (1) Investigate reported or suspected violations of tax laws for civil enforcement...
- 231-83 Investigators and Personnel, Appointment and Power.
(a) The director of taxation may appoint, commission, or detail to the special enforcement section one or more persons as investigators, investigator assistants, and...
- 231-84 Right to Inspection of Books, Records, and Premises; Warrants and Writs; Levy and Seizure.
(a) Upon presenting credentials, the special enforcement section may examine any books, papers, records, and any article or item of business transacted of any...
- 231-85 Identification of Cash Economy Cases; Retention of Funds.
Notwithstanding any law to the contrary, each fiscal year, the special enforcement section may identify any taxpayer, assessment, investigation, or collection matter as a...
- 231-86 Violent Interference With a Tax Official.
Any person who interferes, hinders, obstructs, prevents, or impedes any investigator or employee of the department with violence or threat of violence, shall be...
CASH ECONOMY ENFORCEMENT; CITATIONS
- 231-91 Citations for Violations; Deposits.
(a) The special enforcement section may issue cease and desist citations to any person if the special enforcement section has cause to believe the...
- 231-92 Cash-Based Businesses; Injunction.
The special enforcement section, with the director of taxation's approval, may bring civil actions in the circuit court where the cash-based business is located...
- 231-93 Cash-Based Business; Defined.
For purposes of sections 231-91 to 231-100, "cash-based business" means any person who operates a business, including for-profit or not-for-profit, where transactions in goods...
- 231-94 Failure to Produce License Upon Demand.
Every person required to be licensed or permitted under title 14, whether or not so licensed or permitted, shall be required to produce the...
- 231-95 Failure to Keep Adequate Books and Records.
It shall be unlawful for any person required under title 14 to keep books or records to fail to produce the books or records...
- 231-96 Failure to Record Transaction.
(a) It shall be unlawful for any person doing business under chapter 237, other than casual sales, to conduct any transaction in cash and...
- 231-97 Repealed.
L 2011, c 102, §2.
- 231-98 Tax Avoidance Price Fixing.
It shall be unlawful for any person to sell, offer to sell, or otherwise convey more than one price for any business to be...
- 231-99 Possession of Currency for Tax Avoidance Purposes.
It shall be unlawful for any person engaged in business in this State to possess currency in the form of coin or note, where...
- 231-100 Interference With a Tax Official.
It is unlawful for any person to intentionally interfere with, hinder, obstruct, prevent, or impede any investigator, auditor, collector, or other employee of the...
Last modified: October 27, 2016