Haw. Rev. Stat. § 237-33.5 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-33.5
Federal assessments; adjustments of gross income or gross proceeds of sale; report to the department.
Status: in_force

(a) Any person required to report to the department by section 235-101(b), also shall report to the department any change, correction, adjustment, or recomputation of gross income or gross proceeds of sale subject to the tax imposed by this chapter. This report shall be made in the form of a return amending the person's gross income or gross proceeds of sale as previously reported on a return filed with the department for the taxable year. If no return has been filed with the department for the taxable year, a return shall be filed and shall take into account any change, correction, adjustment, or recomputation of gross income or gross proceeds of sale.

(b) Any return or amended return required by this section shall be filed with the department within ninety days after the change, correction, adjustment, or recomputation is finally determined or an amended return is filed with the Internal Revenue Service. The return or amended return shall be accompanied by a copy of the document issued by the United States notifying the taxpayer of the change, correction, adjustment, or recomputation.

(c) The statutory period for the assessment of any deficiency or the determination of any refund attributable to the report required by this section shall not expire before the expiration of one year from the date the department is notified by the taxpayer or the Internal Revenue Service, whichever is earlier, of such a report as provided in subsection (a). Before the expiration of this one-year period, the department and the taxpayer may agree, in writing, to the extension of this period. The period so agreed upon may be further extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. [L 1993, c 32, §1]
Haw. Rev. Stat. § 235-102 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-102
Records and special returns.
Status: in_force

(a) Records. Every person liable to any tax imposed by this chapter or for the collection or deduction thereof at source, shall keep full, complete, regular, and accurate books of account in which all the person's transactions shall be entered in regular order; provided that the director of taxation may, by regulation, provide for the keeping of simpler accounts in cases where, by reason of the smallness of the income or otherwise, undue hardship or expense will be caused by the keeping of full books of account. All books of account required to be kept by this chapter shall be preserved for a period of three years, except that the director may, in writing, consent to their destruction within such period or may require that they be kept longer.

(b) Special returns and statements. Whenever it is necessary, in the judgment of the director, the director may require any taxpayer, or person liable for the collection or deduction of tax at source, by notice served upon the taxpayer or other person, to make such returns or render such signed statements as the director deems sufficient to show whether or not the taxpayer or other person is liable under this chapter. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §4(a); Supp, §121-36; HRS §235-102; am L 1969, c 274, §1; gen ch 1985]
Haw. Rev. Stat. § 245-35 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-35
Unlicensed possession or use of stamps.
Status: in_force

A person who is not licensed under this chapter and who knowingly [possesses] or uses a stamp shall be guilty of a class B felony.
Haw. Rev. Stat. § 245-38 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-38
Vending unstamped cigarettes.
Status: in_force

(a) Beginning April 1, 2001, any person who knowingly places for sale in a cigarette vending machine any cigarettes not contained in cigarette packages to which are affixed stamps as required by this part, shall be guilty of a class C felony.

(b) In addition to any other authorized disposition, a corporation found in violation of subsection (a) may be fined in an amount not to exceed $50,000. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]
Haw. Rev. Stat. § 255-2 — HI Code / Division 1 / Title 14 / Chapter 255 / Section 255-2
Representation on multistate commission.
Status: in_force

[§255-2 Representation on multistate commission.] The director of taxation, or the director's designee, shall represent the State on the Multistate Tax Commission. The attorney general, or the attorney general's designee, shall act as an alternate for the director of taxation.
Haw. Rev. Stat. § 235-110.9 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-110.9
High technology business investment tax credit.
Status: in_force

(a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a high technology business investment tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the investment was made and the following four years provided the credit is properly claimed. The tax credit shall be as follows:

(1) In the year the investment was made, thirty-five per cent;

(2) In the first year following the year in which the investment was made, twenty-five per cent;

(3) In the second year following the investment, twenty per cent;

(4) In the third year following the investment, ten per cent; and

(5) In the fourth year following the investment, ten per cent;

of the investment made by the taxpayer in each qualified high technology business, up to a maximum allowed credit in the year the investment was made, $700,000; in the first year following the year in which the investment was made, $500,000; in the second year following the year in which the investment was made, $400,000; in the third year following the year in which the investment was made, $200,000; and in the fourth year following the year in which the investment was made, $200,000.

(b) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year. For the purpose of this section, "net income tax liability" means net income tax liability reduced by all other credits allowed under this chapter.

(c) If the tax credit under this section exceeds the taxpayer's income tax liability for any of the five years that the credit is taken, the excess of the tax credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(d) If at the close of any taxable year in the five-year period in subsection (a):

(1) The business no longer qualifies as a qualified high technology business;

(2) The business or an interest in the business has been sold by the taxpayer investing in the qualified high technology business; or

(3) The taxpayer has withdrawn the taxpayer's investment wholly or partially from the qualified high technology business;

the credit claimed under this section shall be recaptured. The recapture shall be equal to ten per cent of the amount of the total tax credit claimed under this section in the preceding two taxable years. The amount of the credit recaptured shall apply only to the investment in the particular qualified high technology business that meets the requirements of paragraph (1), (2), or (3). The recapture provisions of this subsection shall not apply to a tax credit claimed for a qualified high technology business that does not fall within the provisions of paragraph (1), (2), or (3). The amount of the recaptured tax credit determined under this subsection shall be added to the taxpayer's tax liability for the taxable year in which the recapture occurs under this subsection.

(e) Every taxpayer, before March 31 of each year in which an investment in a qualified high technology business was made in the previous taxable year, shall submit a written, certified statement to the director of taxation identifying:

(1) Qualified investments, if any, expended in the previous taxable year; and

(2) The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year.

(f) The department shall:

(1) Maintain records of the names and addresses of the taxpayers claiming the credits under this section and the total amount of the qualified investment costs upon which the tax credit is based;

(2) Verify the nature and amount of the qualifying investments;

(3) Total all qualifying and cumulative investments that the department certifies; and

(4) Certify the amount of the tax credit for each taxable year and cumulative amount of the tax credit.

Upon each determination made under this subsection, the department shall issue a certificate to the taxpayer verifying information submitted to the department, including qualifying investment amounts, the credit amount certified for each taxable year, and the cumulative amount of the tax credit during the credit period. The taxpayer shall file the certificate with the taxpayer's tax return with the department.

The director of taxation may assess and collect a fee to offset the costs of certifying tax credits claims under this section. All fees collected under this section shall be deposited into the tax administration special fund established under section 235-20.5.

(g) As used in this section:

"Investment tax credit allocation ratio" means, with respect to a taxpayer that has made an investment in a qualified high technology business, the ratio of:

(1) The amount of the credit under this section that is, or is to be, received by or allocated to the taxpayer over the life of the investment, as a result of the investment; to

(2) The amount of the investment in the qualified high technology business.

"Qualified high technology business" means a business, employing or owning capital or property, or maintaining an office, in this State; provided that:

(1) More than fifty per cent of its total business activities are qualified research; and provided further that the business conducts more than seventy-five per cent of its qualified research in this State; or

(2) More than seventy-five per cent of its gross income is derived from qualified research; and provided further that this income is received from:

(A) Products sold from, manufactured in, or produced in this State; or

(B) Services performed in this State.

"Qualified research" means the same as defined in section 235-7.3.

(h) Common law principles, including the doctrine of economic substance and business purpose, shall apply to any investment. There exists a presumption that a transaction satisfies the doctrine of economic substance and business purpose to the extent that the special allocation of the high technology business tax credit has an investment tax credit ratio of 1.5 or less of credit for every dollar invested.

Transactions for which an investment tax credit allocation ratio greater than 1.5 but not more than 2.0 of credit for every dollar invested and claimed may be reviewed by the department for applicable doctrines of economic substance and business purpose.

Businesses claiming a tax credit for transactions with investment tax credit allocation ratios greater than 2.0 of credit for every dollar invested shall substantiate economic merit and business purpose consistent with this section.

(i) For investments made on or after May 1, 2009, notwithstanding any other law to the contrary, no allocations, special or otherwise, of credits under this section may exceed the amount of the investment made by the taxpayer ultimately claiming this credit; and investment tax credit allocation ratios greater than 1.0 of credit for every dollar invested shall not be allowed. In addition, the credit shall be allowed only in accordance with subsection (a).

(j) This section shall not apply to taxable years beginning after December 31, 2010. [L 1999, c 178, §24; am L 2000, c 297, §8; am L 2001, c 221, §9; am L 2004, c 215, §8; am L 2007, c 206, §§4, 8; am L 2009, c 178, §4; am L 2017, c 3, §1]
Haw. Rev. Stat. § 235-62 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-62
Return and payment of withheld taxes.
Status: in_force

(a) Every employer required by this chapter to withhold taxes on wages paid in any quarter of the calendar year shall make a return of such wages to the department of taxation on or before the fifteenth day of the calendar month following the close of each such quarter for which the taxes have been withheld.

(b) The return shall be in the form, including computer printouts or other electronic formats, and contain the information prescribed by the director of taxation. The return shall be filed in the form and manner prescribed by the department.

(c) Every return required under this section shall be accompanied by a remission of the complete amount of tax withheld, as reported in the return; provided that each employer whose liability for taxes withheld exceeds $40,000 annually shall remit the complete amount of tax withheld on a semi-weekly schedule; provided further that each employer whose liability for taxes withheld exceeds $5,000 but does not exceed $40,000 annually shall remit the complete amount of tax withheld on a monthly schedule. Notwithstanding the tax liability threshold in this subsection, the director of taxation is authorized to require any employer who is required to remit any withheld taxes to the federal government on a semi-weekly schedule, to remit the complete amount of tax withheld to the department on a semi-weekly schedule. The director of taxation may grant an exemption to the requirement to remit the complete amount of tax withheld on a semi-weekly schedule for good cause.

(d) If the director believes collection of the tax may be in jeopardy, the director may require any person required to make a return under this section to make such return and pay such tax at any time.

(e) The director, for good cause, may extend the time for making returns and payments, but not beyond the fifteenth day of the second month following the regular due date of the return. With respect to wages paid out of public moneys, the director, in the director's discretion, may prescribe special forms for, and different procedures and times for the filing of, the returns by employers paying the wages, or may waive the filing of any returns upon the conditions and subject to rules the director may prescribe.

(f) For purposes of this section, "semi-weekly schedule" means:

(1) On or before the following Wednesday if wages were paid on the immediately preceding Wednesday, Thursday, or Friday; or

(2) On or before the following Friday if wages were paid on the immediately preceding Saturday, Sunday, Monday, or Tuesday.

In addition to the allowances provided under section 231-21, each employer shall have at least three banking days following the close of the semi-weekly period by which to remit the taxes withheld as provided for in section 6302 of the Internal Revenue Code.

(g) For the purposes of this section, "monthly schedule" means on or before the fifteenth day of the calendar month following the month for which the taxes have been withheld. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; am L 1964, c 24, §2; Supp, §121-17; am L 1966, c 19, §3; am L 1967, c 26, §2 and c 37, §1; HRS §235-62; am L 1970, c 37, §2; am L 1980, c 211, §2; am L 1981, c 138, §2; gen ch 1985; am L 1992, c 38, §1; am L Sp 2001 3d, c 8, §2; am L 2004, c 113, §3; am L 2005, c 27, §2; am L 2009, c 196, §3; am L 2017, c 7, §2; am L 2021, c 117, §8]
Haw. Rev. Stat. § 235-23 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-23
Taxable in another state.
Status: in_force

For purposes of allocation and apportionment of income under this part, a taxpayer is taxable in another state if:

(1) In that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or

(2) That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not. [L 1967, c 33, pt of §1; HRS §235-23; gen ch 1985]
Haw. Rev. Stat. § 231-53 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-53
Setoff against refund.
Status: in_force

The State, through the department of accounting and general services or the department of taxation, upon request of a claimant agency, shall set off any valid debt due and owing a claimant agency by the debtor against any debtor's refund. Any amount of the refund in excess of the amount retained to satisfy the debt shall be refunded to the debtor.
Haw. Rev. Stat. § 235-125 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-125
Carryforwards and carrybacks; loss limitation.
Status: in_force

(a) Carryforwards and carrybacks to and from taxable periods of an S corporation shall be restricted in the manner provided in section 1371(b) of the Internal Revenue Code.

(b) The aggregate amount of losses or deductions of an S corporation taken into account by a shareholder pursuant to section 235-122(c) shall not exceed the combined adjusted bases, determined in accordance with section 235-124, of the shareholder in the stock and indebtedness of the S corporation.

(c) Any loss or deduction which is disallowed for a taxable period pursuant to subsection (b) shall be treated as incurred by the corporation in the succeeding taxable period with respect to the shareholder.

(d)(1) Any loss or deduction which is disallowed pursuant to subsection (b) for the corporation's last taxable period as an S corporation shall be treated as incurred by a shareholder on the last day of any post-termination transition period.

(2) The aggregate amount of losses and deductions taken into account by a shareholder pursuant to paragraph (1) shall not exceed the adjusted basis of the shareholder in the stock of the corporation (determined in accordance with section 235-124 at the close of the last day of any post-termination transition period and without regard to this subsection). [L 1990, c 16, pt of §1]
Haw. Rev. Stat. § 237-3 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-3
"Gross income", "gross proceeds of sale", defined.
Status: in_force

(a) "Gross income" means the gross receipts, cash or accrued, of the taxpayer received as compensation for personal services and the gross receipts of the taxpayer derived from trade, business, commerce, or sales and the value proceeding or accruing from the sale of tangible personal property, or service, or both, and all receipts, actual or accrued as hereinafter provided, by reason of the investment of the capital of the business engaged in, including interest, discount, rentals, royalties, fees, or other emoluments however designated and without any deductions on account of the cost of property sold, the cost of materials used, labor cost, taxes, royalties, interest, or discount paid or any other expenses whatsoever. Every taxpayer shall be presumed to be dealing on a cash basis unless the taxpayer proves to the satisfaction of the department of taxation that the taxpayer is dealing on an accrual basis and the taxpayer's books are so kept, or unless the taxpayer employs or is required to employ the accrual basis for the purposes of the tax imposed by chapter 235 for any taxable year in which event the taxpayer shall report the taxpayer's gross income for the purposes of this chapter on the accrual basis for the same period.

"Gross proceeds of sale" means the value actually proceeding from the sale of tangible personal property without any deduction on account of the cost of property sold or expenses of any kind.

(b) The words "gross income" and "gross proceeds of sales" shall not be construed to include: gross receipts from the sale of securities as defined in 15 United States Code section 78c or similar laws of jurisdictions outside the United States, contracts for the sale of a commodity for future delivery and other agreements, options, and rights as defined in 7 United States Code section 2 that are permitted to be traded on a board of trade designated by the Commodities Futures Trading Commission under the Commodity Exchange Act, or evidence of indebtedness or, except as otherwise provided, from the sale of land in fee simple, improved or unimproved, dividends as defined by chapter 235; cash discounts allowed and taken on sales; the proceeds of sale of goods, wares, or merchandise returned by customers when the sale price is refunded either in cash or by credit; or the sale price of any article accepted as part payment on any new article sold, if the full sale price of the new article is included in the "gross income" or "gross proceeds of sales"; gross receipts from the sale or transfer of materials or supplies, interest on loans, or the provision of engineering, construction, maintenance, or managerial services by one "member" of an "affiliated public service company group" to another "member" of the same group as such terms are defined in section 239-2. Accounts found to be worthless and actually charged off for income tax purposes may be deducted, at corresponding periods, from gross proceeds of sale, or gross income, within this chapter, so far as they reflect taxable sales made, or gross income earned, after July 1, 1935, but shall be added to gross proceeds of sale or gross income when and if afterwards collected.

(c) For purposes of the tax imposed by this chapter, a taxpayer under section 237-13(3) may report on a cash basis; provided the taxpayer notifies the department of taxation of the basis upon which the tax imposed by this chapter is to be reported. [L 1935, c 141, pt of §1; am L 1941, c 265, §1(a); RL 1945, §5444; RL 1955, §117-3; am L Sp 1957, c 1, §3(a); am L Sp 1959 2d, c 1, §16; HRS §237-3; am L 1977, c 26, §2; gen ch 1985; am L 1988, c 295, §2; am L 1989, c 118, §1; am L 1997, c 178, §3; am L 2000, c 262, §2]
Haw. Rev. Stat. § 235-32 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-32
Apportionment; property factor; average value.
Status: in_force

The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the director of taxation may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.
Haw. Rev. Stat. § 245-33 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-33
Unused stamps; cancellation of stamps.
Status: in_force

The department shall adopt rules for a refund or credit to a licensee in the amount of the denominated values less any discount applied pursuant to section 245-22(e) of any unused stamps. The department may provide by rule for the cancellation of stamps.
Haw. Rev. Stat. § 235-69 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-69
Voluntary deduction and withholding of state income tax from unemployment compensation.
Status: in_force

An individual receiving unemployment compensation benefits under chapter 383 may elect to have state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of five per cent in accordance with section 383-163.6.
Haw. Rev. Stat. § 237-16.8 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-16.8
Exemption of certain convention, conference, and trade show fees.
Status: in_force

In addition to any other applicable exemption provided under this chapter, there shall be exempted from the measure of taxes imposed by this chapter all of the value or gross income derived by a fraternal benefit, religious, charitable, scientific, educational, or other nonprofit organization under section 501(c) of the Internal Revenue Code of 1986, as amended, from fees for convention, conference, or trade show exhibit or display spaces; provided that the gross proceeds of sales by a vendor through the use of exhibit or display space at a conference, convention, or trade show shall be subject to the imposition of the general excise tax under section 237-13.
Haw. Rev. Stat. § 231-52 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-52
Definitions.
Status: in_force

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, or other state organization, or any subdivision thereof. In the case of delinquent child support pursuant to section 576D-1, "claimant agency" means the child support enforcement agency or an agency under cooperative agreement with the department whenever the department is required by law to enforce a support order on behalf of an individual. "Claimant agency" includes the department of budget and finance when acting on behalf and at the request of the United Student Aid Funds, Inc. to collect defaulted education loan notes incurred under the federal Higher Education Act of 1965 (Public Law 89-329, 79 Stat. 1219), as amended; provided that the department has a contract with the United Student Aid Funds, Inc. under chapter 309 when acting as a claimant agency. "Claimant agency" includes the department of taxation when acting on behalf and at the request of the Internal Revenue Service under the United States Department of the Treasury, and when the Internal Revenue Service is authorized by federal law to administratively impose a levy upon a refund of a debt or in satisfaction of the federal income taxes assessed under [the] Internal Revenue Code of 1986, as amended.

"Debt" includes:

(1) Any delinquency in periodic court-ordered or administrative-ordered payments for child support pursuant to section 576D-1, in an amount equal to or exceeding the sum of payments which would become due over a one-month period;

(2) Any liquidated sum exceeding $25 which is due and owing any claimant agency, regardless of whether there is an outstanding judgment for that sum, and whether the sum has accrued through contract, subrogation, tort, operation of law, or judicial or administrative judgment or order;

(3) Any defaulted education loan note held by the United Student Aid Funds, Inc. incurred under the federal Higher Education Act of 1965 (Public Law 89-329, 79 Stat. 1219), as amended;

(4) Any federal income taxes due and owing to the United States Treasurer;

(5) Any medicaid overpayment under section 346-59.6; or

(6) Any unpaid court-ordered restitution enforceable as a civil judgment pursuant to section 706-647.

"Debtor" includes any person who owes a debt to any claimant agency, who is delinquent in payment of court-ordered or administrative-ordered child support payments, pursuant to section 576D-1, who has defaulted on an education loan note held by the United Student Aid Funds, Inc. incurred under the federal Higher Education Act of 1965 (Public Law 89-329, 79 Stat. 1219), as amended, or who owes federal income taxes to the United States Treasurer.

"Refund" includes any state income tax refund which is or will be due any debtor, or any other sums due to a debtor from the State. [L 1982, c 199, pt of §1; am L 1985, c 256, §2; am L 1986, c 87, §2 and c 332, §5; am L 1987, c 112, §1; am L 1988, c 199, §2; am L 1998, c 66, §1, c 153, §2, and c 293, §4; am L 2017, c 77, §3]
Haw. Rev. Stat. § 251-12 — HI Code / Division 1 / Title 14 / Chapter 251 / Section 251-12
Disclosure of returns unlawful; destruction of returns.
Status: in_force

(a) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the auditor or the auditor's agent with regard to tax return information obtained pursuant to section 23-5(a), to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any tax return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for surcharge tax purposes only the lessor or tour vehicle operator, the lessor's or tour vehicle operator's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:

(1) Trustees;

(2) Partners;

(3) Persons named in a board resolution or a one per cent shareholder in the case of a corporate return;

(4) The person authorized to act for a corporation in dissolution;

(5) The shareholder of an S corporation;

(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in the case of the estate's or decedent's return;

(7) The committee, trustee, or guardian of any person in paragraphs (1) through (6) who is incompetent;

(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) through (7);

(9) Persons duly authorized by the State in connection with their official duties;

(10) Any duly accredited tax official of the United States or of any state or territory;

(11) The Multistate Tax Commission or its authorized representative; and

(12) Members of a limited liability company.

Any violation of this subsection shall be a class C felony. Nothing in this subsection shall prohibit the publication of statistics that are classified to prevent the identification of particular reports or returns and the items of the reports or returns.

(b) The department may destroy the monthly, quarterly, or semiannual returns filed pursuant to section 251-4, or any of them, upon the expiration of three years after the end of the calendar or fiscal year in which the surcharge taxes so returned accrued. [L 1991, c 263, pt of §1; am L 1997, c 178, §10; am L 2014, c 136, §7]
Haw. Rev. Stat. § 249-9.3 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-9.3
Special number plates; design and issuance by counties.
Status: in_force

(a) In lieu of the number plates contracted on behalf of the counties by the director of finance of the city and county of Honolulu, the county directors of finance shall issue special number plates to any organization in the State that meets the minimum standards and qualifications established under this section. Organizations are authorized to retain the fees collected, less expenses, for the special number plates.

The director of finance of the city and county of Honolulu, in consultation with the directors of finance of the counties of Kauai, Maui, and Hawaii, shall establish special design parameters and restrictions for decals or graphic representations affixable to special number plates; provided that the decal shall not be larger than four inches wide by four inches high.

(b) For the purposes of this section, the following terms shall have the following meanings:

"Director" unless indicated otherwise by its context, means the county directors of finance.

"Organization" means:

(1) A not-for-profit organization recognized as such by the Internal Revenue Service and whose primary purpose is to provide the community with specific programs to improve the public's health, education, or general welfare;

(2) A military service veterans group;

(3) A state or county agency approved by the director; or

(4) Any school or accredited institution of higher learning or a college or recognized program thereof.

"Special number plate" means a license plate with a decal on its face that represents an organization as defined in this section.

(c) Organizations as defined under subsection (b) may apply for a special number plate with the director. The organization shall design a decal to be placed on the license plate that represents the organization and complies with this section.

All organizations shall be headquartered in the State; provided that an organization that is a chapter or branch of an international, national, or regional organization shall be in good standing and authorized in writing by the parent organization to use the decal design applied for by the organization.

(d) An organization shall apply for a special number plate with the director on an application form prescribed by the director. The application shall include:

(1) A design of the organization's decal;

(2) A signed notarized statement by an officer or director of the organization that the organization will acquire at least one hundred fifty special number plates; and

(3) The dollar amount the organization plans to raise from each special number plate.

The director shall determine, based on criteria in this section, and the director's discretion, whether an organization's application has been accepted or rejected. The director shall also seek the approval of an organization's decal design from the county chief of police where the application is made.

If the director rejects an application, the director shall state the reasons for the rejection in writing and shall allow the applicant to reapply within a reasonable period after the rejection.

After an organization's application has been approved, a motor vehicle owner may apply for the organization's special number plate. The director may require the completion of a form as prescribed by the director. Special number plates shall be issued only to the registered owner of an applicant motor vehicle.

(e) The design of the decal used on an organization's special number plate shall not:

(1) Infringe or otherwise violate any trademark, trade name, service mark, copyright, or other proprietary or property right;

(2) Represent any obscene or degrading image, idea, word, or phrase;

(3) Advertise or endorse a product, brand, or service that is provided for sale;

(4) Promote any religious belief; or

(5) Promote any philosophy based on prejudice or that is contrary to state civil rights laws;

provided that the decal does not obstruct the visibility of the number or letters or any other information that is required by law to be on the license plate and is readily identifiable and distinguishable under actual traffic conditions.

(f) The director shall charge a special number plate fee equal to the county's cost of providing the special number plate plus the organization's fundraising amount applied for under subsection (d). The fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate. The fundraising portion of the fee shall be deposited in the name of the organization in a separate county budget account. The director shall determine the most efficient means of reimbursing organizations for their fundraising portion of the fee.

(g) The director may revoke the approval of an organization's application for special number plates if the total number of registered vehicles that obtained the special number plates is less than one hundred fifty within three years of receiving approval to issue the organization's special number plate. Upon the revocation of the approval, the director shall return the unused decals to the organization.

(h) Nothing in this section shall be construed to apply to special number plates issued pursuant to section 249-9.2. [L 1997, c 326, §1; am L 1999, c 208, §4; am L 2000, c 13, §1; am L 2005, c 8, §1; am L 2025, c 91, §2]
Haw. Rev. Stat. § 235-27 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-27
Allocation of interest and dividends.
Status: in_force

Interest and dividends are allocable to this State if the taxpayer's commercial domicile is in this State.
Haw. Rev. Stat. § 235-117 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-117
Reciprocal supplying of tax information.
Status: in_force

Notwithstanding section 235-116, the department may permit the Secretary of the Treasury of the United States, the Commissioner of Internal Revenue, the Multistate Tax Commission, or the proper officer of any state or territory imposing an income tax upon incomes of persons taxable under this chapter, or any county of this State, or the authorized representatives thereof to inspect the income tax returns and estimates of any such person for tax purposes only. The department may also furnish to these authorized persons an abstract of an income tax return or estimate or supply these persons with information concerning any item of income contained in a return or disclosed by the report of an investigation of the income or return of a taxpayer. The Multistate Tax Commission may make the information available to a duly accredited tax official of the United States, any state or territory, or the authorized representative thereof, for tax purposes only. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-49; HRS §235-117; am L 1974, c 139, §4; am L Sp 2005, c 9, §4]
Haw. Rev. Stat. § 244D-5 — HI Code / Division 1 / Title 14 / Chapter 244D / Section 244D-5
REPEALED.
Status: in_force

L 1986, c 344, §5; L 1989, c 149, §1.
Haw. Rev. Stat. § 231-39 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-39
Additions to taxes for noncompliance or evasion; interest on underpayments and overpayments.
Status: in_force

(a) Except as otherwise provided, this section shall apply to every tax or revenue law of the State that provides for the filing with the director of taxation of a return or statement of the tax or the amount taxable.

(b) There shall be added to and become a part of the tax imposed by such tax or revenue law, and collected as such:

(1) Failure to file tax return. In case of failure to file any tax return required to be filed on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that the failure is due to reasonable cause and not due to neglect, there shall be added to the amount required to be shown as tax on the return five per cent of the amount of the tax if the failure is for not more than one month, with an additional five per cent for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five per cent in the aggregate. For purposes of this paragraph, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return. This paragraph shall not apply to any failure to file a declaration of estimated tax required by section 235-97.

(2) Failure to pay tax.

(A) If any part of any underpayment is due to negligence or intentional disregard of rules (but without intent to defraud), there shall be added to the tax an amount up to twenty-five per cent of the underpayment as determined by the director.

(B) If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount up to fifty per cent of the underpayment as determined by the director.

(C) If any penalty is assessed under subparagraph (B) (relating to fraud) for an underpayment of tax which is required to be shown on a return, no penalty under paragraph (1) (relating to failure to file the return) shall be assessed with respect to the same underpayment.

(3) Failure to pay tax after filing timely returns. If a return is filed on or before the date prescribed therefor and the amount shown as tax on the return is not completely paid within sixty days of the prescribed filing date, there shall be added to the unpaid tax an amount up to twenty per cent as determined by the director.

(4) Interest on underpayment or nonpayment of tax.

(A) If any amount of tax is not paid on or before the last date prescribed for payment, interest on such amount at the rate of two-thirds of one per cent a month or fraction of a month shall be paid for the period beginning with the first calendar day after the date prescribed for payment, section 231-21 to the contrary notwithstanding, to the date paid.

(B) If the amount of any tax is reduced by reason of a carryback of a net operating loss allowed under chapter 235, such reduction in tax shall not affect the computation of interest under this paragraph for the period ending with the last day of the taxable year in which the net operating loss arises.

(C) Interest prescribed under this paragraph on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes.

(D) No interest under this paragraph shall be imposed on interest provided by this paragraph.

(E) If any portion of a tax is satisfied by credit of any overpayment, then no interest shall be imposed under this paragraph on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to the overpayment.

(F) Interest prescribed under this paragraph on any tax may be assessed and collected at any time during the period within which the tax to which the interest relates may be collected.

(G) This paragraph shall not apply to any failure to pay estimated tax required by section 235-97.

(c) No taxpayer shall be exempt from any penalty or interest by reason of having contested the tax, but only to the extent that the tax is adjudged to be excessive or contrary to law. [L 1953, c 125, §4; RL 1955, §115-43; am L 1967, c 134, §1; HRS §231-39; am L 1974, c 138, §1; am L 1988, c 386, §1; am L 1991, c 136, §2; am L 1992, c 102, §2; am L 1994, c 15, §1]
Haw. Rev. Stat. § 232-25 — HI Code / Division 1 / Title 14 / Chapter 232 / Section 232-25
Amendment of assessment list to conform to decision.
Status: in_force

The assessor shall alter or amend the assessment and the assessment list in conformity with the decision or judgment of the last board or court to which an appeal may have been taken.
Haw. Rev. Stat. § 243-12 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-12
Procedure upon failure to file statement; penalties.
Status: in_force

If any distributor or other person fails, neglects, or refuses to file any statement or report as herein provided, the director of taxation, immediately after the required time for such filing has expired, may proceed to inform oneself as best the director may regarding the matters and things required to be set forth in such statement and from such information as the director is able to obtain shall:

(1) Make a statement showing such matters and things; and

(2) Determine and fix the amount of license tax due from the distributor or other person for such month, and proceed to collect the amount of the license tax with penalties and interest added thereto pursuant to section 231-39.

Upon request of the director, the attorney general (or the attorney general's deputies, including the county attorneys and public prosecutor) shall commence and prosecute to final determination in any court of competent jurisdiction an action at law to collect any tax herein imposed which is delinquent and all penalties and interest accrued, or any other appropriate action at law or otherwise to enforce this chapter. [L 1932 1st, c 19, §9; RL 1935, §2018; am L Sp 1941, c 26, pt of §1; RL 1945, §5411; am L 1953, c 125, pt of §9; RL 1955, §123-9; am L Sp 1959 2d, c 1, §16; HRS §243-12; gen ch 1985]
Haw. Rev. Stat. § 235-30 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-30
Apportionment; property factor.
Status: in_force

The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this State during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.
Haw. Rev. Stat. § 236E-22 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-22
Expenses of court proceeding.
Status: in_force

Whenever a circuit court certifies that probable cause exists for issuing a citation and taking proceedings under this chapter, the director of finance shall pay from the tax reserve fund provided in section 231-23(c)(2), or allow all expenses incurred for services of citation and other lawful disbursements that have not otherwise been paid.
Haw. Rev. Stat. § 237-26 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-26
Exemption of certain scientific contracts with the United States.
Status: in_force

(a) Any provision of law to the contrary notwithstanding, there shall be exempted from the measure of the taxes imposed by chapter 237, all of the gross proceeds derived by a contractor or subcontractor arising from the performance of any scientific work as defined in subsection (b), under a contract or subcontract entered into with the United States (including any agency or instrumentality thereof but not including national banks), and all of the gross proceeds derived from the sale of tangible personal property by a seller of such tangible personal property to such contractor or subcontractor; provided the exemption herein shall apply only to such tangible personal property which is to be affixed to, or to become a physical, integral part of the scientific facility, or which is to be entirely consumed during the performance of the service required by the contract or subcontract.

(b) For purposes of this section, "scientific work" is work involving primarily the research and development for, or the design, manufacture, instrumentation, installation, maintenance, or operation of aerospace, agricultural, astronomical, biomedical, electronic, geophysical, oceanographic, test range, or other scientific facilities. Maintenance or operation, for purposes of this section, shall include housekeeping functions in providing certain nonscientific logistic and support services. [L 1965, c 201, §27; Supp, §117-21.6; HRS §237-26; am L 1970, c 180, §13; am L 1971, c 4, §5; am L 1988, c 163, §1]
Haw. Rev. Stat. § 245-15 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-15
Disposition of revenues.
Status: in_force

All moneys collected pursuant to this chapter shall be paid into the state treasury as state realizations to be kept and accounted for as provided by law; provided that, of the moneys collected under the tax imposed pursuant to:

(1) Section 245-3(a)(5), after September 30, 2006, and prior to October 1, 2007, 1.0 cent per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(2) Section 245-3(a)(6), after September 30, 2007, and before October 1, 2008:

(A) 1.5 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.25 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5; and

(C) 0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(3) Section 245-3(a)(7), after September 30, 2008, and before July 1, 2009:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 0.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 0.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(4) Section 245-3(a)(8), after June 30, 2009, and before July 1, 2013:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 0.75 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 0.75 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 0.5 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(5) Section 245-3(a)(11), after June 30, 2013, and before July 1, 2015:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 1.5 cents per cigarette shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 1.25 cents per cigarette shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234;

(6) Section 245-3(a)(11), after June 30, 2015, and before January 1, 2026:

(A) 2.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures;

(B) 1.125 cents per cigarette, but not more than $7,400,000 in a fiscal year, shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 1.25 cents per cigarette, but not more than $8,800,000 in a fiscal year, shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234; and

(7) Section 245-3(a)(12), after December 31, 2025, and thereafter:

(A) 4.0 cents per cigarette shall be deposited to the credit of the Hawaii cancer research special fund, established pursuant to section 304A-2168, for research and operating expenses and for capital expenditures; provided that, until June 30, 2030, of each amount deposited under this paragraph to the credit of the Hawaii cancer research special fund, 4.0 cents per cigarette shall be used exclusively for debt service of capital expenditures and building maintenance; provided further that beginning July 1, 2030, of each amount deposited under this paragraph to the credit of the Hawaii cancer research special fund, 2.0 cents per cigarette shall be used exclusively for debt service of capital expenditures and building maintenance;

(B) 1.125 cents per cigarette, but no more than $7,400,000 in a fiscal year, shall be deposited to the credit of the trauma system special fund established pursuant to section 321-22.5;

(C) 1.25 cents per cigarette, but no more than $8,800,000 in a fiscal year, shall be deposited to the credit of the community health centers special fund established pursuant to section 321-1.65; and

(D) 1.25 cents per cigarette, but no more than $8,800,000 in a fiscal year, shall be deposited to the credit of the emergency medical services special fund established pursuant to section 321-234.

The department shall provide an annual accounting of these dispositions to the legislature. [L 1939, c 220, §16; RL 1945, §5765; RL 1955, §125-15; HRS §245-15; am L 2000, c 249, §§10, 20(2); am L 2001, c 270, §6; am L 2002, c 94, §3; am L 2006, c 316, §8; am L 2007, c 102, §2; am L 2008, c 84, §1; am L 2009, c 56, §2 and c 58, §4; am L 2010, c 192, §28; am L 2015, c 238, §2; am L 2025, c 95, §3]
Haw. Rev. Stat. § 231-36.5 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-36.5
Understatement of taxpayer's liability by tax return preparer.
Status: in_force

(a) A tax return preparer who understates a person's tax liability based upon unreasonable positions on a tax return or claim for tax refund shall pay a penalty of $500 with respect to each such tax return or claim for tax refund.

(b) A tax return preparer who:

(1) Wilfully understates a person's tax liability; or

(2) Recklessly disregards any tax law or rule in understating a person's tax liability,

based upon unreasonable positions on a tax return or claim for tax refund shall pay a penalty of $1,000, with respect to each such tax return or claim for tax refund.

(c) For purposes of subsections (a) and (b), u nderstatements of liability using unreasonable positions occur when :

(1) Any part of a tax return or claim for tax refund is based on a position that does not have substantial authority;

(2) The tax return preparer who prepared the tax return or claim for tax refund knew or reasonably should have known of the unreasonable position; and

(3) The unreasonable position was not a disclosed item as defined in subsection (h) or was frivolous.

(d) If within thirty days after the notice and demand of any penalty under subsection (a) or (b) is made, the tax return preparer:

(1) Pays an amount that is not less than fifteen per cent of the penalty amount; and

(2) Files a claim for refund of the amount so paid,

no action to levy or file a proceeding in court to collect the remainder of the penalty shall be commenced except in accordance with subsection (e).

(e) An action that is stayed pursuant to subsection (d) may be brought thirty days after either of the following events, whichever occurs first:

(1) The tax return preparer fails to file an appeal to the tax appeal court within thirty days after the day on which the claim for refund of any partial payment of any penalty under subsection (a) or (b) is denied; or

(2) The tax return preparer fails to file an appeal to the tax appeal court for the determination of the tax return preparer's liability for the penalty assessed under subsection (a) or (b) within six months after the day on which the claim for refund was filed.

Nothing in this subsection shall be construed to prohibit any counterclaim for the remainder of the penalty in any proceeding.

(f) If there is a final administrative determination pursuant to section 231-7.5, or a final judicial decision that the penalty assessed under subsection (a) or (b) should not apply, then that portion of the penalty assessed shall be voided. Any portion of the penalty that has been paid shall be refunded to the tax return preparer as an overpayment of tax without regard to any period of limitations that, but for this subsection, would apply to the making of the refund.

(g) At the request of the director of taxation, a civil action may be brought to enjoin a tax return preparer from further acting as a tax return preparer or from engaging in conduct prohibited under subsection (a) or (b) as follows:

(1) Any action under this subsection may be brought in the circuit court of the circuit in which the tax return preparer resides or has a principal place of business, or in which the taxpayer with respect to whose tax return the action is brought resides;

(2) The court may exercise its jurisdiction over the action separate and apart from any other action brought by the State against the tax return preparer or taxpayer;

(3) If the court finds that a tax return preparer has engaged in conduct subject to penalty under subsection (a) or (b) and that injunctive relief is appropriate to prevent the recurrence of that conduct, the court may enjoin the preparer accordingly; and

(4) If the court finds that a tax return preparer has continually or repeatedly engaged in conduct prohibited under subsection (a) or (b) and that an injunction prohibiting that conduct would not be sufficient to prevent the preparer's interference with the proper administration of this chapter, the court may enjoin the preparer from acting as a tax return preparer.

(h) For purposes of this section:

"Disclosed item" means any item where:

(1) The relevant facts affecting the item's tax treatment are adequately disclosed in a tax return or in a statement attached to a tax return; and

(2) There is a reasonable basis for the tax treatment of the item by the taxpayer.

"Substantial authority" means, in addition to any definition of substantial authority incorporated by subsection (j), that the following authority supports the tax treatment of an item:

(1) Statutory provisions;

(2) Proposed or final administrative rules;

(3) Tax information releases or procedures;

(4) Department of taxation announcements or official explanations;

(5) Court cases;

(6) Legislative intent reflected in committee reports and floor statements;

(7) Private letter rulings, comfort letters, technical or advice letters, and written determinations to the extent they are valid and not overruled by other authority; or

(8) Notices or other official pronouncements of the department of taxation.

"Tax return preparer" means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed under title 14 or any claim for refund of tax imposed under title 14. For purposes of this definition, the preparation of a substantial portion of a return or claim for refund shall be treated as if it were the preparation of the return or claim for refund.

A person shall not be a tax return preparer merely because the person:

(1) Furnishes typing, reproducing, or other mechanical assistance;

(2) Prepares a return or claim for refund of the employer (or of an officer or employee of the employer) by whom the person is regularly and continuously employed;

(3) Prepares as a fiduciary a return or claim for refund for any other person; or

(4) Prepares a claim for refund for a taxpayer in response to any notice of deficiency issued to the taxpayer or in response to any waiver of restriction after the commencement of an audit of the taxpayer, or of another taxpayer if a determination in the audit of the other taxpayer directly or indirectly affects the tax liability of the taxpayer.

"Understatement of liability" shall have the same meaning as stated in section 231-36.6(b). The determination of whether there is an understatement of liability may be made without regard to any administrative or judicial action involving the taxpayer.

(i) The penalty imposed by this section shall be in addition to any other penalty provided by law.

(j) This section shall be construed in accordance with regulations and judicial interpretations for section 6694 of the Internal Revenue Code. [L 2009, c 166, §1]
Haw. Rev. Stat. § 231-15.4 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-15.4
Tax return preparers; preparer tax identification number required.
Status: in_force

(a) A tax return preparer shall have a valid preparer tax identification number.

(b) A tax return preparer shall not:

(1) For compensation, prepare any return or claim for refund without having a valid preparer tax identification number; or

(2) Omit its preparer tax identification number from any return or claim for refund prepared for compensation where the department requires the preparer tax identification number to be disclosed.

(c) A tax return preparer who violates subsection (b) shall be liable for the following penalties:

(1) $100 per violation for the first one hundred violations;

(2) $500 per violation for the one hundred first violation to the five hundredth violation; and

(3) $1,000 per violation for all subsequent violations.

Each return or claim for refund prepared by a tax return preparer or submitted to the department in violation of subsection (b) shall be a separate violation; provided that preparing and submitting the same return or claim for refund shall not constitute two separate violations. The director of taxation may waive the penalties under this section in part or in full if the tax return preparer shows that the violation was due to reasonable cause.

(d) If within thirty days after the notice and demand of any penalty under subsection (c) is made, the tax return preparer:

(1) Pays an amount that is no less than fifteen per cent of the penalty amount; and

(2) Files a claim for refund of the amount so paid,

no action to levy or file a proceeding in court to collect the remainder of the penalty shall be commenced except in accordance with subsection (e).

(e) An action that is stayed pursuant to subsection (d) may be brought thirty days after either of the following events, whichever occurs first:

(1) The tax return preparer fails to file an appeal to the tax appeal court within thirty days after the day on which the claim for refund of any partial payment of any penalty under subsection (c) is denied; or

(2) The tax return preparer fails to file an appeal to the tax appeal court for the determination of the tax return preparer's liability for the penalty assessed under subsection (c) within six months after the day on which the claim for refund was filed.

Nothing in this subsection shall be construed to prohibit any counterclaim for the remainder of the penalty in any proceeding.

(f) If there is a final administrative determination pursuant to section 231-7.5, or a final judicial decision that the penalty assessed under subsection (c) should not apply, then that portion of the penalty assessed shall be voided. Any portion of the penalty that has been paid shall be refunded to the tax return preparer as an overpayment of tax without regard to any period of limitations that, but for this subsection, would apply to the making of the refund.

(g) At the request of the director of taxation, a civil action may be brought to enjoin a tax return preparer from further acting as a tax return preparer or from engaging in conduct as follows:

(1) Any action under this subsection may be brought in the circuit court of the circuit in which the tax return preparer resides or has a principal place of business, or in which the taxpayer with respect to whose tax return the action is brought resides;

(2) The court may exercise its jurisdiction over the action separate and apart from any other action brought by the State against the tax return preparer or taxpayer;

(3) If the court finds that a tax return preparer has engaged in conduct subject to the penalty under subsection (c) and that injunctive relief is appropriate to prevent the recurrence of that conduct, the court may enjoin the preparer accordingly; and

(4) If the court finds that a tax return preparer has continually or repeatedly engaged in conduct prohibited under subsection (b) and that an injunction prohibiting that conduct would not be sufficient to prevent the tax return preparer's interference with the proper administration of this chapter, the court may enjoin the preparer from acting as a tax return preparer.

(h) The department may adopt rules pursuant to chapter 91 necessary to effectuate the implementation of this section.

(i) For purposes of this section:

"Preparer tax identification number" means an identifying number issued by the Internal Revenue Service in accordance with section 6109 of the Internal Revenue Code of 1986, as amended, and title 26 Code of Federal Regulations section 1.6109-2.

"Tax return preparer" shall have the same meaning as that term is defined in section 231-36.5. [L 2021, c 96, §3]
Haw. Rev. Stat. § 235-20 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-20
Comfort letters; authority to assess fees; established.
Status: in_force

The department may assess and collect a fee for the issuance of any comfort letter of the department. All fees collected under this section shall be deposited into the tax administration special fund established under section 235-20.5.
Haw. Rev. Stat. § 243-10 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-10
Statements and payments.
Status: in_force

Each distributor and each person subject to section 243-4, on or before the twentieth day of each calendar month, shall file with the department, on forms prescribed by the department, a statement, authenticated as provided in section 231-15, showing separately for each county and for the island of Lanai and the island of Molokai within which and whereon fuel is sold or used during each preceding month of the calendar year, the following:

(1) The total number of gallons of fuel refined, manufactured, or compounded by the distributor or person within the State and sold or used by the distributor or person, and if for ultimate use in another county or on either island, the name of that county or island;

(2) The total number of gallons of fuel acquired by the distributor or person during the month from persons not subject to the tax on the transaction or only subject to tax thereon at the rate of 1 cent per gallon, as the case may be, and sold or used by the distributor or person, and if for ultimate use in another county or on either island, the name of that county or island;

(3) The total number of gallons of fuel sold by the distributor or person to the United States or any department or agency thereof, or to any other person or entity, or used in any manner, the effect of which sale or use is to exempt the fuel from the tax imposed by this chapter; and

(4) Additional information relative to the acquisition, purchase, manufacture, or importation into the State, and the sale, use, or other disposition, of diesel oil by the distributor or person during the month, as prescribed by the department by rule.

At the time of submitting the foregoing report to the department, each distributor and person shall pay the tax on each gallon of fuel (including diesel oil) sold or used by the distributor or person in each county and on the island of Lanai and the island of Molokai during the preceding month, as shown by the statement and required by this chapter; provided that the tax shall not apply to any fuel exempted and so long as the same is exempted from the imposition of the tax by the Constitution or laws of the United States; and the tax shall be paid only once upon the same fuel; provided further that a licensed distributor shall be entitled, in computing the tax the licensed distributor is required to pay, to deduct from the gallons of fuel reported for the month for each county or for the island of Lanai or the island of Molokai, as the case may be, one gallon for each ninety-nine gallons of like liquid fuel sold by retail dealers in that county or on that island during the month, as shown by certificates furnished by the retail dealers to the distributor and attached to the distributor's report. All taxes payable for any month shall be delinquent after the expiration of the twentieth day of the following month.

Statements filed under this section concerning the number of gallons of fuel refined, manufactured, compounded, imported, sold or used by the distributor or person shall be public records. All other information filed under this chapter and not expressly made public record under this section shall not be public records. [L 1932 1st, c 19, §7; am L 1933, c 133, §3; RL 1935, §2016; am L 1937, c 189, §2; am L Sp 1941, c 26, pt of §1; am L 1943, c 4; RL 1945, §5409; am L 1947, c 196, §4; am L 1949, c 373, §3; am L 1953, c 20, §7 and c 125, pt of §9; am L 1955, c 250, §4; RL 1955, §123-7; am L 1957, c 322, §3; am L Sp 1959 2d, c 1, §16; am L 1965, c 169, §1; HRS §243-10; gen ch 1985; am L 1991, c 55, §2; am L 2000, c 85, §2; am L 2010, c 22, §4; am L 2021, c 116, §4 and c 117, §22]
Haw. Rev. Stat. § 237-29.53 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-29.53
Exemption for contracting or services exported out of State.
Status: in_force

(a) There shall be exempted from, and excluded from the measure of, taxes imposed by this chapter, all of the value or gross income derived from contracting (as defined under section 237-6) or services performed by a person engaged in a service business or calling in the State for use outside the State where:

(1) The contracting or services are for resale, consumption, or use outside the State; and

(2) The value or gross income derived from the contracting or services performed would otherwise be subject to the tax imposed under this chapter on contracting or services at the highest rate.

For the purposes of this subsection, the seller or person rendering the contracting or services exported and resold, consumed, or used outside the State shall take from the customer, a certificate or an equivalent, in a form the department prescribes, certifying that the contracting or service purchased is to be otherwise resold, consumed, or used outside the State. Any customer who furnishes this certificate or an equivalent shall be obligated to pay the seller or person rendering the contracting or services, upon demand, if the contracting or service purchased is not resold or otherwise consumed or used outside the State, the amount of the additional tax which by reason thereof is imposed upon the seller or person rendering the contracting or service.

(b) There shall be exempted from, and excluded from the measure of, taxes imposed by this chapter, all of the value or gross income derived from contracting (as defined in section 237-6) or services performed by a person engaged in a service business or calling in the State for a purchaser who resells all of the contracting or services for resale, consumption, or use outside the State pursuant to subsection (a). For the purposes of this subsection, the seller or person rendering the contracting or services for a purchaser who resells the contracting or services for resale, consumption, or use outside the State shall take from the purchaser, a certificate or an equivalent, in a form that the department prescribes, certifying that the contracting or services purchased is to be for resale, consumption, or use outside the State pursuant to subsection (a). Any purchaser who furnishes this certificate or an equivalent shall be obligated to pay the seller or person rendering the contracting or services, upon demand, if the contracting or services purchased is not resold in its entirety to a customer of the purchaser who has complied with subsection (a), the amount of the additional tax which by reason thereof is imposed upon the seller or the person rendering the contracting or service. [L 1999, c 70, §1; am L 2000, c 198, §6]
Haw. Rev. Stat. § 237D-4.5 — HI Code / Division 1 / Title 14 / Chapter 237D / Section 237D-4.5
Certificate of registration for transient accommodations broker, travel agency, and tour packager.
Status: in_force

(a) Each transient accommodations broker, travel agency, or tour packager, as a condition precedent to entering into an arrangement to furnish transient accommodations at noncommissioned negotiated contract rates, shall register with the director. The transient accommodations broker, travel agency, or tour packager shall make a one-time payment of $15 for each registration, upon receipt of which the director shall issue a certificate of registration in a form as the director determines, attesting that the registration has been made. The registration shall not be transferable and shall be valid only for the transient accommodations broker, travel agency , or tour packager in whose name it is issued.

The registration shall be effective until canceled in writing. Any application for the reissuance of a previously canceled registration identification number shall be regarded as a new application for registration and shall be subject to the payment of the one-time registration fee. The director may revoke or cancel any registration issued under this section for cause, as provided by rule under chapter 91.

(b) Any person who enters into an agreement to furnish transient accommodations without registering in conformity with this section shall be subject to the citation process and monetary fines under section 237D-4(d) and (g). [L 2018, c 211, §1; am L 2021, c 90, §5]
Haw. Rev. Stat. § 248-2.6 — HI Code / Division 1 / Title 14 / Chapter 248 / Section 248-2.6
County surcharge on state tax; disposition of proceeds.
Status: repealed

[Section repealed December 31, 2030. L Sp 2017, c 1, §6.] (a) If adopted by county ordinance, all county surcharges on state tax collected by the director of taxation shall be paid into the state treasury quarterly, within ten working days after collection, and shall be placed by the director of finance in special accounts; provided that county surcharge revenues levied, assessed, and collected in a county with a population greater than five hundred thousand shall be deposited into the mass transit special fund established under section 248-2.7. Out of the revenues generated by county surcharges on state tax paid into each respective state treasury special account or the mass transit special fund, the director of finance shall deduct one per cent of the gross proceeds of a respective county's surcharge on state tax to reimburse the State for the costs of assessment, collection, disposition, and oversight of the county surcharge on state tax incurred by the State. Amounts retained shall be general fund realizations of the State.

(b) The amounts deducted for costs of assessment, collection, disposition, and oversight of county surcharges on state tax shall be withheld from payment to the counties by the State out of the county surcharges on state tax collected for the current calendar year.

(c) For the purpose of this section, the costs of assessment, collection, disposition, and oversight of the county surcharges on state tax shall include any and all costs, direct or indirect, that are deemed necessary and proper to effectively administer this section and sections 237-8.6 and 238-2.6.

(d) For a county with a population equal to or less than five hundred thousand that adopts a county surcharge on state tax, after the deduction and withholding of the costs under subsections (a) and (b), the director of finance shall pay the remaining balance on a quarterly basis to the director of finance of each county that has adopted a county surcharge on state tax under section 46-16.8.

For a county with a population greater than five hundred thousand that adopts or extends a county surcharge on state tax ordinance, after the deduction and withholding of the costs under subsections (a) and (b), the director of finance shall administer the remaining surcharge revenues in accordance with section 248-2.7.

The payments shall be made after the county surcharges on state tax have been paid into the state treasury special accounts or the mass transit special fund or after the disposition of any tax appeal, as the case may be. All county surcharges on state tax collected shall be distributed by the director of finance to the county in which the county surcharge on state tax is generated and shall be a general fund realization of the county, to be used for the purposes specified in section 46-16.8 by each of the counties. [L 2005, c 247, §§5, 9; am L 2015, c 240, §7; am L Sp 2017, c 1, §5]
Haw. Rev. Stat. § 236E-10 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-10
Interest on amount due; penalties.
Status: in_force

(a) Any tax due under this chapter that is not paid by the time prescribed for the filing of the return as provided in section 236E-9, not including any extension with respect to the filing of the report or the payment of the tax, shall bear interest at the rate in section 231-39(b)(4) from the date any tax is due until paid.

(b) If the return provided for in section 236E-9 is not filed within the time period specified, unless it is shown that the failure to file is due to a reasonable cause, then there shall be paid, in addition to the interest provided in this section, a penalty equal to five per cent of the tax due in respect to the transfer, or five per cent of the additional tax due in the case of a supplemental return, for each month beyond the time periods that the return has not been filed; provided that no penalty so imposed shall exceed a total of twenty-five per cent of the tax.

(c) If the Internal Revenue Service waives the penalty provided in the Internal Revenue Code for failure to timely file the federal return or the penalty for failure to timely pay the federal transfer tax liability, the waiver shall be deemed to constitute reasonable cause for the purposes of this section. [L 2012, c 220, pt of §1]
Haw. Rev. Stat. § 245-41.5 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-41.5
Cigarette tax stamp administrative special fund.
Status: in_force

(a) There is established in the state treasury the cigarette tax stamp administrative special fund, into which shall be deposited the allocated portion of the stamp fee designated to pay for the cost to the State of providing the stamps as provided by section 245-26.

(b) Moneys in the cigarette tax stamp administrative special fund shall be administered by the department of taxation and shall be used:

(1) To provide the stamps and administer the cigarette tax stamp provisions as provided in chapter 245; and

(2) For any other requirements deemed necessary to carry out the purposes of chapter 245. [L 2001, c 270, §2]
Haw. Rev. Stat. § 244D-12 — HI Code / Division 1 / Title 14 / Chapter 244D / Section 244D-12
Appeals.
Status: in_force

Any person aggrieved by any assessment of the tax imposed by this chapter may appeal from the assessment in the manner and within the time and in all other respects as provided in the case of income tax appeals by section 235-114. The hearing and disposition of the appeal, including the distribution of costs shall be as provided in chapter 232. [L Sp 1984 1st, c 1, pt of §2; am L 2000, c 199, §7; am L 2004, c 123, §7]
Haw. Rev. Stat. § 236D-17 — HI Code / Division 1 / Title 14 / Chapter 236D / Section 236D-17
Who liable, amount.
Status: in_force

Every person who fails or refuses to perform, within a reasonable time, any and every duty required by this chapter, or who fails or refuses to make and deliver within a reasonable time any statement or record required by this chapter, shall forfeit to the State the sum of $1,000, to be recovered in an action brought by the attorney general in the name of the State.
Haw. Rev. Stat. § 231-58 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-58
Rules.
Status: in_force

All state agencies may adopt rules pursuant to chapter 91 for carrying out the purposes of sections 231-51 to 231-59.
Haw. Rev. Stat. § 231-10.6 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-10.6
Rules or administrative guidance.
Status: in_force

Rules, including temporary rules, providing examples and safe harbors shall be implemented to explain in clear and unambiguous terms the penalties and fines provided under any provision of title 14 that may be imposed against a return preparer or taxpayer for understatement of tax liabilities, promotion of abusive tax shelters, erroneous claims for refund or credit, or substantial understatements or misstatements of tax. Federal laws and administrative guidance may be used to interpret this section. Any such penalties or fines shall first be approved by the director before assessment.
Haw. Rev. Stat. § 235-66 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-66
Further withholdings at source; crediting of withheld taxes.
Status: in_force

(a) The department of taxation by regulation, may require the deduction and withholding of tax from any gross income or adjusted gross income of a nonresident, in order to collect the tax imposed by this chapter on the nonresident.

(b) Income upon which any tax has been withheld at the source under sections 235-61 to 235-64.2, or under regulations adopted pursuant to subsection (a), shall be included in the return of the recipient of such income, but any amount of tax so withheld shall be credited against the amount of income tax as computed in the return, and if in excess of the tax due for the taxable year shall be refunded as provided in section 235-110. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-21; HRS §235-66; am L 2019, c 232, §2]
Haw. Rev. Stat. § 235-53 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-53
Tax tables for individuals.
Status: in_force

(a) Imposition of tax table tax:

(1) In general. In lieu of the tax imposed by section 235-51, there is hereby imposed for each taxable year on the taxable income of every individual:

(A) Who does not itemize the individual's deductions for the taxable year; and

(B) Whose taxable income for such taxable year does not exceed the ceiling amount,

a tax determined under tables, applicable to such taxable year, which shall be prescribed by the director. In the tables so prescribed, the amounts of tax shall be computed on the basis of the rates prescribed by section 235-51.

(2) Ceiling amount defined. For purposes of paragraph (1), the term "ceiling amount" means, with respect to any taxpayer, the amount (not less than $20,000) determined by the director for the tax rate category in which such taxpayer falls.

(3) Authority to prescribe tables for taxpayers who itemize deductions. The director may provide that this section shall apply also for any taxable year to individuals who itemize their deductions. Any tables prescribed under the preceding sentence shall be on the basis of taxable income.

(b) Section inapplicable to certain individuals. This section shall not apply to:

(1) An individual making a return for a period of less than twelve months on account of a change in annual accounting period, and

(2) An estate or trust.

(c) Tax treated as imposed by section 235-51. For purposes of this chapter, the tax imposed by this section shall be treated as tax imposed by section 235-51.

(d) Taxable income. Whenever it is necessary to determine the taxable income of an individual to whom this section applies, the taxable income shall be determined under section 235-2.4(a). [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-10; HRS §235-53; am L 1968, c 8, §2; am L 1977, c 46, §1; am L 1981, c 208, §3; am L 1987, c 239, §1(13), (14)]
Haw. Rev. Stat. § 247-11 — HI Code / Division 1 / Title 14 / Chapter 247 / Section 247-11
§§247-11 and 247-12 REPEALED.
Status: repealed

§§247-11 and 247-12 REPEALED. L 1995, c 92, §§30, 31.
Haw. Rev. Stat. § 235-39 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-39
Citation of part.
Status: in_force

This part may be cited as the "Uniform Division of Income for Tax Purposes Act".
Haw. Rev. Stat. § 235-118 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-118
Rules and regulations.
Status: in_force

Except as otherwise provided in this chapter, the department of taxation shall prescribe and have printed all needful rules and regulations for the enforcement of this chapter and such rules and regulations so made shall have the force and effect of law if they be not in conflict with the express statutory provisions to which the same are applicable. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-50; HRS §235-118]
Haw. Rev. Stat. § 241-6 — HI Code / Division 1 / Title 14 / Chapter 241 / Section 241-6
Chapter 235 applicable.
Status: in_force

All of the provisions of chapter 235 not inconsistent with this chapter, and which may be appropriately applied to the taxes, persons, circumstances, and situations involved in this chapter, including without prejudice to the generality of the foregoing, sections 235-92, 235-98, 235-99, and 235-101 to 235-118, shall be applicable to the taxes imposed by this chapter, and to the assessment and collection thereof. Any tax refund payable under section 235-110, hereby made applicable to the taxes imposed by this chapter, shall be made in the manner provided in section 231-23(c).

The filing of a consolidated return under section 235-92 applies only to a bank, building and loan association, financial services loan company, financial corporation, small business investment company, development company, mortgage loan companies, trust company, or financial holding company, and their subsidiaries as defined in section 241-1. [L Sp 1957, c 1, pt of §10(a); am L 1963, c 45, §9; Supp, §127-6; HRS §241-6; am L 1986, c 339, §19; am L 1992, c 106, §15]
Haw. Rev. Stat. § 241-4 — HI Code / Division 1 / Title 14 / Chapter 241 / Section 241-4
Measure and rate of tax.
Status: in_force

(a) The measure of the tax imposed by this chapter is the entire net income from all sources for the preceding calendar year, or in the case of a taxpayer operating on a fiscal year basis, for the preceding fiscal year. The tax shall be at the rate of seven and ninety-two one hundredths per cent of the entire net income from all sources.

(b) The "entire net income from all sources" shall be determined in the same manner as the "taxable income" of a corporation, as provided by chapter 235, with the following changes and adjustments:

(1) There is included in gross income interest received upon the obligations of the United States or its possessions, or upon securities issued under the authority of an act of Congress, or upon state, territorial, municipal, county, or other bonds or securities whether or not the income from such obligations, bonds, or securities, is tax free. Section 235-7(a)(1), (5), and (6) does not apply.

(2) Deductions connected with income which by this chapter are required to be included in the computation of net income shall be allowed, but deductions connected with income which by this chapter are not to be included in the computation of net income shall not be allowed. Section 235-7(e)(1) does not apply.

(3) Debts ascertained to be worthless and charged off on the books of the taxpayer within the income year may be deducted, or in the discretion of the department of taxation may be treated as a reasonable addition to a reserve for bad debts; provided that when satisfied that a debt is recoverable only in part, the department may allow the debt to be charged off in part.

(4) In the case of any life insurance company (as defined by the Internal Revenue Code), which is determined to be a financial corporation as defined by this chapter, sections 801, 811, and 812 of the Internal Revenue Code do not apply. The total of the deductions allowed by sections 807 and 810 of the Internal Revenue Code shall not exceed the amount of the required interest, as defined by section 807 of the Internal Revenue Code.

(5) Section 582 (with respect to bonds, etc., losses and gains of financial institutions) of the Internal Revenue Code shall be operative for the purposes of this chapter. [L Sp 1957, c 1, pt of §10(a); am L Sp 1959 2d, c 1, §16; am L 1965, c 155, §21; Supp, §127-4; HRS §241-4; am L 1975, c 52, §1; am L 1978, c 173, §3; am L 1979, c 62, §3; am L 1985, c 19, §3; am L 1987, c 39, §6; am L 1988, c 69, §2; am L 1992, c 106, §14; am L 1995, c 85, §1]
Haw. Rev. Stat. § 237D-15 — HI Code / Division 1 / Title 14 / Chapter 237D / Section 237D-15
Application of tax.
Status: in_force

(a) The tax imposed by this chapter shall be in addition to any other taxes imposed by any other laws of the State, except as otherwise specifically provided in this chapter; provided that if it be held by any court of competent jurisdiction that the tax imposed by this chapter may not legally be imposed in addition to any other tax or taxes imposed by any other law or laws with respect to the same property or the use thereof, then this chapter shall be deemed not to apply to such property and the use thereof under the specific circumstances, but the other laws shall be given full effect with respect to such property and use.

(b) In order to determine if the tax under this chapter is to be levied, assessed, and collected upon transient accommodations the following presumptions shall control.

(1) If a person lets a transient accommodation for less than one hundred eighty consecutive days, it shall be presumed that the accommodation furnished is for a transient purpose.

(2) If a person lets a transient accommodation for one hundred eighty days or more, there is no presumption one way or another as to the purpose for which the accommodation is furnished.

The operator shall have the burden of proving to the department whether an accommodation is not being furnished for a transient purpose. If the department is satisfied that an accommodation is not furnished for a transient purpose, then the department shall not levy any tax under this chapter. The department shall adopt rules to implement this section.

(c) Except as otherwise provided, this chapter shall apply to a transient accommodations broker, travel agency, or tour packager who enters into an agreement to furnish transient accommodations at noncommissioned negotiated contract rates in the same manner as it applies to an operator. [L 1986, c 340, pt of §1; am L 1998, c 156, §28; am L 2018, c 211, §4]
Haw. Rev. Stat. § 237-29 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-29
Exemptions for certified or approved housing projects.
Status: in_force

(a) All gross income received by any qualified person or firm for the planning, design, financing, construction, sale, or lease in the State of a housing project that has been certified or approved under section 201H-36 shall be exempt from general excise taxes.

(b) All gross income received by a nonprofit or a limited distribution mortgagor for a low- and moderate-income housing project certified or approved under section 201H-36 shall be exempt from general excise taxes.

(c) The director of taxation and the Hawaii housing finance and development corporation shall adopt rules pursuant to chapter 91 for the purpose of this section, including any time limitation for the exemptions. [L 1967, c 140, §§1, 2; HRS §237-29; am L 1969, c 132, §1; am L 1983, c 228, §1; am L 1985, c 77, §1; am L 1987, c 337, §11; am L 1988, c 153, §3; am L 1989, c 237, §2; am L 1990, c 68, §2; am L 1997, c 350, §§14 to 16; am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 249, §18]
Haw. Rev. Stat. § 231-21.5 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-21.5
Effect of civil union.
Status: in_force

[§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 legal marital relationship shall be deemed to apply in this chapter to partners in a civil union with the same force and effect as if they were "husband and wife", "spouses", or other terms that describe persons in a legal marital relationship.
Haw. Rev. Stat. § 256B-7 — HI Code / Division 1 / Title 14 / Chapter 256B / Section 256B-7
Accounts not guaranteed by the State.
Status: in_force

(a) Nothing in this chapter shall create or be construed to create any obligation of the director, the State, or any agency or instrumentality of the State to guarantee for the benefit of any account owner or designated beneficiary with respect to the:

(1) Return of principal;

(2) Rate of interest or other return on any account; or

(3) Payment of interest or other return on any account.

(b) The director shall adopt rules to provide that every contract, application, or other similar document that may be used in connection with opening an account clearly indicates that the account is not insured by the State and that the principal deposited and the investment return are not guaranteed by the State. [L 2015, c 206, pt of §2]
Haw. Rev. Stat. § 235-25 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-25
Rents; royalties.
Status: in_force

(a) Net rents and royalties from real property located in this State are allocable to this State.

(b) Net rents and royalties from tangible personal property are allocable to this State:

(1) If and to the extent that the property is utilized in this State, or

(2) In their entirety if the taxpayer's commercial domicile is in this State and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession. [L 1967, c 33, pt of §1; HRS §235-25]
Haw. Rev. Stat. § 245-55 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-55
Forfeiture.
Status: in_force

Any cigarette, package of cigarettes, or carton of cigarettes unlawfully possessed, kept, stored, received, held, owned, acquired, retained, transported, imported, or caused to be imported, distributed, sold, or offered for sale, in violation of this part, shall be forfeited as contraband pursuant to chapter 712A. Any cigarette, package of cigarettes, or carton of cigarettes forfeited as provided in this section shall be ordered destroyed.
Haw. Rev. Stat. § 245-58 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-58
Illegal sale of export or foreign cigarettes; revocation or suspension of license; civil penalties.
Status: in_force

If any licensee violates this part or any rule adopted pursuant to this part, the director may:

(1) Revoke or suspend the licensee's license pursuant to procedures complying with chapter 91; and

(2) Impose a civil penalty in an amount not to exceed the greater of five times the retail value of the cigarettes involved, or $5,000. [L 2000, c 201, pt of §1]
Haw. Rev. Stat. § 231-85 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-85
Identification of cash economy cases; retention of funds.
Status: in_force

Notwithstanding any law to the contrary, each fiscal year, the special enforcement section may identify any taxpayer, assessment, investigation, or collection matter as a matter of the special enforcement section. All revenues collected from special enforcement section matters shall be deposited into the tax administration special fund.
Haw. Rev. Stat. § 231-15.7 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-15.7
Returns by fiduciaries.
Status: in_force

The returns, statements, or answers required under chapters of the law under title 14 administered by the department shall be made, in the form and manner prescribed by the department, by the personal representative, trustee, guardian, or other fiduciary in such capacity.
Haw. Rev. Stat. § 251-6 — HI Code / Division 1 / Title 14 / Chapter 251 / Section 251-6
Annual return.
Status: in_force

On or before the twentieth day of the fourth month following the close of the taxable year, every person who has become liable for the payment of the surcharge taxes under this chapter during the preceding tax year shall file a return summarizing the person's liability under this chapter for the year, in such form as the director prescribes. The person shall transmit with the return a remittance covering the residue of the surcharge tax chargeable to the person, if any, to the office of the appropriate state district tax assessor designated in section 251-7. The return shall be signed by the person, if made by an individual, or by the president, vice-president, secretary, or treasurer of a corporation, if made on behalf of a corporation. If made on behalf of a partnership, firm, society, unincorporated association, group, hui, joint adventure, joint stock company, corporation, trust estate, decedent's estate, trust, or other entity, any individual delegated by the entity shall sign the same on behalf of the person. If for any reason it is not practicable for the individual person to sign the return, it may be done by any duly authorized agent. The department, for good cause shown, may extend the time for making the return on the application of any person and grant such reasonable additional time within which to make the return as the department may deem advisable.

Section 232-2 applies to the annual return, but not to a monthly, quarterly, or semiannual return. [L 1991, c 263, pt of §1]
Haw. Rev. Stat. § 249-3 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-3
§ §249-3 and 249-3.
Status: repealed

§ §249-3 and 249-3.5 REPEALED. L 1995, c 164, §§5, 6.
Haw. Rev. Stat. § 231-64 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-64
Tax liens; registered land.
Status: in_force

If the land has been registered in the land court, the state tax collector shall also send by registered mail a notice of the proposed sale to any person holding a mortgage or other lien registered in the office of the assistant registrar of the land court. The notice shall be sent to any such person at the person's last address as shown by the records in the office of the registrar, and shall be deposited in the mail at least forty-five days prior to the date set for the sale.
Haw. Rev. Stat. § 237-41 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-41
Records to be kept; examination.
Status: in_force

Every taxpayer shall keep in the English language within the State, and preserve for a period of three years, suitable records of gross proceeds of sales and gross income, and such other books, records of account, and invoices as may be required by the department of taxation, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof.
Haw. Rev. Stat. § 256B-6 — HI Code / Division 1 / Title 14 / Chapter 256B / Section 256B-6
Account funds.
Status: in_force

Moneys in an ABLE savings account:

(1) Shall be exempt from attachment, execution, or garnishment as provided by section 651-124; and

(2) May be claimed by the medicaid plan subject to limitations imposed by the Secretary. [L 2015, c 206, pt of §2]
Haw. Rev. Stat. § 239-25 — HI Code / Division 1 / Title 14 / Chapter 239 / Section 239-25
Nonseverability.
Status: in_force

If a court of competent jurisdiction enters a final judgment on the merits that:

(1) Is based on federal law;

(2) Is no longer subject to appeal; and

(3) Substantially limits or impairs the essential elements of sections 239-21 to 239-24,

then sections 239-21 to 239-24 are invalid and have no legal effect as of the date of entry of the judgment. [L 2002, c 209, pt of §2]
Haw. Rev. Stat. § 235-9.5 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-9.5
Stock options from qualified high technology businesses excluded from taxation.
Status: in_force

(a) Notwithstanding any law to the contrary, all income earned and proceeds derived from stock options or stock, including stock issued through the exercise of stock options or warrants, from a qualified high technology business or from a holding company of a qualified high technology business by an employee, officer, or director of the qualified high technology business, or investor who qualifies for the credit under section 235-110.9, that would otherwise be taxed as ordinary income or as capital gains to those persons shall be excluded from taxation under this chapter.

Similar provisions shall apply to options to acquire equity interests and to equity interests themselves with regard to entities other than corporations.

(b) For the purposes of this section:

"Holding company of a qualified high technology business" means any business entity that possesses:

(1) At least eighty per cent of the total voting power of the stock or other interest; and

(2) At least eighty per cent of the total value of the stock or other interest;

in the qualified high technology business.

"Income earned and proceeds derived from stock options or stock" includes income from:

(1) Dividends from stock or stock received through the exercise of stock options or warrants;

(2) The receipt or the exercise of stock options or warrants; or

(3) The sale of stock options or stock, including stock issued through the exercise of stock options or warrants.

"Qualified high technology business" means the same as defined in section 235-7.3. [L 1999, c 178, §20; am L 2000, c 297, §7; am L 2001, c 221, §8]
Haw. Rev. Stat. § 244D-1 — HI Code / Division 1 / Title 14 / Chapter 244D / Section 244D-1
Definitions.
Status: in_force

Wherever used in this chapter, unless the context otherwise requires:

"Alcohol" means ethyl alcohol, hydrated oxide of ethyl, or spirits of wine, from whatever source or by whatever process produced.

"Beer" means any alcoholic beverage obtained by the fermentation or any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof in water, and includes ale, porter, brown, stout, lager beer, small beer, and strong beer but does not include sake, known as Japanese rice wine, or cooler beverage.

"Cooler beverage" means either a:

(1) Wine cooler containing wine and more than fifteen per cent added natural or artificial blending material, such as fruit juices, flavors, flavorings, or adjuncts, water (plain, carbonated, or sparkling), colorings, or preservatives, and that contains less than seven per cent of alcohol by volume; or

(2) Malt beverage cooler containing beer and added natural or artificial blending material, such as fruit juices, flavors, flavorings, colorings, or preservatives, and that contains less than seven per cent of alcohol by volume.

"Dealer" means the holder of a manufacturer's license, wholesaler's license, brewpub's license, winery's license, or small craft producer's license under the liquor law.

"Distilled spirits" means an alcoholic beverage obtained by the distillation of fermented agricultural products, and includes alcohol for beverage use, spirits of wine, whiskey, rum, brandy, and gin, including all dilutions and mixtures thereof, but does not include beer, draft beer, cooler beverage, or wine.

"Draft beer" means beer in an individual container of five gallons or more.

"Gallon" or "wine gallon" means that liquid measure containing one hundred twenty-eight fluid ounces (3.7854 liters).

"Licensed premises" shall have the same meaning as the term is used in chapter 281.

"Liquor" has the same meaning as set forth in section 281-1 and includes alcohol, and the liquor categories: beer, draft beer, cooler beverage, distilled spirits, and wine.

"Liquor commission" or "commission" means the liquor commission of each county.

"Liquor law" means chapter 281.

"Permittee" means the holder of a permit provided for in section 244D-2.

"Person" means an individual, partnership, society, unincorporated association, joint adventure, group, hui, joint stock company, corporation, trustee, or other fiduciary, or other entity.

"Sale" means any transfer of title or possession, or both, exchange or barter, in any manner or by any means whatsoever, for a consideration.

"Sparkling wine" means champagne and any other effervescent wine charged with more than 0.392 grams of carbon dioxide per 100 milliliters of wine, whether artificially or as a result of secondary fermentation of wine within the container.

"Still wine" means any nonsparkling wine and shall include those wines containing not more than 0.392 grams of carbon dioxide per 100 milliliters of wine.

"Unit price" for a liquor category taxed under this chapter shall be equal to the total dollar volume of taxable sales, exclusive of all federal and state excise taxes, reported for such liquor category, divided by the total gallons of taxable sales reported for such liquor category over the same period.

"Use" means any use, whether such use is of such nature as to cause the property to be appreciably consumed or not, or the keeping of such property for such use or for sale, and shall include the exercise of any right or power over tangible personal property incident to the ownership of that property.

"Wine" means the product obtained from normal alcoholic fermentation of the juice of sound ripe grapes or other agricultural products containing natural or added sugar or any such alcoholic beverage to which is added grape brandy, fruit brandy, or spirits of wine, which is distilled from the particular agricultural product or products of which the wine is made and other rectified wine products and by whatever name and which contains not more than twenty-four per cent of alcohol by volume, and includes vermouth and sake, known as Japanese rice wine, but does not include cooler beverage. [L Sp 1984 1st, c 1, pt of §2; am L 1986, c 344, §2; am L 1989, c 149, §1; am L 1994, c 174, §1; am L 2017, c 12, §57; am L 2021, c 116, §5; am L 2025, c 90, §2]
Haw. Rev. Stat. § 237-29.57 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-29.57
Exemption for intangible property used outside the State.
Status: in_force

(a) All of the value or gross proceeds arising from the use of intangible property outside the State shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter.

(b) For the purposes of this section, the seller or licensor shall take from the purchaser a certificate, in a form prescribed by the department, certifying that the intangible property is to be used outside the State. Any purchaser who furnishes the certificate shall be obligated to pay to the seller or licensor, upon demand, the amount of the additional tax that is imposed upon the seller or licensor, if the intangible property is used in this State. [L 2018, c 183, §1]
Haw. Rev. Stat. § 235-110 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-110
Credits and refunds.
Status: in_force

(a) If the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or not on the basis of installments, exceeds the amount determined to be the correct amount of the tax, the amount of the credit shall be refunded in the manner provided in section 231-23(c). Within the meaning of this subsection, each amount of tax deducted and withheld from a taxpayer's wages is an installment of taxes paid by the taxpayer. A refund or credit shall be made to an employer only to the extent that the amount of overpayment claimed by the employer as a credit or refund was not deducted and withheld by the employer.

(b) This section does not apply in the case of a payment made pursuant to an assessment by the department of taxation under section 235-107 or 235-108(b). No refund or overpayment credit may be had under this section in any event unless the original payment of the tax was due to the law having been interpreted or applied in respect of the taxpayer concerned differently than in respect of the taxpayers generally. 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 under section 40-35 are exclusive. However, nothing in this subsection shall be deemed applicable to a credit or refund authorized by sections 235-55, 235-66, or 235-71, or resulting from the tax as returned being less than the tax as estimated; in any of these cases a credit or refund is authorized even though the tax for the taxable year remains subject to determination by the department and assessment as provided by law.

(c) Any refund earned under this section shall be made in the manner provided in section 231-23(c). [L Sp 1957, c 1, pt of §2; am L 1959, c 277, §13; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §4(b), (c), (d); Supp, §121-44; HRS §235-110]

Revision Note

In subsections (a) and (c), "231-23(c)" substituted for "231-23(d)" pursuant to §23G-15.
Haw. Rev. Stat. § 236E-25 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-25
Disclosure of federal return information.
Status: in_force

When receipt of estate tax information from the Internal Revenue Service under section 6103(d) of the Internal Revenue Code discloses possible Hawaii estate tax liability, any person possessing federal estate tax information shall be required to submit the information to the department upon request to enable the department to audit the return or Internal Revenue Service audit adjustments and to determine whether any tax, penalty, or interest is due the State where such return information has not been filed with the department. A claim of confidentiality shall not prohibit the dissemination of tax information required under this section and shall not constitute grounds for failing or refusing to surrender the tax information to the department in the administration and enforcement of this chapter. Any tax information submitted in compliance with this section shall be treated and afforded with the same confidentiality as a return filed under section 235-116.
Haw. Rev. Stat. § 231-54 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-54
Hearings; appeals.
Status: in_force

At the time a setoff is identified, the debtor shall be notified by the comptroller or the director of taxation of the State's intention to apply the debtor's debt against the refund. The notice shall state that the debtor within thirty days may request a hearing before the claimant agency to contest the setoff. No issues that have been previously litigated shall be considered at the hearing. Appeals from the hearing allowed under this section shall be in accordance with chapter 91.
Haw. Rev. Stat. § 255D-9 — HI Code / Division 1 / Title 14 / Chapter 255D / Section 255D-9
Seller and third party liability.
Status: in_force

[See Note below.] (a) A certified service provider is the agent of a seller, with whom the certified service provider has contracted for the collection and remittance of sales and use taxes. As the seller's agent, the certified service provider is liable for the sales and use taxes due each member state on all sales transactions it processes for the seller except as provided in this section.

(b) A seller that contracts with a certified service provider is not liable to the State for sales or use taxes due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud. In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on the transactions processed by the certified service provider. A seller is subject to audit for transactions not processed by the certified service provider. The member states acting jointly may perform a system check of the seller and review the seller's procedures to determine if the certified service provider's system is functioning properly and the extent to which the seller's transactions are being processed by the certified service provider.

(c) A person that provides a certified automated system is responsible for the proper functioning of that system and is liable to the State for underpayments of tax attributable to errors in the functioning of the certified automated system. A seller that uses a certified automated system remains responsible and is liable to the State for reporting and remitting tax.

(d) A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard. [L 2003, c 173, pt of §2]
Haw. Rev. Stat. § 231-4.3 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-4.3
Investigators; appointment and powers.
Status: in_force

The director may appoint and commission one or more investigators as the exigencies of the public service may require. Persons appointed and commissioned under this section shall have and may exercise all of the powers and authority and the benefits and privileges of a police officer or of a deputy sheriff, including the power to arrest; provided that such powers shall remain in force and effect only while in actual performance of their duties. These investigators shall consist of personnel whose primary duty is to conduct investigations as directed by the director. Persons appointed and commissioned under this section shall be exempt from chapter 76.
Haw. Rev. Stat. § 238-2.2 — HI Code / Division 1 / Title 14 / Chapter 238 / Section 238-2.2
Imposition of tax on intangible property.
Status: in_force

There is hereby levied an excise tax on the value of intangible property acquired from an unlicensed seller and imported or used in the State. The tax imposed by this chapter shall accrue when the intangible property is acquired by the importer or purchaser and becomes subject to the taxing jurisdiction of the State. The rate of the tax hereby imposed shall be four per cent of the value of the intangible property.
Haw. Rev. Stat. § 237-8.6 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-8.6
County surcharge on state tax; administration.
Status: repealed

[Section repealed December 31, 2030. L Sp 2017, c 1, §6.] (a) The county surcharge on state tax, upon the adoption of county ordinances and in accordance with the requirements of section 46-16.8, shall be levied, assessed, and collected as provided in this section on all gross proceeds and gross income taxable under this chapter. No county shall set the surcharge on state tax at a rate greater than one-half per cent of all gross proceeds and gross income taxable under this chapter. All provisions of this chapter shall apply to the county surcharge on state tax. With respect to the surcharge, the director of taxation shall have all the rights and powers provided under this chapter. In addition, the director of taxation shall have the exclusive rights and power to determine the county or counties in which a person is engaged in business and, in the case of a person engaged in business in more than one county, the director shall determine, through apportionment or other means, that portion of the surcharge on state tax attributable to business conducted in each county.

(b) Each county surcharge on state tax that may be adopted, extended, or amended pursuant to section 46-16.8 shall be levied beginning in a taxable year after the adoption of the relevant county ordinance; provided that no surcharge on state tax may be levied:

(1) Before:

(A) January 1, 2007, if the county surcharge on state tax was established by an ordinance adopted before December 31, 2005;

(B) January 1, 2019, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but before June 30, 2018;

(C) January 1, 2020, if the county surcharge on state tax was established by the adoption of an ordinance on or after June 30, 2018, but before March 31, 2019;

(D) January 1, 2024, if the county surcharge on state tax was established by the adoption of an ordinance on or after March 31, 2019, but before August 1, 2023; or

(E) January 1, 2025, if the county surcharge on state tax was established by the adoption of an ordinance on or after August 1, 2023, but before December 31, 2023; and

(2) After December 31, 2030.

(c) The county surcharge on state tax, if adopted, shall be imposed on the gross proceeds or gross income of all written contracts that require the passing on of the taxes imposed under this chapter; provided that if the gross proceeds or gross income are received as payments beginning in the taxable year in which the taxes become effective, on contracts entered into before June 30 of the year prior to the taxable year in which the taxes become effective, and the written contracts do not provide for the passing on of increased rates of taxes, the county surcharge on state tax shall not be imposed on the gross proceeds or gross income covered under the written contracts. The county surcharge on state tax shall be imposed on the gross proceeds or gross income from all contracts entered into on or after June 30 of the year prior to the taxable year in which the taxes become effective, regardless of whether the contract allows for the passing on of any tax or any tax increases.

(d) No county surcharge on state tax shall be established on any:

(1) Gross income or gross proceeds taxable under this chapter at the one-half per cent tax rate;

(2) Gross income or gross proceeds taxable under this chapter at the 0.15 per cent tax rate; or

(3) Transactions, amounts, persons, gross income, or gross proceeds exempt from tax under this chapter.

(e) The director of taxation shall revise the general excise tax forms to provide for the clear and separate designation of the imposition and payment of the county surcharge on state tax.

(f) The taxpayer shall designate the taxation district to which the county surcharge on state tax is assigned in accordance with rules adopted by the director of taxation under chapter 91. The taxpayer shall file a schedule with the taxpayer's periodic and annual general excise tax returns summarizing the amount of taxes assigned to each taxation district.

(g) The penalties provided by section 231-39 for failure to file a tax return shall be imposed on the amount of surcharge due on the return being filed for the failure to file the schedule required to accompany the return. In addition, there shall be added to the tax an amount equal to ten per cent of the amount of the surcharge and tax due on the return being filed for the failure to file the schedule or the failure to correctly report the assignment of the general excise tax by taxation district on the schedule required under this subsection.

(h) All taxpayers who file on a fiscal year basis whose fiscal year ends after December 31 of the year prior to the taxable year in which the taxes become effective, shall file a short period annual return for the period preceding January 1 of the taxable year in which the taxes become effective. Each fiscal year taxpayer shall also file a short period annual return for the period starting on January 1 of the taxable year in which the taxes become effective, and ending before January 1 of the following year. [L 2005, c 247, §§3, 9; am L 2015, c 240, §§5, 7; am L Sp 2017, c 1, §3; am L 2018, c 11, §2; am L 2023, c 48, §3]
Haw. Rev. Stat. § 256-1 — HI Code / Division 1 / Title 14 / Chapter 256 / Section 256-1
Definitions.
Status: in_force

As used in this chapter, unless the context otherwise requires:

"Account" or "college account" means an individual savings account established in accordance with this chapter.

"Account owner" means the individual who enters into a tuition savings agreement pursuant to this chapter and as defined under the proposed income tax regulations, sections 1.529-1 to 1.529-6 or the final regulations relating to section 529 of the Internal Revenue Code of 1986, as amended, whichever is applicable, including any amendments or supplements thereto.

"Designated beneficiary" means a designated beneficiary as defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.

"Eligible educational institution" means an institution defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.

"Financial organization" means an organization authorized to do business in the State of Hawaii that is:

(1) Certified as an insurer by the insurance commissioner;

(2) Licensed or chartered as a financial institution by the commissioner of financial institutions;

(3) Chartered by an agency of the federal government;

(4) Subject to the jurisdiction and regulation of the securities and exchange commission of the federal government; or

(5) Any other entity otherwise authorized to act in this State as a trustee pursuant to the provisions of the Employee Retirement Income Security Act of 1974, as may be amended from time to time.

"Management contract" means the contract executed by the director of finance and a financial organization selected to act as a depository and manager of the program.

"Member of the family" means a family member as defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.

"Nonqualified withdrawal" means a withdrawal from an account that is not:

(1) Used for qualified higher education expenses of the designated beneficiary;

(2) Made on account of the death or disability of the designated beneficiary; or

(3) Made on the account of a scholarship (or allowance or payment described in section 135(d)(1)(B) or (C) of the Internal Revenue Code of 1986, as amended) received by the designated beneficiary, to the extent the withdrawal does not exceed the amount of the scholarship, allowance, or payment.

"Program" means the college savings program.

"Program manager" means a financial organization selected by the director of finance to act as a depository and manager of the program.

"Qualified higher education expenses" means any qualified higher education expense defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.

"Qualified withdrawal" means withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account.

"Tuition savings agreement" means an agreement between the director of finance or a financial organization and the account owner. [L 1999, c 81, pt of §2; am L 2000, c 90, §1]
Haw. Rev. Stat. § 243-13 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-13
Director empowered to make examinations, penalty, etc.
Status: in_force

The director of taxation and the director's authorized assistants may subpoena witnesses, compel the production of books, papers, and other records, administer oaths, examine books and records, and hear and take such evidence in relation to any matters within the director's jurisdiction, and upon which it is necessary or proper that the director be informed, under this chapter, as in the director's discretion the director may deem proper. The circuit courts shall have power, upon request of the director or any such assistant, to enforce by proper contempt proceedings the attendance of witnesses and the giving of testimony by them, and the production of books, papers, and records. False swearing under oath as to any material fact at any hearing held under this section shall be subject to chapter 710, part V. If the examination discloses that any reports of distributors or other persons theretofore filed with the director by the distributors or other persons, pursuant to the requirements of this chapter, have shown incorrectly the number of gallons of fuel sold or used, or the tax accruing thereon, so that any additional license taxes are due and payable under this chapter, the director shall proceed to collect such unpaid license taxes.
Haw. Rev. Stat. § 231-96 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-96
Failure to record transaction.
Status: in_force

(a) It shall be unlawful for any person doing business under chapter 237, other than casual sales, to conduct any transaction in cash and fail to:

(1) Offer a receipt or other record of the transaction; and

(2) Maintain a contemporaneously generated record of all business transactions conducted each day,

whether handwritten or generated by a manually operated or electronic cash register. Each day a person is in violation of this section shall be treated as a separate violation.

(b) Except as provided in subsection (c), any person who violates this section shall be subject to a fine not to exceed $1,000; provided that if the person is a cash-based business, the fine shall not exceed $2,000.

(c) If the person, including a cash-based business, is otherwise in compliance with title 14 at the time of violation of this section, the fine for a violation of this section shall be commensurate with the violation, as determined by the department in accordance with rules adopted pursuant to chapter 91. [L 2009, c 134, pt of §2, §13(3); am L 2011, c 102, §1; am L 2013, c 58, §1 and c 162, §1]
Haw. Rev. Stat. § 237-47 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-47
District judges; concurrent civil jurisdiction in tax collections.
Status: in_force

Except as otherwise specifically provided by this chapter, the several district judges shall have concurrent jurisdiction with the circuit courts to hear and determine all civil actions at law in assumpsit for the collection and enforcement of collection and payment of all taxes assessed hereunder, irrespective of the amount claimed.
Haw. Rev. Stat. § 245-37 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-37
Sale or purchase of packages of cigarettes without stamps; fines and penalties.
Status: in_force

(a) Beginning April 1, 2001, a person shall be guilty of a class C felony if the person:

(1) Is not a licensee, and knowingly possesses, keeps, stores, acquires, or transports three thousand or more cigarettes that do not have stamps affixed to the cigarette packages as required by this part; or

(2) Knowingly sells one thousand or more cigarettes that do not have stamps affixed to the cigarette packages as required by this part.

(b) Beginning April 1, 2001, a person shall be guilty of a misdemeanor if the person:

(1) Is not a licensee, and knowingly possesses, keeps, stores, acquires, or transports one thousand or more cigarettes that do not have stamps affixed to the cigarette packages as required by this part; or

(2) Knowingly sells less than one thousand cigarettes that do not have stamps affixed to the cigarette packages as required by this part.

(c) In addition to any other authorized disposition, a corporation found in violation of:

(1) Subsection (a) is subject to a fine in an amount not to exceed $50,000; and

(2) Subsection (b) is subject to a fine in an amount not to exceed $25,000. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]
Haw. Rev. Stat. § 238-9.5 — HI Code / Division 1 / Title 14 / Chapter 238 / Section 238-9.5
Motor vehicle importation; report by dealers; proof of payment.
Status: in_force

(a) Every dealer, as defined in section 437-1.1, shall submit a report to the director, on or before the last day of each calendar month, for all motor vehicles delivered by the dealer in the prior month as a courtesy delivery. The report shall contain the name and address of the dealer making the courtesy delivery, name and address of the seller of the vehicle, type of motor vehicle, the landed value of the vehicle, the name and address of the purchaser or importer, the date of importation, and other information relevant to the courtesy delivery as requested by the director.

As used in this section, "courtesy delivery" means the preparation for delivery and the delivery by a dealer of a motor vehicle imported into the State by a person who purchased the motor vehicle from an out-of-state motor vehicle manufacturer or an out-of-state dealer and does not apply to motor vehicles sold by the in-state dealer.

(b) The director of taxation shall prepare forms necessary for individuals importing motor vehicles into the State to prove payment of the use tax necessary to register the motor vehicle. [L 1993, c 45, §1; am L 2002, c 225, §1]
Haw. Rev. Stat. § 249-17.5 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-17.5
Bikeway fund; established.
Status: in_force

All fees collected under sections 249-14 and 249-14.5 shall be deposited in a fund to be known as the "bikeway fund" and shall be expended in the county in which the fees are collected for the following purposes:

(1) For acquisition, design, construction, improvement, repair, and maintenance of bikeways, including the installation and repair of storm drains and bridges;

(2) For installation, maintenance, and repair of bikeway lights and power, including replacement of old bikeway lights;

(3) For purposes and functions connected with traffic control and preservation of safety upon bikeways;

(4) For payment of interest on and redemption of bonds issued to finance bikeway construction and improvements; and

(5) For the promotion of bicycling transportation and recreation. [L 1974, c 105, pt of §2; am L 1984, c 273, §2; am L 1988, c 264, §7]
Haw. Rev. Stat. § 237-29.7 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-29.7
Exemption of insurance companies.
Status: in_force

This chapter shall not apply to the gross income or gross proceeds of insurance companies authorized to do business under chapter 431; except this exemption shall not apply to any gross income or gross proceeds received after December 31, 1991, as rents from investments in real property in this State; provided that gross income or gross proceeds from investments in real property received by insurance companies after December 31, 1991, under written contracts entered into before January 1, 1992, that do not provide for the passing on of taxes or tax increases shall not be taxed until the contracts are renegotiated, renewed, or extended.

Revision Note

"January 1, 1992" substituted for "the effective date of this Act" pursuant to §23G-15.
Haw. Rev. Stat. § 241-4.7 — HI Code / Division 1 / Title 14 / Chapter 241 / Section 241-4.7
Low-income housing; income tax credit.
Status: in_force

The low-income housing tax credit provided under section 235-110.8 shall be operative for this chapter.
Haw. Rev. Stat. § 237-24.75 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-24.75
Additional exemptions.
Status: in_force

In addition to the amounts exempt under section 237-24, this chapter shall not apply to:

(1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII;

(2) Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances made pursuant to a contract with the Hawaii tourism authority under section 201B-7; and

(3) Amounts received by a professional employer organization that is registered with the department of labor and industrial relations pursuant to chapter 373L, from a client company equal to amounts that are disbursed by the professional employer organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to covered employees at a client company; provided that this exemption shall not apply to amounts received by a professional employer organization after:

(A) Notification from the department of labor and industrial relations that the professional employer organization has not fulfilled or maintained the registration requirements under this chapter; or

(B) A determination by the department that the professional employer organization has failed to pay any tax withholding for covered employees or any federal or state taxes for which the professional employer organization is responsible.

As used in this paragraph, "professional employer organization", "client company", and "covered employee" shall have the meanings provided in section 373L-1. [L 2002, c 176, §3; am L 2007, c 173, §2 and c 225, §3; am L 2013, c 174, §3]
Haw. Rev. Stat. § 235-110.7 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-110.7
Capital goods excise tax credit.
Status: in_force

(a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter a capital goods excise tax credit, which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

The amount of the tax credit shall be four per cent of the cost of the eligible depreciable tangible personal property used by the taxpayer in a trade or business and placed in service within Hawaii after December 31, 2009.

In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for eligible depreciable tangible personal property that is placed in service by the entity. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rules.

In the case of eligible depreciable tangible personal property for which a credit for sales or use taxes paid to another state is allowable under section 238-3(i), the amount of the tax credit allowed under this section shall not exceed the amount of use tax actually paid under chapter 238 relating to the tangible personal property.

If a deduction is taken under section 179 (with respect to election to expense certain depreciable business assets) of the Internal Revenue Code of 1954, as amended, no tax credit shall be allowed for that portion of the cost of property for which the deduction was taken.

(b) If the capital goods excise tax credit allowed under subsection (a) exceeds the taxpayer's net income tax liability, the excess of credit over liability shall be refunded to the taxpayer; provided that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

All claims for tax credits under this section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(c) Application for the capital goods excise tax credit shall be upon forms provided by the department of taxation.

(d) Sections 47 (with respect to dispositions of section 38 property and the recapture percentages) of the Internal Revenue Code of 1954, as amended, as of December 31, 1984, and 280F as operative for this chapter (with respect to limitation on investment tax credit and depreciation for luxury automobiles; limitation where certain property used for personal purposes) of the Internal Revenue Code of 1954, as amended, shall be operative for purposes of this section.

(e) As used in this section, the definition of section 38 property (with respect to investment in depreciable tangible personal property) as defined by section 48(a)(1)(A), (a)(1)(B), (a)(3), (a)(4), (a)(7), (a)(8), (a)(10)(A), (b), (c), (f), (l), (m), and (s) of the Internal Revenue Code of 1954, as amended as of December 31, 1984, is operative for the purposes of this section only.

(f) As used in this section:

"Cost" means the:

(1) Actual invoice price of the tangible personal property; or

(2) Basis from which depreciation is taken under section 167 (with respect to depreciation) or from which a deduction may be taken under section 168 (with respect to accelerated cost recovery system) of the Internal Revenue Code of 1954, as amended,

whichever is less.

"Eligible depreciable tangible personal property" is section 38 property as defined by the operative provisions of section 48 and having a depreciable life under section 167 or for which a deduction may be taken under section 168 of the Internal Revenue Code of 1954, as amended.

"Placed in service" means the earliest of the following taxable years:

(1) The taxable year in which, under the:

(A) Taxpayer's depreciation practice, the period for depreciation; or

(B) Accelerated cost recovery system, a claim for recovery allowances,

with respect to the property begins; or

(2) The taxable year in which the property is placed in a condition or state of readiness and availability for a specifically assigned function.

"Purchase" means an acquisition of property.

"Tangible personal property" means tangible personal property that is placed in service within Hawaii after December 31, 1987, and the purchase or importation of which resulted in a transaction that was subject to the imposition and payment of tax at the rate of four per cent under chapter 237 or 238. "Tangible personal property" does not include tangible personal property that is an integral part of a building or structure or tangible personal property used in a foreign-trade zone, as defined under chapter 212. [L 1987, c 239, §1(2); am L 1988, c 141, §21; am L 1989, c 7, §1; am L 1990, c 184, §§7, 8; am L 1992, c 235, §6; am L 2007, c 9, §12; am L 2009, c 178, §3; am L 2018, c 18, §10]
Haw. Rev. Stat. § 237-9.3 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-9.3
General excise tax benefits; denial of tax benefits for failure to properly claim.
Status: in_force

(a) Notwithstanding any other law to the contrary, a person shall not be entitled to any general excise tax benefit under this chapter unless the person claiming the general excise tax benefit:

(1) Obtains a license to engage in and conduct business as required under section 237-9; and

(2) Files the annual general excise tax reconciliation tax return as provided under this chapter or chapter 231 not later than twelve months from the due date prescribed for the return.

(b) The director may require any taxpayer to furnish information to determine the validity of any general excise tax benefit and may adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this section.

(c) The director may waive the denial of the general excise tax benefit under subsection (a) if the failure to comply is due to reasonable cause and not to the wilful neglect of the taxpayer.

(d) The director shall first give written notice to a nonprofit organization to comply with the requirements of this section before imposing a denial of any general excise tax benefit under this chapter, and the organization shall have ninety days from the date of the receipt of the notice to comply with the requirements.

(e) For purposes of this section:

"General excise tax benefit" means any tax exemption, exclusion of a taxable amount, a reduction from the measure of a tax imposed, a tax deduction, a tax credit, a lower rate of tax, a segregation or division of taxable amounts between multiple taxpayers involved in the same transaction, or any income splitting allowed under this chapter.

"Nonprofit organization" means a corporate entity, association, or other duly chartered entity that is registered with the State and is exempt from the application of this chapter pursuant to section 237-23(a)(3), (4), (5), (6), or (7). [L 2010, c 155, pt of §2; am L 2012, c 219, §1; am L 2013, c 52, §1]
Haw. Rev. Stat. § 232-1 — HI Code / Division 1 / Title 14 / Chapter 232 / Section 232-1
Appeals by persons under contractual obligations.
Status: in_force

Whenever any person is under a contractual obligation to pay a tax assessed against another, the person shall have the same rights of appeal to the taxation board of review, the tax appeal court, and the intermediate appellate court, subject to chapter 602, in the person's own name, as if the tax were assessed against the person. The person against whom the tax is assessed shall also have a right to appear and be heard on any such application or appeal.
Haw. Rev. Stat. § 237D-3 — HI Code / Division 1 / Title 14 / Chapter 237D / Section 237D-3
Exemptions.
Status: in_force

This chapter shall not apply to:

(1) Health care facilities including all such facilities enumerated in section 321-11(10);

(2) School dormitories of a public or private educational institution providing education in grades kindergarten through twelve, or of any institution of higher education;

(3) Lodging provided by nonprofit corporations or associations for religious, charitable, or educational purposes; provided that this exemption shall apply only to the activities of the religious, charitable, or educational corporation or association as such and not to any rental or gross rental the primary purpose of which is to produce income even if the income is used for or in furtherance of the exempt activities of such religious, charitable, or educational corporation or association;

(4) Living accommodations for persons in the military on permanent duty assignment to Hawaii, including the furnishing of transient accommodations to those military personnel who receive temporary lodging allowances while seeking accommodations in Hawaii or while awaiting reassignment to new duty stations outside the State;

(5) Low-income renters receiving rental subsistence from the state or federal governments and whose rental periods are for durations shorter than sixty days;

(6) Operators of transient accommodations who furnish accommodations to full-time students enrolled in an institution offering post-secondary education. The director of taxation shall determine what shall be deemed acceptable proof of full-time enrollment. This exemption shall also apply to operators who furnish transient accommodations to students during summer employment;

(7) Accommodations furnished without charge such as, but not limited to, complimentary accommodations, accommodations furnished to contract personnel such as physicians, golf or tennis professionals, swimming and dancing instructors, and other personnel to whom no salary is paid or to employees who receive room and board as part of their salary or compensation; and

(8) Accommodations furnished to foreign diplomats and consular officials who are holding cards issued or authorized by the United States Department of State granting them an exemption from state taxes. [L 1986, c 340, pt of §1; am L 1988, c 241, §4; am L 2000, c 38, §2]
Haw. Rev. Stat. § 255D-7 — HI Code / Division 1 / Title 14 / Chapter 255D / Section 255D-7
Cooperating sovereigns.
Status: in_force

The agreement authorized by this chapter is an accord among individual cooperating sovereigns in furtherance of their governmental functions. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state.
Haw. Rev. Stat. § 245-12 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-12
Investigations; contempts; fees.
Status: in_force

The director of taxation, and any agent of the director duly authorized by the director to conduct any inquiry, investigation, or hearing hereunder, shall have power to administer oaths and take testimony under oath relative to the matter of inquiry or investigation. At any hearing ordered by the director, the director or the director's agent authorized to conduct the hearing may subpoena witnesses and require the production of books, papers, and documents pertinent to the inquiry. No witness under subpoena authorized to be issued by this section shall be excused from testifying or from producing books or papers on the ground that such testimony or the production of such books or other documentary evidence would tend to incriminate the witness, or subject the witness to penalty or forfeiture; but no person shall be prosecuted, punished, or subjected to any penalty or forfeiture for or on account of any act, transaction, matter, or thing concerning which the person shall, under oath, have testified or produced documentary evidence.

Contempts. If any person disobeys such process or, having appeared in obedience thereto, refuses to answer any pertinent question put to the person by the director or the director's authorized agent, or to produce any books and papers pursuant thereto, the director or such agent may apply to the circuit court of the circuit wherein the taxpayer resides or wherein the transaction, act, or activity under investigation has occurred, or to any judge of such court, setting forth such disobedience to process or refusal to answer, and the court or the judge shall cite such person to appear before the court or the judge to answer such question or to produce such books and papers and, upon the person's refusal so to do, shall commit such person to jail until the person shall testify, but not for a longer period than sixty days. Notwithstanding the serving of the term of such commitment by any person, the director may proceed in all respects with such inquiry and examination as if the witness had not previously been called upon to testify.

Fees. Officers who serve subpoenas issued by the director or under the director's authority, and witnesses attending hearings conducted by the director hereunder, shall receive like fees and compensation as officers and witnesses in the circuit courts of the State, to be paid on vouchers of the director, from any moneys available for litigation expenses of the department of taxation. [L 1939, c 220, §13; RL 1945, §5762; RL 1955, §125-12; am L Sp 1959 2d, c 1, §16; HRS §245-12; gen ch 1985]
Haw. Rev. Stat. § 237-15 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-15
Technicians.
Status: in_force

When technicians supply dentists or physicians with dentures, orthodontic devices, braces, and similar items which have been prepared by the technician in accordance with specifications furnished by the dentist or physician, and such items are to be used by the dentist or physician in the dentist's or physician's professional practice for a particular patient who is to pay the dentist or physician for the same as a part of the dentist's or physician's professional services, the technician shall be taxed as though the technician were a manufacturer selling a product to a licensed retailer, rather than at the rate of four per cent which is generally applied to professions and services.
Haw. Rev. Stat. § 236D-9 — HI Code / Division 1 / Title 14 / Chapter 236D / Section 236D-9
Amended returns; final determination.
Status: in_force

(a) If an amended federal return is filed, there immediately shall be filed with the department an amended Hawaii report with a true copy of the amended federal return. If an additional tax under this chapter is required to be paid pursuant to the amended return, the person required to pay the tax shall pay the additional tax, together with interest as provided in section 236D-7, at the same time the amended return is filed, subject to any extension election under section 236D-7.

(b) Upon final determination of the federal tax due, the person, within sixty days after the determination, shall give written notice of the determination to the department in such forms as may be prescribed. If any additional tax is due under this chapter by reason of the determination, the person shall pay the tax, together with interest as provided in section 236D-7, at the same time the notice is filed, subject to any extension election under section 236D-7. [L 1983, c 217, pt of §1; am L 1994, c 142, §8]
Haw. Rev. Stat. § 237-40 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-40
Limitation period.
Status: in_force

(a) General rule. The amount of excise 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 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;

(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.

(b) Exceptions. In the case of a false or fraudulent return with intent to evade tax, or of a failure to file the annual return, the tax may be assessed or levied at any time; provided that the burden of proof with respect to the issues of falsity or fraud and intent to evade tax shall be upon the State.

(c) Extension by agreement. Where, before the expiration of the period prescribed in subsection (a) or (d), both the department of taxation and the taxpayer have consented in writing to the assessment or levy of the tax after the date fixed by subsection (a) or the credit or refund of the tax after the date fixed by subsection (d), the tax may be assessed or levied or the overpayment, if any, may be credited or refunded at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

(d) Refunds. No credit or refund shall be allowed for any tax imposed by this chapter, unless a claim for such credit or refund shall be filed as follows:

(1) If an annual return is timely filed, or is filed within three years after the date prescribed for filing the annual return, then the credit or refund shall be claimed within three years after the date the annual return was filed or the date prescribed for filing the annual return, whichever is later.

(2) If an annual return is not filed, or is filed more than three years after the date prescribed for filing the annual return, a claim for credit or refund shall be filed within:

(A) Three years after the payment of the tax; or

(B) Three years after the date prescribed for the filing of the annual return,

whichever is later.

Paragraphs (1) and (2) are mutually exclusive. The limitation shall not apply to a credit or refund pursuant to an appeal provided for by section 237-42. [L 1943, c 140, §2; RL 1945, §5471; RL 1955, §117-35; am L Sp 1957, c 1, §29; am L Sp 1959 2d, c 1, §16; HRS §237-40; am L 1969, c 274, §3; am L 1971, c 9, §2; am L 1983, c 103, §1; am L 1992, c 104, §1; am L 1993, c 257, §2; am L 2009, c 166, §7; am L 2025, c 118, §2]
Haw. Rev. Stat. § 235-38.5 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-38.5
Application.
Status: in_force

It is the intent of the legislature that in administering this chapter, this part, and sections 235-4 and 235-5 or as a member of or administering the multistate tax compact under chapter 255 the department of taxation shall not use or allow the use of the worldwide method of unitary taxation upheld in Container Corporation of America v. The Franchise Tax Board, 463 U.S. 159. It is the intent of the legislature that the department of taxation shall continue to apply this chapter, part, sections 235-4 and 235-5, and chapter 255 as they were applied before the above case was decided.
Haw. Rev. Stat. § 245-9 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-9
Inspection.
Status: in_force

(a) The department and the attorney general may examine all records required to be kept or filed under this chapter, and books, papers, and records of any person engaged in the business of wholesaling or dealing cigarettes and tobacco products, to verify the accuracy of the payment of the taxes imposed by this chapter. Every person in possession of any books, papers, and records, and the person's agents and employees, are directed and required to give the department and the attorney general the means, facilities, and opportunities for the examinations.

(b) The department and the attorney general may inspect the operations, premises, and storage areas of any entity engaged in the sale of cigarettes, or the contents of a specific vending machine, during regular business hours. This inspection shall include inspection of all statements, books, papers, and records in whatever format, including electronic format, pertaining to the acquisition, possession, transportation, sale, or use of packages of cigarettes and tobacco products other than cigarettes, to verify the accuracy of the payment of taxes imposed by this chapter, and of the contents of cartons and shipping or storage containers to ascertain that all individual packages of cigarettes have an affixed stamp of proper denomination as required by this chapter. This inspection may also verify that all stamps were produced under the authority of the department. Every entity in possession of any books, papers, and records, and the entity's agents and employees, are directed and required to give the department and the attorney general the means, facilities, and opportunities for the examinations.

(c) If the department or the attorney general has reasonable cause to believe and does believe that cigarettes, stamps, or counterfeit stamps are being acquired, possessed, transported, kept, sold, or offered for sale in violation of this chapter, the department or the attorney general may investigate or search the vehicle or premises in which the cigarettes, stamps, or counterfeit stamps are believed to be located. If cigarettes, stamps, or counterfeit stamps are found in a vehicle, premises, or vending machine in violation of this chapter the cigarettes, vending machine, vehicle, stamps, counterfeit stamps, or other tangible personal property containing those cigarettes, stamps, or counterfeit stamps and any books and records in possession of the entity in control or possession of the cigarettes, stamps, or counterfeit stamps may be seized by the department or the attorney general and are subject to forfeiture as provided in this chapter and chapter 712A.

(d) For purposes of this chapter:

"Counterfeit stamp" means any stamp that is not printed, manufactured, distributed, or made by authority of the department.

"Vehicle" means an automobile, airplane, motorcycle, motorboat, or other motor-propelled vehicle. [L 1939, c 220, §10; RL 1945, §5759; RL 1955, §125-9; am L Sp 1959 2d, c 1, §16; HRS §245-9; gen ch 1985; am L 1993, c 220, §14; am L 2000, c 249, §§9, 20(2); am L 2002, c 94, §§1, 3; am L 2021, c 116, §9 and c 117, §26]
Haw. Rev. Stat. § 257-6 — HI Code / Division 1 / Title 14 / Chapter 257 / Section 257-6
Financial institutions.
Status: in_force

(a) Financial institutions shall be permitted to establish individual development accounts pursuant to this chapter. The financial institution shall certify to the fiduciary organization, on forms prescribed by same and accompanied by any documentation required by it, that such accounts have been established pursuant to all the provisions of this chapter and that deposits have been made on behalf of the account holder.

(b) A financial institution establishing an individual development account shall:

(1) Keep the account in the name of the account holder;

(2) Permit deposits to be made in the account by the following, subject to the indicated conditions:

(A) The account holder; or

(B) A contribution made on behalf of the account holder. Such deposits may include moneys to match the account holder's deposits. [L 1999, c 160, pt of §25]
Haw. Rev. Stat. § 235-110.25 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-110.25
Healthcare preceptor tax credit.
Status: in_force

(a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a healthcare preceptor tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the credit shall be equal to $1,000 for each volunteer-based supervised clinical training rotation supervised by the taxpayer, up to a maximum of $5,000 per taxable year, regardless of the number of volunteer-based supervised clinical training rotations supervised by the taxpayer.

(c) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this section.

(d) The preceptor credit assurance committee, established under section 321-2.7, shall:

(1) Maintain records of the names, addresses, and license numbers of the taxpayers claiming the credit under this section;

(2) Certify the number of volunteer-based supervised clinical training rotations each taxpayer conducted by:

(A) Verifying that the taxpayer meets the requirements to serve as a preceptor;

(B) Verifying the number of hours the taxpayer spent supervising an eligible student in each volunteer-based supervised clinical training rotation;

(C) Verifying that the eligible student was enrolled in an academic program in Hawaii; and

(D) Verifying that the taxpayer was uncompensated; and

(3) Certify the amount of the tax credit for each taxpayer for each taxable year and the cumulative amount of the tax credit.

Upon each determination, the preceptor credit assurance committee shall issue a certificate to the taxpayer verifying the number of volunteer-based supervised clinical training rotations supervised by the taxpayer, the credit amount certified for the taxpayer for each taxable year, and the cumulative amount of tax credits certified. The taxpayer shall file the certificate with the taxpayer's tax return with the department.

(e) If in any taxable year the annual amount of certified credits for all taxpayers reaches $1,500,000 in the aggregate, the preceptor credit assurance committee shall immediately discontinue certifying credits and notify the department of taxation. In no instance shall the preceptor credit assurance committee certify a total amount of credits exceeding $1,500,000 per taxable year. To comply with this restriction, the preceptor credit assurance committee shall certify or deny credits in the order submitted for certification; provided that credits shall not be submitted for certification prior to the supervised clinical training rotation being performed.

(f) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(g) For the purposes of this section:

"Academic program" means an academic degree granting program or graduate medical education program that:

(1) Holds either its principal accreditation or a physical location in Hawaii; and

(2) Provides education to students, of whom more than fifty per cent are residents of Hawaii.

"Advanced practice registered nurse student" means an individual participating in a nationally accredited academic program that is for the education of advanced practice registered nurses and recognized by the state board of nursing pursuant to chapter 457.

"Eligible professional degree or training certificate" means a degree or certificate that fulfills a requirement to be a physician or osteopathic physician, pursuant to chapter 453, an advanced practice registered nurse, pursuant to chapter 457, or a pharmacist, pursuant to chapter 461.

"Eligible student" means an advanced practice registered nurse student, medical student, or pharmacy student who is enrolled in an academic program.

"Medical student" means an individual participating in a nationally accredited academic program leading to the medical doctor or doctor of osteopathy degree. "Medical student" includes graduates from nationally accredited academic programs who have continued their training, in the role of resident or fellow, to obtain the additional qualifications needed for medical licensure, pursuant to chapter 453, or specialty certification.

"Nationally accredited" means holding an institutional accreditation by name to offer post-secondary medical primary care education. Accreditation for medical students shall be offered by the Liaison Committee on Medical Education or American Osteopathic Association Commission on Osteopathic College Accreditation. Accreditation for advanced practice registered nurse students shall be offered by the Commission on Collegiate Nursing Education.

"Pharmacy student" means an individual participating in an academic program that is nationally accredited for the training of individuals to become registered pharmacists pursuant to chapter 461.

"Preceptor" means a physician or osteopathic physician, licensed pursuant to chapter 453, an advanced practice registered nurse, licensed pursuant to chapter 457, or a pharmacist, licensed pursuant to chapter 461, who is a resident of Hawaii and who maintains a professional primary care practice in this State.

"Primary care" means the principal point of continuing care for patients provided by a healthcare provider, including health promotion, disease prevention, health maintenance, counseling, patient education, diagnosis and treatment of acute and chronic illnesses, and coordination of other specialist care that the patient may need.

"Volunteer-based supervised clinical training rotation" means an uncompensated period of supervised clinical training of an eligible student that totals at least eighty hours of supervisory time annually, in which a preceptor provides personalized instruction, training, and supervision to an eligible student to enable the eligible student to obtain an eligible professional degree or training certificate. [L 2018, c 43, §2]
Haw. Rev. Stat. § 251-9 — HI Code / Division 1 / Title 14 / Chapter 251 / Section 251-9
Overpayment; refunds.
Status: in_force

Upon application by a person, if the director determines that any surcharge tax, interest, or penalty has been paid more than once, or has been erroneously or illegally collected or computed, the surcharge tax, interest, or penalty shall be credited by the director on any surcharge taxes then due from the person under this chapter. The director shall refund the balance to the person or the person's successors, administrators, executors, or assigns in accordance with section 231-23(d). No credit or refund shall be allowed for any surcharge tax imposed by this chapter, unless a claim for the credit or refund is filed as follows:

(1) If an annual return is timely filed, or is filed within three years after the date prescribed for filing the annual return, then the credit or refund shall be claimed within three years after the date the annual return was filed or the date prescribed for filing the annual return, whichever is later.

(2) If an annual return is not filed, or is filed more than three years after the date prescribed for filing the annual return, a claim for credit or refund shall be filed within:

(A) Three years after the payment of the tax; or

(B) Three years after the date prescribed for the filing of the annual return,

whichever is later.

Paragraphs (1) and (2) are mutually exclusive. The preceding limitation shall not apply to a credit or refund pursuant to an appeal, provided for in section 251-10.

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. [L 1991, c 263, pt of §1; am L 1994, c 19, §5]
Haw. Rev. Stat. § 255D-3 — HI Code / Division 1 / Title 14 / Chapter 255D / Section 255D-3
Authority to participate in multistate negotiations.
Status: in_force

For the purposes of reviewing or amending the agreement embodying the simplification requirements in section 255D-6, the State may enter into multistate discussions. For purposes of these discussions, the State shall be represented by the department.
Haw. Rev. Stat. § 237-4.5 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-4.5
Marketplace facilitators.
Status: in_force

(a) A marketplace facilitator shall be deemed the seller of tangible personal property, intangible property, or services and the seller on whose behalf the sale is made shall be deemed to be making a sale at wholesale pursuant to section 237-4.

(b) For purposes of section 237-3, a marketplace facilitator's gross income or gross proceeds of sale include receipts from sales on behalf of other sellers under subsection (a).

(c) Any person other than a marketplace facilitator who provides a forum, whether physical or electronic, in which sellers list or advertise tangible personal property, intangible property, or services for sale and takes or processes sales orders shall:

(1) Post a conspicuous notice on its forum that informs purchasers intending to purchase tangible personal property, intangible property, or services for delivery to or use at a location in this State that the purchaser is required to pay use tax if the sale is made from an unlicensed seller;

(2) Provide a written notice to each purchaser at the time of each sale of tangible personal property, intangible property, or services for delivery to or use at a location in this State that the purchaser may be required to remit use tax directly to the department and provide instructions for obtaining additional information from the department on whether and how to remit use tax to the department; and

(3) No later than the twentieth day of the fourth month following the close of the taxable year, submit a report to the department that includes, with respect to each purchaser of tangible personal property, intangible property, or services delivered to or used at a location in this State, all of the following:

(A) The purchaser's name, billing address, and mailing address;

(B) If the sale involved the purchase of tangible personal property, the address in this State to which the tangible personal property was delivered to the purchaser;

(C) The aggregate dollar amount of the purchaser's purchases from the seller; and

(D) The name and address of the seller that made the sale to the purchaser;

provided that the person, in lieu of complying with the notice and reporting requirements in this subsection, may elect to be deemed the seller of tangible personal property, intangible property, or services as provided in subsection (a).

(d) Any person who fails to comply with subsection (c) and has not elected to be deemed the seller of tangible personal property, intangible property, or services unless it is shown that the failure is due to reasonable cause and not due to neglect, shall be assessed a penalty of $1,000 if the failure is for not more than one month, with an additional $1,000 for each additional month or fraction thereof during which the failure continues, not exceeding $12,000 in the aggregate. [L 2019, c 2, §1]
Haw. Rev. Stat. § 232-5 — HI Code / Division 1 / Title 14 / Chapter 232 / Section 232-5
Small claims.
Status: in_force

(a) The tax appeal court shall establish by rule a small claims procedure that, to the greatest extent practicable, shall be informal; provided that:

(1) No pretrial discovery shall be allowed without the prior written approval of the court; and

(2) Costs and fees awarded to the prevailing party shall be limited to fees paid directly to the court in the course of conducting the tax appeal at issue.

(b) Any protesting taxpayer who would incur a total tax liability, not including penalties and interest, of less than $1,000, by reason of the protested assessment or payment in question, may elect to employ the procedure established by this section upon:

(1) Payment per taxpayer of a nonrefundable filing fee set pursuant to rules adopted by the supreme court, which shall not exceed $25; and

(2) Filing with the tax appeal court a written statement of the facts in the case, together with a waiver of the right to further appeal.

The tax appeal court shall cause a notice of the appeal and a copy of the statement to be served on the director of taxation in the case of an appeal involving the department of taxation, or on the real property assessment division of the county involved in the case of an appeal involving the county, or upon both the director of taxation and the real property assessment division of the county involved in the case of an appeal involving both the department of taxation and the county. [L 1967, c 231, §6; HRS §232-5; am L 1997, c 152, §1; am L 2004, c 202, §19; am L 2006, c 94, §1; am L 2010, c 109, §1; am L 2011, c 167, §1; am L 2025, c 49, §1]
Haw. Rev. Stat. § 235-19 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-19
Exceptional trees; tax deduction.
Status: in_force

(a) Subject to subsection (b), there shall be allowed as a deduction from gross income the amount, not to exceed $3,000 per exceptional tree, for amounts paid, excluding interest paid or accrued thereon, during the taxable year by an individual taxpayer for expenditures to maintain, on the taxpayer's real property, each exceptional tree that has been designated by the county arborist advisory committee under chapter 58 as an exceptional tree.

(b) No deduction shall be allowed to exceed the amount of expenditures deemed reasonably necessary by a certified arborist. No deduction shall be allowed in more than one taxable year out of every three consecutive taxable years.

(c) The director of taxation shall prepare such forms as may be necessary to claim a tax deduction under this section, may require proof of the claim for the tax deduction, including an affidavit signed by the certified arborist, and may adopt rules pursuant to chapter 91.

(d) For the purpose of this section, the term "exceptional tree" shall have the same meaning as defined in section 58-3. [L 2004, c 195, §2]
Haw. Rev. Stat. § 243-7 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-7
Tax not applicable, when.
Status: in_force

(a) This chapter requiring the payment of license fees shall not be held or construed to apply to fuel imported into the State in interstate or foreign commerce while and so long as such fuel is beyond the taxing power of the State, nor to any such fuel exported or sold to the government of the United States or any department thereof for official use of the government, nor to any fuel exported or sold to another licensed distributor; but every distributor shall be required to report such imports, exports, and sales as provided by this chapter and in such detail as the department of taxation shall require.

(b) This chapter shall not apply to the sale of liquid fuel sold or used in the State for ultimate use by an intra-county ferry service that serves a county with a population of less than five hundred thousand residents and that includes at least three islands inhabited by permanent residents. [L 1932 1st, c 19, §10; RL 1935, §2019; am L Sp 1941, c 26, pt of §1; RL 1945, §5405; am L 1951, c 136, §2; RL 1955, §123-4; am L Sp 1959 2d, c 1, §16; HRS §243-7; am L 2008, c 57, §3]
Haw. Rev. Stat. § 235-18 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-18
Deposit beverage container deposit exemption.
Status: in_force

This chapter shall not apply to amounts received as a deposit beverage container deposit collected under part VIII of chapter 342G.
Haw. Rev. Stat. § 245-59 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-59
Unfair trade practices.
Status: in_force

Any violation of this part shall constitute an unfair method of competition and unfair and deceptive acts or practices in the conduct of any trade of commerce under section 480-2 and shall be subject to a civil penalty as provided in section 480-3.1. Each package of cigarettes sold in violation of this part shall constitute a separate violation.
Haw. Rev. Stat. § 235-55.7 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-55.7
Income tax credit for low-income household renters.
Status: in_force

(a) As used in this section:

(1) "Adjusted gross income" is defined by section 235-1.

(2) "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability.

(3) "Rent" means the amount paid in cash in any taxable year for the occupancy of a dwelling place which is used by a resident taxpayer or the resident taxpayer's immediate family as the principal residence in this State. Rent is limited to the amount paid for the occupancy of the dwelling place only, and is exclusive of charges for utilities, parking stalls, storage of goods, yard services, furniture, furnishings, and the like. Rent shall not include any rental claimed as a deduction from gross income or adjusted gross income for income tax purposes, any ground rental paid for use of land only, and any rent allowance or subsidies received.

(b) Each resident taxpayer who occupies and pays rent for real property within the State as the resident taxpayer's residence or the residence of the resident taxpayer's immediate family which is not partially or wholly exempted from real property tax, who is not eligible to be claimed as a dependent for federal or state income taxes by another, and who files an individual net income tax return for a taxable year, may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax.

(c) Each taxpayer with an adjusted gross income of less than $30,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of $50 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided each taxpayer sixty-five years of age or over may claim double the tax credit; and provided that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section.

(d) If a rental unit is occupied by two or more individuals, and more than one individual is able to qualify as a claimant, the claim for credit shall be based upon a pro rata share of the rent paid.

(e) The tax credits shall be deductible from the taxpayer's individual net income tax for the tax year in which the credits are properly claimed; provided that a husband and wife filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credits to which they would have been entitled had a joint return been filed. In the event the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided that allowed tax credits properly claimed by an individual who has no income tax liability shall be paid to the individual; and provided further that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts less than $1.

(f) The director of taxation shall prepare and prescribe the appropriate form or forms to be used herein, may require proof of the claim for tax credits, and may adopt rules pursuant to chapter 91.

(g) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credits hereunder.

(h) Claims for tax credits under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed. [L Sp 1977 1st, c 15, §1; am L 1981, c 230, §1; gen ch 1985; am L 1989, c 321, §5; am L 1990, c 98, §1]

Revision Note

In subsection (g), "231-23(c)(1)" substituted for "231-23(d)(1)" pursuant to §23G-15.
Haw. Rev. Stat. § 243-11 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-11
Failure to make and file statements and making false statement unlawful.
Status: in_force

It shall be unlawful for any distributor, or any other person, to fail, neglect, or refuse to make and file any statement required by this chapter in the manner or within the time therein provided or to make any such statement which is false in any particular.
Haw. Rev. Stat. § 231-69 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-69
Tax deed as evidence.
Status: in_force

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 the sale was subject to a lien or liens for state taxes, penalties, and interest in the amount stated in the deed, for the tax years therein stated, and that the state taxes, penalties, and interest were due and unpaid on the date of sale;

(2) Costs, expenses, and charges due or incurred on account of the state taxes, liens, and sale had accrued at the date of the sale in the amount stated in the deed;

(3) The person who executed the deed was the proper officer;

(4) At a proper time and place the property was sold at public auction as prescribed by law, and by the proper officer;

(5) The sale was made upon full compliance with sections 231-63 to 231-68 and all laws relating thereto, and after giving notice as required by law; and

(6) The grantee named in the deed was the person entitled to receive the conveyance. [L 1989, c 14, pt of §1(1)]
Haw. Rev. Stat. § 249-9.4 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-9.4
Special series number plates.
Status: in_force

A qualified household member, as defined in section 291E-1, or a co-owner of a motor vehicle owned by a respondent under part III of chapter 291E, who has been granted a special motor vehicle registration under section 291E-48, shall apply to the appropriate county director of finance for special number plates that shall bear a special series of numbers or letter so as to be readily identifiable by law enforcement officers and readily distinguishable from number plates or special number plates issued under sections 249-9.1, 249-9.2, and 249-9.3. The director of finance may issue the special series number plates only if:

(1) The director of finance receives written approval for the issuance of special series number plates from the administrative director of the courts, or the administrative director's appointee pursuant to section 291E-1;

(2) The qualified household member or a co-owner of the motor vehicle has a license that has not expired or been suspended or revoked; and

(3) The applicant pays a fee for the special series number plates that is equal to the costs of the plates and tag or emblem, plus the administrative costs of furnishing the plates and tag or emblem and effecting the registration for each motor vehicle for which special series number plates are issued. [L 2000, c 189, §4; am L 2001, c 157, §4]
Haw. Rev. Stat. § 235-63 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-63
Statements to employees.
Status: in_force

(a) Every employer required to deduct and withhold any tax on the wages of any employee shall furnish to each employee in respect of the employee's employment during the calendar year, on or before January 31 of the succeeding year, or if the employee's employment is terminated before the close of a calendar year, within thirty days after the date of receipt of a written request from the employee if the thirty-day period ends before January 31, a written statement, showing the period covered by the statement, the wages paid by the employer to the employee during the period covered by the statement, and the amount of the tax deducted and withheld or paid in respect of those wages. Each employer required to furnish a statement under this section shall file on or before January 31 following the close of the calendar year a duplicate copy of each statement. The department of taxation may grant to any employer a reasonable extension of time, not in excess of sixty days, with respect to any statement required by this section to be furnished to an employee or filed, and may by regulation provide for the furnishing or filing of statements at other times and containing other information as may be required for the administration of this chapter. The department shall prescribe the form of the statement required by this section and may adopt any federal form appropriate for the purpose.

(b) In regard to the statement required under subsection (a), an employer that:

(1) Wilfully fails to furnish the statement to the employee by the prescribed due date;

(2) Fails to file the statement with the department by the prescribed due date; or

(3) Fails to electronically file the statement with the department if the employer is required to file electronically under section 231-8.5;

shall be subject to a penalty of $25 per failure; provided that the penalty imposed under this section shall not exceed $50 per employee. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-18; HRS §235-63; am L 1980, c 236, §1; am L 1983, c 88, §3; gen ch 1985; am L 2021, c 115, §1]
Haw. Rev. Stat. § 235-119 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-119
Taxes, state realizations.
Status: in_force

All income taxes shall be for the use of the State and shall be paid into the state treasury at such times as the director of finance shall direct. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; Supp, §121-52; HRS §235-119]
Haw. Rev. Stat. § 238-13 — HI Code / Division 1 / Title 14 / Chapter 238 / Section 238-13
Other provisions of general excise tax law applicable.
Status: in_force

In respect of:

(1) The examination of books and records and of taxpayers and other persons;

(2) Procedure and powers upon failure or refusal by a taxpayer to make a return or a proper return; and

(3) The general administration of this chapter,

the director of taxation shall have all the rights and powers conferred upon the director by the general excise tax law with respect to taxes thereby or thereunder imposed; and, without restriction upon these rights and powers, sections 237-8, 237-30, 237-34, and 237-36 to 237-41 are hereby made applicable to and with respect to the taxes and the taxpayers, tax officers, and other persons, and the matters and things affected or covered by this chapter, insofar as not inconsistent with this chapter, in the same manner, as nearly as may be, as in similar cases covered by the general excise tax law. [L 1965, c 155, pt of §2; Supp, §119-13; HRS §238-13; gen ch 1985; am L 2000, c 34, §2; am L 2017, c 12, §52]
Haw. Rev. Stat. § 231-18 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-18
Tax and other officials permitted to inspect returns; reciprocal provisions.
Status: in_force

Notwithstanding the provisions of any law making it unlawful for any person, officer, or employee of the State to make known information imparted by any tax return or permit any tax return to be seen or examined by any person, it shall be lawful to:

(1) Permit a duly accredited tax official of the United States, any state or territory, any county of this State, or the Multistate Tax Commission to inspect any tax return of any taxpayer;

(2) Furnish to an official, commission, or the authorized representative thereof an abstract of the return or supply the official, commission, or the authorized representative thereof with information concerning any item contained in the return or disclosed by the report of any investigation of the return or of the subject matter of the return for tax purposes only; or

(3) Provide tax return information to the auditor pursuant to section 23-5(a).

The Multistate Tax Commission may make the information available to a duly accredited tax official of the United States, any state or territory, or the authorized representative thereof, for tax purposes only. [L 1937, c 109, §1; RL 1945, §5124; RL 1955, §115-23; HRS §231-18; am L 1974, c 139, §1; gen ch 1985; am L Sp 2005, c 9, §3; am L 2014, c 136, §3]
Haw. Rev. Stat. § 249-13 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-13
Determination of rate.
Status: in_force

(a) The council shall determine the rate and the minimum tax at which all vehicles and motor vehicles in each respective county shall be taxed as provided by section 249-2. In making the determination, the rate and minimum tax on trucks or noncommercial motor vehicles shall be in accordance with subsection (b). The rate and minimum tax shall be established by ordinance, provided that prior to final action thereon a public hearing shall be held on the proposed rate. Public notice of the time and place of the hearing shall be given at least ten days prior to the hearing in the county. After the public hearing the council may fix the rate and the minimum tax at any amount deemed necessary, but the rate and the minimum shall not be higher than that originally proposed when the notice of public hearing was given. Any rate and minimum tax so established shall be effective as of January 1 of the year following the date of enactment of the ordinance.

(b) The rate and minimum tax for a truck or noncommercial motor vehicle shall be the same as provided for a passenger vehicle if:

(1) The truck or noncommercial motor vehicle has a net weight of six thousand five hundred pounds or less; and

(2) The owner submits proof to the director of finance that the truck or noncommercial motor vehicle is not being operated for compensation or commercial purposes.

(c) Any person who submits proof under subsection (b) to the director of finance knowing that it is false shall be guilty of a petty misdemeanor. [L 1966, c 49, §4; HRS §249-13; am L 1978, c 69, §1; am L 1998, c 2, §72]
Haw. Rev. Stat. § 237-17 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-17
Persons with impaired sight, hearing, or who are totally disabled.
Status: in_force

Anything in section 237-13 to the contrary notwithstanding, the privilege tax levied, assessed, and collected on account of the business or other activities of individuals who are blind, deaf, or totally disabled, corporations all of whose outstanding shares are owned by individuals who are blind, deaf, or totally disabled, general, limited, or limited liability partnerships, all of whose partners are blind, deaf, or totally disabled, or limited liability companies, all of whose members are blind, deaf, or totally disabled, shall not exceed one-half of one per cent of the proceeds, sales, income, or other receipts subject to tax. For the purpose of this chapter "blind", "deaf", or "totally disabled" is defined as in section 235-1. The impairment of sight or hearing, or the disability, shall be certified to as provided in section 235-1.
Haw. Rev. Stat. § 245-23 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-23
Department to furnish stamps; designs, specifications, and denominations.
Status: in_force

The department shall furnish stamps for sale to licensees. Stamps shall be of such designs, specifications, and denominations as may be prescribed by the department.
Haw. Rev. Stat. § 237-49 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-49
Unfair competition; penalty.
Status: in_force

No taxpayer shall advertise or hold out to the public in any manner, directly or indirectly, that the tax hereby imposed upon the taxpayer is not considered as an element in the price to the purchaser. Any person violating this section shall be fined no more than $1,000 for each offense.
Haw. Rev. Stat. § 231-95 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-95
Failure to keep adequate books and records.
Status: in_force

It shall be unlawful for any person required under title 14 to keep books or records to fail to produce the books or records upon demand by the special enforcement section, or as soon thereafter as is reasonable under the circumstances. Any person who violates this section shall be subject to a fine not to exceed $1,000; provided that if the person is a cash-based business, the fine shall not exceed $2,000.
Haw. Rev. Stat. § 236E-12 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-12
Department to issue release; final settlement of account.
Status: in_force

(a) The department shall issue an automatic release of estate tax liability to the personal representative when:

(1) No estate tax is imposed by this chapter and upon the receipt of a request for a release, if the release includes the sworn statement of the personal representative or agent that in fact no taxes are due; or

(2) The estate taxes due under this chapter have been paid as prescribed in section 236E-9, and the request for a release includes the sworn statement of the personal representative that in fact all taxes due have been paid.

(b) The obtaining of a release shall confer upon the personal representative sufficient authority to effectuate the transfer of all property composing the decedent's estate. [L 2012, c 220, pt of §1]
Haw. Rev. Stat. § 235-129 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-129
Tax credits.
Status: in_force

(a) For purposes of section 235‑55, each resident shareholder shall be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to a state that does not measure the income of S corporation shareholders by the income of the S corporation. For purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income.

(b) Each shareholder of an S corporation shall be allowed a credit against the tax imposed by section 235-51 in an amount equal to the shareholder's pro rata share of the tax credit earned by the S corporation in this State. [L 1990, c 16, pt of §1; am L 1992, c 105, §1; am L 2007, c 151, §2]
Haw. Rev. Stat. § 244D-13 — HI Code / Division 1 / Title 14 / Chapter 244D / Section 244D-13
Other provisions applicable.
Status: in_force

All of the provisions of chapters 235 and 237 not inconsistent with this chapter and which may appropriately be applied to the taxes, persons, circumstances, and situations involved in this chapter, including (without prejudice to the generality of the foregoing) provisions as to penalties and interest, and provisions granting administrative powers to the director of taxation, and provisions for the assessment, levy, and collection of taxes, shall be applicable to the taxes imposed by this chapter, and to the assessment, levy, and collection thereof, except that returns, return information, or reports under this chapter and relating only to this chapter may be made known to the liquor commission by the department of taxation, if not in conflict with section 231-18. [L Sp 1984 1st, c 1, pt of §2; am L 1986, c 344, §9]
Haw. Rev. Stat. § 241-4.5 — HI Code / Division 1 / Title 14 / Chapter 241 / Section 241-4.5
Capital goods excise tax credit.
Status: in_force

The capital goods excise tax credit provided under section 235-110.7 shall be operative for this chapter after December 31, 1987; provided that the capital goods excise tax credit shall be inoperative after December 31, 2008, and before January 1, 2010.
Haw. Rev. Stat. § 243-16 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-16
Rules and regulations.
Status: in_force

Subject to chapter 91, the director of taxation shall have power to make rules and regulations relating to matters of procedure in the administration of this chapter and the manner and forms of records to be kept by distributors, and to prescribe standard forms of statements to be filed by distributors or other persons, affidavits, and any other statements or other written data required to be filed or furnished under this chapter. The rules and regulations shall have the force and effect of law.
Haw. Rev. Stat. § 237-14 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-14
Segregation of gross income, etc.
Status: in_force

§237-14 Segregation of gross income, etc., on records and in returns. The imposition of taxes and the application of tax rates do not depend upon the business in which the taxpayer is primarily engaged. One business may be subject to two or more tax rates. If a business is within the purview of two or more of the paragraphs of section 237-13 or other provisions of this chapter all of them apply, each provision being applicable to the appropriate item of gross income, gross proceeds of sales, or value of products. However, any person engaging or continuing in a business having gross income, gross proceeds of sales, and value of products, or any of these as the case may be, taxable at different rates, shall be subject to taxation upon the aggregate amount of the gross income, gross proceeds of sales, and value of products of the business at the highest rate applicable to any part of the aggregate, unless the person shall segregate the parts taxable at different rates upon the person's records and in the person's returns, and shall sustain the burden of proving that the segregation was correctly made.