Haw. Rev. Stat. § 231-30 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-30
Unknown or nonresident delinquents; procedure to collect taxes from.
Status: in_force

Notwithstanding section 604-7(c):

(1) Unknown persons. In all cases where taxes assessed to persons unknown are delinquent and unpaid when due, action may be brought by the department of taxation in the district court of the circuit in which the assessment was made and the defendant may be named as unknown. In any such case, it shall be a good and sufficient service of summons, binding on all parties in interest, if under the order of the district court the title and the substance of the action and summons, including a return day not less than three weeks from the date of the issuance of such summons, and calling on all parties in interest to appear and defend, shall be published once a week for three consecutive weeks in some newspaper of general circulation in the State, and the district courts are given jurisdiction to order the service. In the summons and in the notice published, a brief description of the property assessed shall be given. Any judgment entered against the defendant shall be enforced only against the property for which the tax was assessed, unless the defendant has appeared in the action and defended on the merits, in which case the defendant shall be liable to a personal judgment with respect to the claim so defended.

(2) Nonresident delinquents. Where taxes assessed to nonresidents of the taxation district are delinquent and unpaid when due, service of summons may be made in any part of the State, or by exercise by the district court of the powers conferred on circuit courts with respect to defendants who cannot be served with process within the State, with the same effect as if the action had been brought in the circuit court. [L 1932 2d, c 40, §70; RL 1935, §1964; RL 1945, §5132; RL 1955, §115-35; am L Sp 1959 2d, c 1, §16; am L 1967, c 37, §1; HRS §231-30; am L 1973, c 133, §2; gen ch 1985]
Haw. Rev. Stat. § 237-27 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-27
Exemption of certain petroleum refiners.
Status: in_force

(a) As used in this section:

"Petroleum products" means petroleum; any distillate, fraction, or derivative of petroleum; natural gas or its components; gas manufactured from a petroleum product; and any product derived from the gas or from the manufacture thereof, such as benzene, xylene, toluene, acetylene, tars, components of tars, and ammonia.

"Refiner" means any person who, in the State, engages in the business of refining petroleum products and is taxable under this chapter, upon the value or gross proceeds of sales of the petroleum products resultant from the business. A person who is engaged in business as a refiner and also in other business shall be deemed a refiner only in respect of the business that produces the products included in the measure of the tax imposed by this chapter.

"Refining" means:

(1) Any process performed by a refiner that includes a change in the character or properties of a petroleum product through the application of heat; or

(2) The compounding by a refiner of a petroleum product with a product that has been refined by the refiner by the process stated in paragraph (1).

(b) There shall be excluded from the measure of the tax on a refiner such part of the petroleum products resultant from the refiner's business as is to be further refined by another refiner, to the extent that the petroleum products resultant from such further refining will be (or but for this subsection would be) included in the measure of the tax on such other refiner, and where petroleum products are to be used partly for such refining and partly for other purposes, the proportion used for each purpose shall be determined upon the basis of weight or BTU content. [L 1953, c 274, §3; RL 1955, §117-22; HRS §237-27; gen ch 1985; am L 2018, c 18, §11]
Haw. Rev. Stat. § 244D-15 — HI Code / Division 1 / Title 14 / Chapter 244D / Section 244D-15
Administration by director; rules and regulations.
Status: in_force

The administration of this chapter is vested in the director of taxation who may prescribe and enforce rules and regulations for the enforcement and administration of this chapter.

The rules and regulations shall be prescribed by the director, subject to chapter 91. [L Sp 1984 1st, c 1, pt of §2]
Haw. Rev. Stat. § 245-32 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-32
Tax refund or credit for cigarettes and tobacco products shipped for sale or use outside the State.
Status: in_force

(a) The department shall adopt rules to provide a tobacco tax refund or credit to a licensee who has paid a tobacco tax on the distribution of cigarettes or tobacco products that are shipped to a point outside the State for subsequent sale or use outside the State.

(b) This part shall not apply to cigarettes or tobacco products that are distributed in this State to consumers and that are subsequently taken outside the State. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]
Haw. Rev. Stat. § 236E-3 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-3
Conformance to the Internal Revenue Code; general application.
Status: in_force

For all decedents dying, or transfers occurring, after December 31, 2024, as used in this chapter, "Internal Revenue Code" means subtitle B of the federal Internal Revenue Code of 1986, as amended as of December 31, 2024, as it applies to the determination of gross estate, adjusted gross estate, federal taxable estate, and generation-skipping transfers, except those provisions of the Internal Revenue Code and federal public laws that, pursuant to this chapter, do not apply or are otherwise limited in application.
Haw. Rev. Stat. § 248-10 — HI Code / Division 1 / Title 14 / Chapter 248 / Section 248-10
State highway fund; disposition of certain income.
Status: in_force

The department of land and natural resources shall deposit to the credit of the state highway fund created by section 248-8, all income received from the rental or lease of real property which has been acquired for highway purposes and paid for out of the state highway fund. Moneys thus deposited are hereby appropriated and may be expended by the department of transportation in accordance with section 248-9.

The department of transportation shall reimburse the department of land and natural resources, from the state highway fund, for all expenditures involved in the collection of such rental income and of the management and maintenance of such property. Such reimbursements shall be deposited in the general fund.

Nothing in this section shall be construed to amend or restrict the funds to be expended under any other law appropriating or authorizing the expenditure of other moneys by the department of transportation. [L 1951, c 251, §1; am L 1953, c 132; RL 1955, §129-13; am L 1959, c 265, §16; am L Sp 1959 2d, c 1, §§21, 26; am L 1961, c 132, §2; HRS §248-10]
Haw. Rev. Stat. § 256-7 — HI Code / Division 1 / Title 14 / Chapter 256 / Section 256-7
Tax reporting.
Status: in_force

The director of finance or the program manager of the college savings program, or a designee, shall file a report annually, with the director of taxation, setting forth the names and identification numbers of account owners, designated beneficiaries, and distributees of college accounts, the amounts contributed to the accounts, the amounts distributed from the accounts, and the nature of the distributions as qualified withdrawals or as withdrawals other than qualified withdrawals, and any other information that the director of taxation may require regarding the taxation under this chapter of amounts contributed to or withdrawn from the accounts.
Haw. Rev. Stat. § 249-9.8 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-9.8
[ §249-9.
Status: in_force

[ §249-9.8] Special number plates for Duke Kahanamoku authorized. (a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of a motor vehicle, who is a resident of the State, upon completed application and payment of required fees, a special number plate for the registered owner's motor vehicle commemorating Duke Kahanamoku and his contributions to Hawaii; provided that the director of finance of the city and county of Honolulu shall not issue any special number plate pursuant to this section before receiving from the owner of the Duke Kahanamoku trademark, Malama Pono, Inc., written permission for the trademark to be used for the special number plate and for all proceeds to benefit the Outrigger Duke Kahanamoku Foundation.

(b) 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, the chiefs of police of the city and county of Honolulu and the counties of Kauai, Maui, and Hawaii, and the executive director of the Outrigger Duke Kahanamoku Foundation, shall establish a special number plate design that:

(1) Is similar in shape and size to the uniform state number plate prescribed by law;

(2) Complies with all other requirements in section 249-9(a);

(3) Contains words, images, or both, not to exceed four and a half inches in height by four inches in width, that indicate the special number plate is issued to recognize Duke Kahanamoku; and

(4) Does not obstruct the visibility of the number or letters or any other information that is required by law to be on a number plate and is readily identifiable and distinguishable under actual traffic conditions;

provided that the director of finance of the city and county of Honolulu may also establish additional special number plate designs in conformance with this subsection and subsection (c) that jointly or separately recognize Duke Kahanamoku.

(c) The special number plate design shall not:

(1) Infringe upon 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.

(d) Each special number plate shall be securely fastened to the motor vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be determined by the director of finance in consultation with the executive director of the Outrigger Duke Kahanamoku Foundation. The fundraising fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate.

(f) The director of finance may charge an additional fundraising fee, of the same or a different amount as the fundraising fee established pursuant to subsection (e), for the renewal of a special number plate. If an additional fundraising fee is implemented pursuant to this subsection, the director of finance shall not renew and instead shall revoke the special number plate of the registered owner of a motor vehicle who fails to pay the additional fundraising fee imposed by this subsection.

(g) The revenue generated by the fundraising fees, or a portion of the revenue generated by the fundraising fees as determined by the director of finance, shall be deposited in the name of the Outrigger Duke Kahanamoku Foundation in a separate county budget account. The director of finance shall determine the most efficient means of directing the net revenue generated by the fundraising fees to the Outrigger Duke Kahanamoku Foundation, as appropriate, to fund programs that promote water safety and swim education across the State while developing world class water athletes as a tribute to, and in the spirit of, Duke Kahanamoku.

(h) The director of finance may revoke all special number plates issued pursuant to this section if the total number of registered owners of motor vehicles who obtain the special number plates is less than one hundred fifty within three years of issuance of the first special number plate.

(i) Nothing in this section shall be construed to apply to any plates issued pursuant to section 249-9.2.

(j) For the purposes of this section, unless a different meaning appears from the context, "special number plate" means a license plate that commemorates Duke Kahanamoku. [L 2024, c 25, §2]
Haw. Rev. Stat. § 231-26 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-26
Extraterritorial enforcement of tax laws.
Status: in_force

(a) The courts of the State shall recognize and enforce the liability for taxes lawfully imposed by the laws of any state which extends a like comity, whether by statute or case law, in respect of the liability for taxes lawfully imposed by the laws of this State. Should a claim be made in the state courts for taxes by a state whose highest court has not yet passed upon the question of enforcing extraterritorial revenue laws, the courts of the State shall enforce such claims until such time as the highest court of that state prohibits the enforcement of extraterritorial revenue laws.

(b) Any and all authorized officials of a state entitled to enforce its tax claims within the state courts may bring action in the courts of this State for the collection of the taxes. The certificate of the secretary of state of such state, or of the nearest equivalent official, that such officials have the authority to collect the taxes sought to be collected by the action shall be conclusive proof of that authority.

(c) The attorney general may bring action in the name of the State, or authorize action to be brought in the name of the State, in the courts of any state to collect taxes legally due the State.

(d) The term "state" as used herein means any state, territory, or possession of the United States. The term "taxes" as herein employed shall include:

(1) Any and all tax assessments lawfully made, whether they be based upon a return or other disclosure of the taxpayer, upon the information and belief of the taxing authority, or otherwise;

(2) Any and all penalties lawfully imposed pursuant to a taxing statute; and

(3) Interest charges lawfully added to the tax liability which constitutes the subject of the action.

(e) In any case where a person owing delinquent taxes to the State has moved from the State to another state or country, is situated in another state or country, resides, or maintains a place of business in another state or country, the director, notwithstanding any other law to the contrary, by contract, may select and retain bonded collection agencies, licensed attorneys, accountants, and auditors or other persons to pursue and collect the claims of the State.

(f) At the option of the director, any contract entered into under this section may provide for compensation on:

(1) A fixed price basis;

(2) An hourly rate basis with or without a fixed cap; or

(3) A contingent fee arrangement to be specified in the contract; provided that this paragraph shall not apply to auditors and accountants.

All compensation shall be payable out of the taxes recovered for the State or from the debtor in accordance with the terms of, and up to the amounts authorized by the contract, unless otherwise determined by the director.

(g) Suits brought upon judgments shall be governed by the law relating thereto, and not by this section. [L 1949, c 311, §1(a); am L 1953, c 67, §1; RL 1955, §115-31; am L Sp 1959 2d, c 1, §16; HRS §231-26; gen ch 1985; am L 1997, c 253, §2; am L 1999, c 68, §2]
Haw. Rev. Stat. § 257-5 — HI Code / Division 1 / Title 14 / Chapter 257 / Section 257-5
Death.
Status: in_force

In the event of an account holder's death, the account may be transferred to the ownership of a contingent beneficiary. An account holder shall name contingent beneficiaries at the time the account is established and may change beneficiaries at any time. If the named beneficiary is deceased or otherwise cannot accept the transfer, the moneys shall be transferred to the individual development account match fund of the fiduciary organization.
Haw. Rev. Stat. § 256B-4 — HI Code / Division 1 / Title 14 / Chapter 256B / Section 256B-4
Management contract; terms.
Status: in_force

(a) A management contract shall include, at a minimum, terms requiring the financial organization to:

(1) Take any action required to keep the program in compliance with the requirements of this chapter and take any action not contrary to the management contract to qualify as a qualified ABLE program as defined in section 529A of the Internal Revenue Code of 1986, as amended;

(2) Keep accurate records of each account, keep each account segregated from other accounts and provide the director with the information necessary to prepare the statements required by section 256B-5;

(3) Compile and total information contained in statements required to be prepared under section 256B-5 and provide the compilations to the director;

(4) If there is more than one program manager, provide the director with the information necessary to determine compliance with section 256B-5;

(5) Provide the director with access to the books and records of the program manager to the extent needed to determine compliance with the contract, this chapter, and section 529A of the Internal Revenue Code of 1986, as amended;

(6) Hold all accounts for the benefit of the account owner or owners;

(7) Be audited at least annually by a firm of certified public accountants selected by the program manager and provide the results of the audit to the director;

(8) Provide the director with copies of all regulatory filings and reports made by the financial organization during the term of the management contract or while the financial organization is holding any accounts, other than confidential filings or reports that will not become part of the program. The program manager shall make available for review by the director the results of any periodic examination of the program manager by any state or federal banking, insurance, or securities commission, except to the extent that the report or reports may not be disclosed under law; and

(9) Ensure that any description of the program, whether in writing or through the use of any media, is consistent with a marketing plan developed pursuant to this chapter.

(b) The director of finance may:

(1) Enter into contracts as the director deems necessary and proper for the implementation of the program;

(2) Require that an audit be conducted of the operations and financial position of the program manager at any time if the director has any reason to be concerned about the financial position, the recordkeeping practices, or the status of accounts of the program manager; and

(3) Terminate or not renew a management agreement. If the director terminates or does not renew a management agreement, the director shall take custody of accounts held by the program manager and shall seek to promptly transfer the accounts to another financial organization that is selected as a program manager and into investment instruments as similar to the original instruments as possible.

(c) The department of budget and finance, department of human services, department of health, and executive office on aging are authorized to exchange data regarding eligible individuals to carry out the purposes of this chapter. [L 2015, c 206, pt of §2]
Haw. Rev. Stat. § 257-8 — HI Code / Division 1 / Title 14 / Chapter 257 / Section 257-8
Matches.
Status: in_force

(a) The State shall match an amount of up to $100,000 per calendar year for individual development accounts.

(b) Not more than a 2:1 match of state funds to account holder deposits shall be deposited into any individual development account in a given year. [L 1999, c 160, pt of §25]
Haw. Rev. Stat. § 243-4 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-4
License taxes.
Status: in_force

(a) Every distributor shall, in addition to any other taxes provided by law, pay a license tax to the department of taxation for each gallon of liquid fuel refined, manufactured, produced, or compounded by the distributor and sold or used by the distributor in the State or imported by the distributor, or acquired by the distributor from persons who are not licensed distributors, and sold or used by the distributor in the State. Any person who sells or uses any liquid fuel, knowing that the distributor from whom it was originally purchased has not paid and is not paying the tax thereon, shall pay such tax as would have applied to such sale or use by the distributor. The rates of tax imposed are as follows:

(1) For each gallon of diesel oil, 1 cent;

(2) For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 1 cent;

(3) For each gallon of naphtha sold for use in a power-generating facility, 2 cents;

(4) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, 16 cents state tax, and in addition thereto an amount, to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;

(5) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, 16 cents state tax, and in addition thereto an amount, to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

(6) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, 16 cents state tax, and in addition thereto an amount, to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

(7) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, 16 cents state tax, and in addition thereto an amount, to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

If it is shown to the satisfaction of the department, based upon proper records and from any other evidence as the department may require, that liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), is used for agricultural equipment that does not operate upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by this section in excess of 1 cent per gallon. The department shall adopt rules to administer such refunds.

(b) Every distributor of diesel oil, in addition to the tax required by subsection (a), shall pay a license tax to the department for each gallon of diesel oil sold or used by the distributor for operating a motor vehicle or motor vehicles upon public highways of the State. The rates of the additional tax imposed are as follows:

(1) For each gallon of diesel oil sold or used in the city and county of Honolulu, or sold in any other county for ultimate use in the city and county of Honolulu, 15 cents state tax, and in addition thereto an amount, to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;

(2) For each gallon of diesel oil sold or used in the county of Hawaii, or sold in any other county for ultimate use in the county of Hawaii, 15 cents state tax, and in addition thereto an amount, to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

(3) For each gallon of diesel oil sold or used in the county of Maui, or sold in any other county for ultimate use in the county of Maui, 15 cents state tax, and in addition thereto an amount, to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

(4) For each gallon of diesel oil sold or used in the county of Kauai, or sold in any other county for ultimate use in the county of Kauai, 15 cents state tax, and in addition thereto an amount, to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

If any user of diesel oil furnishes a certificate, in a form that the department shall prescribe, to the distributor or if the distributor who uses diesel oil signs the certificate, certifying that the diesel oil is for use in operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State, the tax as provided in paragraphs (1) to (4) shall not be applicable. If a certificate is not or cannot be furnished and the diesel oil is in fact for use for operating a motor vehicle or motor vehicles in areas other than upon public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by the foregoing paragraphs. The department shall adopt rules to administer the refunding of such taxes.

(c) The tax shall not be collected in respect to any benzol, benzene, toluol, xylol, or alternative fuel sold for use other than for operating internal combustion engines. With respect to these products, other than alternative fuels, the department, by rule, shall provide for the reporting and payment of the tax and for the keeping of records in such a manner as to collect, for each gallon of each product sold for use in internal combustion engines for the generation of power, or so used, the same tax or taxes as apply to each gallon of diesel oil. With respect to alternative fuels, the only tax collected shall be that provided in paragraphs (1), (2), and (3) of this subsection. This subsection shall not apply to aviation fuel sold for use in or used for airplanes.

(1) Every distributor of any alternative fuel for operation of an internal combustion engine shall pay a license tax to the department of one-quarter of 1 cent for each gallon of alternative fuel sold or used by the distributor;

(2) Every distributor, in addition to the tax required under paragraph (1) of this subsection, shall pay a license tax to the department for each gallon of alternative fuel sold or used by the distributor for operating a motor vehicle or motor vehicles upon the public highways of the State at a rate proportional to that of the rates applicable to diesel oil in subsection (b), rounded to the nearest one-tenth of a cent, as follows:

(A) Ethanol, 0.145 times the rate for diesel;

(B) Methanol, 0.11 times the rate for diesel;

(C) Biodiesel, 0.25 times the rate for diesel;

(D) Liquefied petroleum gas, 0.33 times the rate for diesel; and

(E) For other alternative fuels, the rate shall be based on the energy content of the fuels as compared to diesel fuel, using a lower heating value of one hundred thirty thousand British thermal units per gallon as a standard for diesel, so that the tax rate, on an energy content basis, is equal to one-quarter the rate for diesel fuel.

The taxes so paid shall be paid into the state treasury and deposited in special funds or paid over in the same manner as provided in subsection (b) in respect of the tax on diesel oil;

(3) If any user of alternative fuel furnishes to the distributor a certificate, in a form that the department shall prescribe or if the distributor who uses alternative fuel signs the certificate, certifying that the alternative fuel is for use in operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State, the tax as provided by paragraphs (1) and (2) of this subsection shall not be applicable; provided that no certificate shall be required if the alternative fuel is used for fuel and heating purposes in the home. If a certificate is not or cannot be furnished and the alternative fuel is in fact used for operating an internal combustion engine or operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by the foregoing paragraphs. The department shall adopt rules to administer the refunding of these taxes.

(d) No tax shall be collected in respect to any liquid fuel, including diesel oil and liquefied petroleum gas, shown to the satisfaction of the department to have been sold for use in and actually delivered to, or sold in, the county of Kalawao. [L 1932 1st, c 19, §4; am L 1933, c 133, §2; am L 1937, c 189, §1; am L 1939, c 254, §1; am L Sp 1941, c 26, pt of §1; RL 1945, §5404; am L 1947, c 196, §2; am L 1949, c 360, §4; am L 1951, c 187, §2 and c 302, §1; am L 1953, cc 20, 197, 198, and 213, §1; am L 1955, cc 147, 148, 181, §1, and c 250, §2; RL 1955, §123-3; am L 1957, c 217, §2; am L Sp 1959 2d, c 1, §16; am L 1962, c 23, §1; HRS §243-4; am L 1969, c 215, §1; am L 1970, c 69, §1 and c 180, §18; am L 1971, c 51, §§1, 2; am L 1977, c 195, §2; am L 1985, c 239, §4; gen ch 1985; am L 1986, c 54, §1; am L 1991, c 263, §11; am L 2001, c 143, §3; am L 2004, c 96, §2; am L 2005, c 22, §5; am L 2007, c 103, §§3, 5(1) and c 209, §3; am L 2009, c 198, §§2, 3; am L 2012, c 188, §1; am L 2016, c 76, §2]
Haw. Rev. Stat. § 248-3 — HI Code / Division 1 / Title 14 / Chapter 248 / Section 248-3
State requirements.
Status: in_force

(a) On or before January 31 of each calendar year the state director of finance shall compute and submit to the council of each county the amounts which are payable to or retainable by the State for that county for the calendar year to meet interest charges for serial bonds, and the principal for all serial bonds maturing the following calendar year, which bonds have been issued by the State for county purposes (except bonds issued prior to January 1, 1945 for highway purposes).

(b) The board of trustees of the [employees'] retirement system of the State, on or before January 31 of each calendar year, shall submit to each county the amount estimated to be due from such county for the calendar year, pursuant to chapter 88, on account of the employees thereof who are members of the [employees'] retirement system.

(c) Any other information or estimates as to requirements for the calendar year, necessary to be given by any state office to any council in order that such requirements may be included in determining the tax rate for the county, shall be submitted by such officer to the council not later than January 31 of such year. [L Sp 1957, c 1, §15(a)(3); am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; Supp, §129-5.1; HRS §248-3]
Haw. Rev. Stat. § 251-4 — HI Code / Division 1 / Title 14 / Chapter 251 / Section 251-4
Return and payments; penalties.
Status: in_force

(a) On or before the twentieth day of each calendar month, every person taxable under this chapter during the preceding calendar month shall file a sworn return with the director in such form as the director shall prescribe together with a remittance for the amount of the surcharge tax in the form required by section 251-5. Sections 237-30 and 237-32 shall apply to returns and penalties made under this chapter to the same extent as if the sections were set forth specifically in this section.

(b) Notwithstanding subsection (a), the director, for good cause, may permit a person to file the person's return required under this section and make payments thereon:

(1) On a quarterly basis during the calendar or fiscal year, the return and payment to be made on or before the twentieth day of the calendar month after the close of each quarter, to wit: for calendar year taxpayers, on or before April 20, July 20, October 20, and January 20 or, for fiscal year taxpayers, on or before the twentieth day of the fourth month, seventh month, and tenth month following the beginning of the fiscal year and on or before the twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the surcharge taxes due thereon and that the person's total surcharge tax liability for the calendar or fiscal year under this chapter will not exceed $4,000; or

(2) On a semiannual basis during the calendar or fiscal year, the return and payment to be made by or before the twentieth day of the calendar month after the close of each six-month period, to wit: for calendar year taxpayers, on July 20 and January 20 or, for fiscal year taxpayers, on or before the twentieth day of the seventh month following the beginning of the fiscal year and on or before the twentieth day of the month following the close of the fiscal year; provided that the director is satisfied that the grant of the permit will not unduly jeopardize the collection of the surcharge taxes due thereon and that the person's total surcharge tax liability for the calendar or fiscal year under this chapter will not exceed $2,000.

The director, for good cause, may permit a person to make monthly payments based on the person's estimated quarterly or semiannual liability; provided that the person files a reconciliation return at the end of each quarter or at the end of each six-month period during the calendar or fiscal year, as provided in this section.

(c) If a person filing the return on a quarterly or semiannual basis, as provided in this section, becomes delinquent in either the filing of the return or the payment of the surcharge taxes due thereon, or if the liability of a person, who possesses a permit to file the return and to make payments on a semiannual basis exceeds $2,000 in surcharge taxes during the calendar year or exceeds $4,000 in surcharge taxes during the calendar year if making payments on a quarterly basis, or if the director determines that any such quarterly or semiannual filing of return would unduly jeopardize the proper administration of this chapter, including the assessment or collection of the surcharge tax, the director, at any time, may revoke a person's permit, in which case the person then shall be required to file the person's return and make payments thereon as provided in subsection (a).

(d) Section 232-2 does not apply to a monthly, quarterly, or semiannual return. [L 1991, c 263, pt of §1; am L 1993, c 39, §4; am L Sp 2001 3d, c 8, §5; am L 2010, c 22, §9]
Haw. Rev. Stat. § 231-63 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-63
Tax liens; foreclosure without suit, notice.
Status: in_force

All real property on which a lien for state taxes exists may be sold by way of foreclosure without suit by the state tax collector, and in case any lien, or any part thereof, has existed thereon for three years, shall be sold by the state tax collector at public auction to the highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and expenses due or incurred on account of the tax, lien, and sale, the surplus, if any, to be rendered to the person thereto entitled. The sale shall be held at any public place proper for sales on execution, after notice published at least once a week for at least four successive weeks immediately prior thereto in any newspaper with a general circulation of at least sixty thousand published in the State and any newspaper of general circulation published and distributed in the taxation district wherein the property to be sold is situated, if there is a newspaper published in the taxation district.

If the address of the owner is known or can be ascertained by due diligence, including an abstract of title or title search, the state tax collector shall send to each owner notice of the proposed sale by registered mail, with request for return receipt. If the address of the owner is unknown, the state tax collector shall send a notice to the owner at the owner's last known address as shown on the records of the department of taxation. The notice shall be deposited in the mail at least forty-five days prior to the date set for the sale. The notice shall also be posted for a like period in at least three conspicuous public places within such taxation district, and if the land is improved one of the three postings shall be on the land. [L 1989, c 14, pt of §1(1)]
Haw. Rev. Stat. § 231-3 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-3
Department, general duties and powers.
Status: in_force

The department of taxation shall have the following duties and powers, in addition to any others prescribed or granted by this chapter:

(1) Assessment: To make any assessment by law required to be made by the department;

(2) Collections: To be responsible for the collection of all taxes imposed under title 14, except those which by law are to be collected by county treasurers, and for such other duties as are provided by law;

(3) Construction of revenue laws: To construe the tax and revenue laws, the administration of which is within the scope of the department's duties, whenever requested by any officer acting under those laws, or by an interested person;

(4) Enforcement of penalties: To see that penalties are enforced when prescribed by any tax or revenue law of the State (the administration of which is within the scope of the department's duties) for disobedience or evading of its provisions, and to see that complaint is made against persons violating any such law; in the execution of these powers and duties the department may call upon the attorney general or any of the attorney general's deputies, including the county attorneys or public prosecutors, whose duties it shall be to assist in the institution and conduct of all proceedings or prosecutions for penalties and forfeitures, liabilities, and punishments for violation of the laws administered by the department;

(5) Forms: To prescribe forms to be used in or in connection with any assessment, including forms to be used in the making of returns by taxpayers or in any other proceedings connected with the assessment, and to change the same from time to time as deemed necessary;

(6) Inspection, examination of records: To inspect and examine the records of all public officers without charge, and to examine the books and papers of account of any person for the purpose of enabling the department to obtain all information that could in any manner aid the department in discharging its duties under any tax law;

(7) Recommendations for legislation: To recommend to the governor any amendments, changes, or modifications of the laws as may seem proper or necessary to remedy injustice or irregularity in taxation or to facilitate the assessment of taxes;

(8) Report to governor: To report to the governor annually, and at such other times and in such manner as the governor may require, concerning the acts and doings and the administration of the department, and any other matters of information concerning taxation as may be deemed of general interest;

(9) Rules: To adopt such rules as the department may deem proper effectually to carry out the purposes for which the department is constituted and to regulate matters of procedure by or before the department;

(10) Compromises: With the approval of the governor, to compromise any claim where the tax exceeds $50,000 (exclusive of penalties and interest) arising under any tax law the administration of which is within the scope of the department's duties, and to compromise any tax claim where the tax is $50,000 or less (exclusive of penalties and interest) without seeking the approval of the governor; provided that the director shall have the discretion to seek the approval of the governor to compromise any tax claim where the director deems it appropriate; and in each case the department shall post each proposed compromise, as set forth in subparagraphs (A) to (D), on the department's internet website for five calendar days before the director signs the compromise, and there shall be placed on file in the department's office a statement of:

(A) The name of the taxpayer and the amount and type of tax assessed, or proposed to be assessed;

(B) The amount of penalties and interest imposed or which could have been imposed by law with respect to the amount of tax assessed, as computed by the department;

(C) The total amount of liability as determined by the terms of the compromise, and the actual payments made thereon with the dates thereof; and

(D) The reasons for the compromise.

Notwithstanding the provisions of any law making unlawful the disclosure of tax returns or return information, statements on file and included in the department's internet website in respect of compromises shall be open to public inspection;

(11) Retroactivity of rulings: To prescribe the extent, if any, to which any ruling, rule, or construction of the tax laws, of general application, shall be applied without retroactive effect;

(12) Remission of delinquency penalties and interest: Except in cases of fraud or wilful violation of the laws or wilful refusal to make a return setting forth the information required by law (but inclusion in a return of a claim of nonliability for the tax shall not be deemed a refusal to make a return), the department may remit any amount of penalties or interest added, under any law administered by the department, to any tax that is delinquent, in a case of excusable failure to file a return or pay a tax within the time required by law, or in a case of uncollectibility of the whole amount due; and in that case there shall be placed on file in the department's office a statement showing the name of the person receiving the remission, the principal amount of the tax, and the year or period involved;

(13) Closing agreements: To enter into an agreement in writing with any taxpayer or other person relating to the liability of the taxpayer or other person, under any law the administration of which is within the scope of the department's duties, in respect of any taxable period, or in respect of one or more separate items affecting the liability for any taxable period; the agreement, signed by or on behalf of the taxpayer or other person concerned, and by or on behalf of the department, shall be final and conclusive, and except upon a showing of fraud or malfeasance, or misrepresentation of a material fact:

(A) The matters agreed upon shall not be reopened, and the agreement shall not be modified, by any officer or employee of the State; and

(B) In any suit, action, or proceeding, the agreement, or any determination, assessment, collection, payment, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded;

(14) Other powers and duties: In addition to the powers and duties contained in this chapter, the powers and duties contained in other chapters of the law under title 14 administered by the department for levying, assessing, collecting, receiving, and enforcing payments of the tax imposed thereunder, and otherwise relating thereto, shall be severally and respectively conferred, granted, practiced, and exercised for levying, assessing, collecting, receiving, and enforcing payment of the taxes imposed under the authority of those chapters as far as the provisions are consistent with the express provisions of those chapters, as fully and effectually to all intents and purposes as if the same powers and authorities were repeated in those chapters, with reference to those taxes, and all of the provisions shall be applied, construed, deemed, and taken to refer to the taxes imposed under the authority of those chapters, in like manner. [L 1932 2d, c 40, §§18, 20, 57, 58; RL 1935, §1907; RL 1945, §5104; am L 1945, c 79, §2 and c 196, §1; am L 1951, c 133, §1; am L 1953, c 125, §1 and c 223, §2; RL 1955, §115-4; am L Sp 1959 2d, c 1, §16; HRS §231-3; am L 1983, c 217, §3; am L 1985, c 16, §2; gen ch 1985; am L 1986, c 340, §2; am L 1989, c 14, §4(2); am L 1990, c 320, §2; am L 1991, c 263, §3; am L 1995, c 66, §2; am L 2003, c 136, §3]
Haw. Rev. Stat. § 244D-3 — HI Code / Division 1 / Title 14 / Chapter 244D / Section 244D-3
Cooperation between department and liquor commission.
Status: in_force

The department of taxation and the liquor commission, if the commission exercises its authority under this chapter, shall cooperate in the enforcement of this chapter.

The department shall notify the proper liquor commission of the name and address of every permittee whose permit has been revoked, and any license issued to the permittee under the liquor law thereupon shall be deemed forfeited.

The department may notify the proper liquor commission of the name and address of every person who has failed to file any return required, or to pay any tax prescribed, or to secure a permit, or to perform any other duty or act imposed under this chapter, and the proper liquor commission shall thereupon suspend any license that may have been issued to any person under the liquor law until the time the person complies with this chapter. [L Sp 1984 1st, c 1, pt of §2; am L 1986, c 344, §3; am L 2022, c 76, §1]
Haw. Rev. Stat. § 231-41 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-41
Statute of limitation for criminal penalties.
Status: in_force

Notwithstanding any laws to the contrary, prosecutions under sections 231-34, 231-35, 231-36, and 231-36.4 shall be commenced within seven years after the commission of the offense.
Haw. Rev. Stat. § 235-3 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-3
Legislative intent, how Internal Revenue Code shall apply, in general.
Status: in_force

(a) It is the intent of this chapter, in addition to the essential purpose of raising revenue, to conform the income tax law of the State as closely as may be with the Internal Revenue Code in order to simplify the filing of returns and minimize the taxpayer's burdens in complying with the income tax law. The rules and regulations, forms and procedures adopted and established under this chapter shall conform as nearly as possible, and unless there is good reason to the contrary, to the rules and regulations, forms and procedures adopted and established under the Internal Revenue Code.

(b) The Internal Revenue Code, so far as made operative by this chapter, is a statute adopted and incorporated by reference. The Internal Revenue Code shall be applied using changes in nomenclature and other language, including the omission of inapplicable language, where necessary to effectuate the intent of this section. In the Internal Revenue Code, references to terms such as:

(1) "Secretary or his delegate" shall refer to the director of taxation and the director's duly authorized subordinates;

(2) "Estate taxes" shall refer to the estate and transfer tax imposed by chapter 236D or the estate and generation-skipping [transfer] tax imposed by chapter 236E, as applicable;

(3) "The highest rate of tax imposed upon individuals" or "39.6 per cent" shall refer to the highest rate imposed upon individuals under section 235-51;

(4) "The highest rate of tax imposed upon corporations" shall refer to the highest rate imposed upon corporations under section 235-71; and

(5) "Interest at the underpayment rate" or "interest at the overpayment rate" shall refer to the interest rate set forth in section 231-39(b)(4) or section 231-23(d)(1), as the case may be.

(c) Where, under a provision of the Internal Revenue Code made operative in this chapter, the allowance or disallowance to a taxpayer of a deduction, exclusion, adjustment, credit, or exemption is dependent on whether, under the Internal Revenue Code or a prior applicable federal income tax law, the following was or was not, is or is not, in relation to the same taxpayer or another taxpayer, for the same taxable year or a prior taxable year, an operative factor: the imposition or payment of an income tax, an inclusion in gross income, an exclusion from gross income, or a deduction from gross income--the allowance or disallowance under this chapter of such deduction, exclusion, adjustment, credit, or exemption shall depend on the operativeness of such factor or factors under this chapter or a prior applicable income tax law of the State. This subsection shall govern the application of such sections of the Internal Revenue Code as, for example, sections 111, 215, 668(b), and 7852(c) and all matters of a similar nature.

(d) Whenever, in a taxable year of a corporation or its shareholders not governed by the income tax law of 1957, a distribution of money, stock, securities, or other property (whether in complete or partial liquidation or otherwise) has been made by a corporation to shareholders owning such shares in the State, or stock, securities, or other property has been transferred to a corporation, or corporate stock or securities exchanged, in the course of a corporate organization or reorganization effected under the laws of the State, in the application of the income tax law of 1957 effect shall be given to the recognition of income by the income tax laws of 1901 and 1932, if any, to the extent necessary to avoid double taxation, for example, in determining the earnings and profits of any corporation involved or the basis of any stock, securities, or other property so received, transferred, or exchanged. No increase in basis shall be allowed on account of such events in taxable years not governed by the income tax law of 1957, except as provided by this subsection. As used in this subsection the words "double taxation" mean and refer to double taxation of the same taxpayer, or taxation of both a corporation and its shareholders when the taxation of both would not have occurred had the income tax law of 1957 governed prior taxable years.

(e) In the determination of the basis or adjusted basis of any stock, securities, or other property:

(1) If the property was acquired by an exchange (including an involuntary conversion or the sale of an old residence and purchase of a new residence where both occur within a one-year period) the "cost" thereof to the taxpayer shall be deemed to include among other things, any income of the taxpayer recognized by the income tax laws of 1901 and 1932 as a result of the exchange;

(2) If the basis is dependent upon acquisition from a decedent, the property shall be deemed to have been acquired from a decedent if deemed so acquired for the purposes of chapter 236 prior to July 1, 1983, or after June 30, 1983, under this chapter but not otherwise, and the residence or nonresidence of the decedent, the location of the property, and chapter 236 for property acquired prior to July 1, 1983, or this chapter where the property has been acquired after June 30, 1983, shall be considered;

(3) If the basis is dependent upon deductions, exclusions, or exemptions taken or allowable, under the Internal Revenue Code or a prior applicable federal income tax law, in a prior year, it shall depend upon deductions, exclusions, or exemptions taken or allowable under the income tax law of the State governing such prior years;

(4) If the basis is dependent upon the election provided for by section 307, Internal Revenue Code, it shall be governed by the election actually made under the Internal Revenue Code for the taxable year, whether or not the taxable year was governed by the income tax law of 1957. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-2; HRS §235-3; am L 1979, c 62, pt of §2; am L 1983, c 217, §7(1), (2); gen ch 1985; am L 1996, c 187, §4; am L 2014, c 43, §1]
Haw. Rev. Stat. § 236E-15 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-15
Sale of property to pay tax; creation of lien.
Status: in_force

(a) Subject to chapter 560 and section 531-29, as applicable, a personal representative may sell any property necessary to pay the estate taxes due under this chapter. A personal representative may sell any property specifically bequeathed or devised as necessary to pay the proportionate amount of the taxes due on the transfer of the property and the fees and expenses of the sale, unless the legatee or devisee thereof pays the personal representative the proportionate amount of the taxes due.

(b) Unless any estate tax due is sooner paid in full, it shall be a lien upon the gross estate of the decedent for a period of ten years from the date of death, except that any part of the gross estate that is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof, shall be divested of the lien. Liens created under this subsection shall be qualified as follows:

(1) The limitation period, as described in this subsection, in each case shall be extended for a period of time equal to the period of pendency of litigation of questions affecting the determination of the amount of tax due; provided that a lis pendens has been filed with the bureau of conveyances or land court in the county in which the property is located;

(2) Any part of the gross estate that is transferred to a bona fide purchaser shall be divested of the lien and the lien shall be transferred to the proceeds arising out of the transfer; and

(3) A mortgage on property pursuant to an order of court for payment of charges against the estate and expenses of administration shall constitute a lien upon the property prior and superior to the tax lien. [L 2012, c 220, pt of §1]
Haw. Rev. Stat. § 237-37 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-37
Refunds and credits.
Status: in_force

If the amount already paid exceeds that which should have been paid on the basis of the tax recomputed as provided in section 237-36, the excess so paid shall be immediately refunded to the taxpayer in the manner provided in section 231-23(c). The taxpayer may, at the taxpayer's election, apply an overpayment credit to taxes subsequently accruing hereunder.

No recourse may be had except under section 40-35 or by appeal for refunds of taxes paid pursuant to an assessment by the director of taxation; provided that if the assessment by the director shall contain clerical errors, transposition of figures, typographical errors, and errors in calculation or if there shall be an illegal or erroneous assessment, the usual refunds procedures shall apply. 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 taxpayers generally. As to all tax payment 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. [L 1935, c 141, pt of §7; RL 1945, §5468; am L 1953, c 125, pt of §10; RL 1955, §117-32; am L 1957, c 34, §11(1) and c 152, §1; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §2; am L 1967, c 37, §1; HRS §237-37; gen ch 1985; am L 2021, c 117, §13]

Revision Note

Section "231-23(c)" substituted for "231-23(d)" pursuant to §23G-15.
Haw. Rev. Stat. § 231-10.7 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-10.7
Temporary rulemaking authority for regulation of tax matters.
Status: in_force

(a) Notwithstanding any other law in title 14, chapter 91, or chapter 201M to the contrary, the department is authorized to adopt any temporary rules as the department may deem proper as provided in this section. Temporary rules may include the adoption, amendment, or repeal of any rules concerning any matters which the department is authorized to regulate.

(b) Temporary rules shall take effect seven days after notice of the temporary rules is issued. Notice under this subsection shall require:

(1) Making the temporary rules available on the department's and the lieutenant governor's websites;

(2) Making copies of the temporary rules available to the public for inspection at the department's offices or copying if any required fee is paid; and

(3) Providing public notice of the substance of the temporary rules at least once statewide.

(c) Temporary rules shall be approved by the governor.

(d) Any temporary rules issued by the department shall also be issued as proposed administrative rules that shall be subject to the procedural requirements of chapter 91.

(e) Temporary rules shall expire eighteen months from the date the temporary rules take effect.

(f) Temporary rules shall conspicuously provide the following information at the beginning of the temporary rules' text:

(1) Notice stating the temporary nature of the rules;

(2) The expiration date of the temporary rules; and

(3) A statement advising that proposed administrative rules subject to chapter 91 are being simultaneously proposed for formal adoption.

(g) Temporary rules shall have the same force and effect as any other administrative rules. [L 2009, c 166, pt of §16]
Haw. Rev. Stat. § 235-36 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-36
Apportionment; sales factor; tangible personalty.
Status: in_force

Sales of tangible personal property are in this State if:

(1) The property is delivered or shipped to a purchaser, other than the United States government, within this State regardless of the f.o.b. point or other conditions of the sale; or

(2) The property is shipped from an office, store, warehouse, factory, or other place of storage in this State and the:

(A) Purchaser is the United States government; or

(B) Taxpayer is not taxable in the state of the purchaser. [L 1967, c 33, pt of §1; HRS §235-36; am L 2017, c 12, §42]
Haw. Rev. Stat. § 239-5.5 — HI Code / Division 1 / Title 14 / Chapter 239 / Section 239-5.5
Surcharge amounts exempt.
Status: in_force

Amounts received in the form of a monthly surcharge by a utility acting on behalf of an affected utility under section 269-16.3 shall not be gross income for the acting utility for purposes of this chapter. Any amounts retained by the acting utility for collection or other costs shall not be included in this exemption.
Haw. Rev. Stat. § 235-26 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-26
Allocation of capital gains and losses.
Status: in_force

(a) Capital gains and losses from sales of real property located in this State are allocable to this State.

(b) Capital gains and losses from sales of tangible personal property are allocable to this State if:

(1) The property had a situs in this State at the time of the sale; or

(2) The taxpayer's commercial domicile is in this State and the taxpayer is not taxable in the state in which the property had a situs.

(c) Except in the case of the sale of a partnership interest, capital gains and losses from sales of intangible personal property are allocable to this State if the taxpayer's commercial domicile is in this State.

(d) Gain or loss from the sale of a partnership interest is allocable to this State in the ratio of the original cost of partnership tangible property in the State to the original cost of partnership tangible property everywhere, determined at the time of the sale. If more than fifty per cent of the value of a partnership's assets consists of intangibles, gain or loss from the sale of the partnership interest shall be allocated to this State in accordance with the sales factor of the partnership for its first full tax period immediately preceding its tax period during which the partnership interest was sold. [L 1967, c 33, pt of §1; HRS §235-26; am L 1989, c 19, §1]
Haw. Rev. Stat. § 247-7 — HI Code / Division 1 / Title 14 / Chapter 247 / Section 247-7
Disposition of taxes.
Status: in_force

All taxes collected under this chapter shall be paid into the state treasury to the credit of the general fund of the State, to be used and expended for the purposes for which the general fund was created and exists by law; provided that of the taxes collected each fiscal year:

(1) Ten per cent or $5,100,000, whichever is less, shall be paid into the land conservation fund established pursuant to section 173A-5; and

(2) Fifty per cent or $38,000,000, whichever is less, shall be paid into the rental housing revolving fund established by section 201H-202. [L 1966, c 10, pt of §1; HRS §247-7; am L 1993, c 195, §5; am L 1997, c 350, §11; am L 1998, c 170, §§2, 6; am L 1999, c 133, §2; am L 2000, c 269, §§2, 3; am L 2001, c 268, §2; am L 2005, c 156, §8; am L 2006, c 100, §§21, 30; am L 2007, c 222, §§3, 4 and c 249, §§19, 52; am L 2009, c 59, §4; am L 2014, c 163, §2; am L 2015, c 43, §3, c 84, §3, and c 237, §26; am L 2020, c 9, §5]
Haw. Rev. Stat. § 231-19.3 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-19.3
Disclosure of letter rulings, et al.
Status: in_force

Notwithstanding any law to the contrary, any and all advice given or communications made by the department, including but not limited to letter rulings and determination letters, containing tax advice, shall be disclosed to the public under standards and procedures under section 6110 of the federal Internal Revenue Code of 1986, as amended, the regulations thereunder, and federal court interpretations.
Haw. Rev. Stat. § 233-3 — HI Code / Division 1 / Title 14 / Chapter 233 / Section 233-3
Selling personal property, defined.
Status: in_force

As used in this chapter "the business of selling tangible personal property" includes both business classed as such under chapter 237 and also the rendering of a service which involves the consumption or use of tangible personal property furnished by the "potential employer" referred to in section 233-1.
Haw. Rev. Stat. § 231-56 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-56
Charges for setoff; credit to agency.
Status: in_force

The State may charge the claimant agency for the cost of the setoff; provided that the charges shall not exceed the proceeds of the collection. The State may designate a single percentage to be retained from the proceeds of the setoff as a charge for cost of assistance. The net proceeds of a setoff, after deduction of any charge, shall be credited to the claimant agency's account or fund.
Haw. Rev. Stat. § 236E-20 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-20
Reimbursement.
Status: in_force

If a person who pays the Hawaii transfer tax arising from a taxable transfer is entitled under the Internal Revenue Code or any other state or federal statute or rule of law to reimbursement of a portion of the federal transfer tax from any other person who has received transferred property, then, unless the governing document directs otherwise, the person who paid the Hawaii transfer tax shall be entitled to reimbursement from that other person of a portion of the Hawaii transfer tax. The amount of reimbursement shall be determined by multiplying the total Hawaii transfer tax by a fraction, the numerator of which shall be the gross value of the transferred property received by that other person and having a tax situs in the State that gives rise to a right of reimbursement of the federal transfer tax, and the denominator of which shall be the gross value of all transferred property having a tax situs in the State.
Haw. Rev. Stat. § 235-7.5 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-7.5
Certain unearned income of minor children taxed as if parent's income.
Status: in_force

(a) In the case of any child to whom this section applies, the tax imposed by this chapter shall be equal to the greater of:

(1) The tax imposed by section 235-51 without regard to this section, or

(2) The sum of:

(A) The tax which would be imposed by section 235-51 if the taxable income of such child for the taxable year were reduced by the net unearned income of such child, plus

(B) Such child's share of allocable parental tax.

(b) This section shall apply to any child for any taxable year if:

(1) Such child has not attained age fourteen before the close of the taxable year, and

(2) Either parent of such child is alive at the close of the taxable year.

(c) For the purpose of this section:

(1) The term "allocable parental tax" means the excess of:

(A) The tax which would be imposed by section 235-51 on the parent's taxable income if such income included the net unearned income of all children of the parent to whom this section applies, over,

(B) The tax imposed by section 235-51 on the parent without regard to this section.

For purposes of subparagraph (A), net unearned income of all children of the parent shall not be taken into account in computing any exclusion, deduction, or credit of the parent.

(2) A child's share of any allocable parental tax of a parent shall be equal to an amount which bears the same ratio to the total allocable parental tax as the child's net unearned income bears to the aggregate net unearned income of all children of such parent to whom this section applies.

(3) Except as provided in rules, if the parent does not have the same taxable year as the child, the allocable parental tax shall be determined on the basis of the taxable year of the parent ending in the child's taxable year.

(d) For purposes of this section:

(1) The term "net unearned income" means the excess of:

(A) The portion of the adjusted gross income for the taxable year which is not attributable to earned income as defined in the Internal Revenue Code, over,

(B) The sum of:

(i) The amount in effect for the taxable year under section 63(c)(5)(A) (relating to the limitation on standard deduction in the case of certain dependents) of the Internal Revenue Code as operative under section 235-2.4(a), plus

(ii) The greater of the amount described in clause (i) or, if the child itemizes the child's deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in subparagraph (A).

(2) The amount of the net unearned income for any taxable year shall not exceed the individual's taxable income for such taxable year.

(e) For purposes of this section, the parent whose taxable income shall be taken into account shall be:

(1) In the case of parents who are not married (within the meaning of section 235-93), the custodial parent (within the meaning of section 152(e) (with respect to the support test in case of child of divorced parents, etc.) of the Internal Revenue Code) of the child, and

(2) In the case of married individuals filing separately, the individual with the greater taxable income.

(f) The parent of any child to whom this section applies for any taxable year shall provide the social security number of such parent to such child and such child shall include such parent's social security number on the child's return of tax imposed by this section for such taxable year.

(g) Election to claim certain unearned income of child on parent's return.

(1) If:

(A) Any child to whom this section applies has gross income for the taxable year only from interest and dividends (including Alaska Permanent Fund dividends),

(B) Such gross income is more than $500 and less than $5,000,

(C) No estimated tax payments for such year are made in the name and social security number of such child, and no amount has been deducted and withheld under section 3406 (with respect to backup withholding) of the Internal Revenue Code, and

(D) The parent of such child (as determined under subsection (e)) elects the application of paragraph (2),

such child shall be treated (other than for purposes of this paragraph) as having no gross income for such year and shall not be required to file a return under this chapter.

(2) In the case of a parent making the election under this subsection:

(A) The gross income of each child to whom such election applies (to the extent the gross income of such child exceeds $1,000) shall be included in such parent's gross income for the taxable year,

(B) The tax imposed by this section for such year with respect to such parent shall be the amount equal to the sum of:

(i) The amount determined under section 235-51 after the application of subparagraph (A), plus

(ii) For each such child, the lesser of $10 or two per cent of the excess of the gross income of such child over $500.

(3) The director shall prescribe such rules as may be necessary or appropriate to carry out the purposes of this subsection. [L 1987, c 239, §1(3); am L 1989, c 13, §4; am L 1990, c 15, §2; am L 1991, c 54, §2; am L 2001, c 199, §3]
Haw. Rev. Stat. § 249-9.7 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-9.7
Special number plates for environmental conservation; authorized.
Status: in_force

(a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of an electric vehicle, who is a resident of the State and has completed the application and paid the required fees, special number plates that commemorate the importance of environmental conservation, for the registered owner's motor vehicle. The special number plates shall be granted the same benefits and restrictions granted to any other electric vehicle special number plates.

(b) The director of finance of the city and county of Honolulu shall establish special number plate designs that commemorate the importance of environmental conservation. The design:

(1) Shall contain words or images, or both, that indicate that the special number plate is being issued to commemorate the importance of environmental conservation;

(2) Shall be similar in shape and size to the uniform state number plate prescribed by law;

(3) Shall be readily identifiable and distinguishable under actual traffic conditions; and

(4) May, but shall not be required to, bear the words "Aloha State" along the lower portion of the plate.

The director of finance of the city and county of Honolulu shall consult with the directors of finance of the counties of Kauai, Maui, and Hawaii; the chiefs of police of the city and county of Honolulu and the counties of Kauai, Maui, and Hawaii; and the chairperson of the board of land and natural resources in establishing the special number plate design, which shall be visually attractive and highlight Hawaii's environment, native species, or both.

(c) Each special number plate design shall not:

(1) Infringe upon 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;

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

(6) Obstruct the visibility of the number plate's numbers or letters or any other information that is required by law to be on a number plate.

(d) Each special number plate shall be securely fastened to the electric vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be set by the department of land and natural resources. The fundraising fee established by this subsection shall be in addition to any other state or county fees collected for a motor vehicle registration or license plates.

(f) The revenue generated by the fundraising fees established pursuant to subsection (e) shall be deposited into the conservation and resources enforcement special fund established under section 199-1.5.

(g) The director of finance may revoke all special number plates issued pursuant to this section if the total number of registered owners of electric vehicles that obtain the special number plates is less than one hundred fifty within three years of issuance of the first special number plate.

(h) Nothing in this section shall be construed to apply to any plates issued pursuant to section 249-9.2.

(i) For the purposes of this section:

"Electric vehicle" means a vehicle:

(1) Powered by an electric motor via electricity:

(A) Stored in a high capacity battery; or

(B) Generated from an onboard fuel cell; and

(2) That produces zero emissions.

"Special number plate" means a license plate that is not a uniform state number plate, unless a different meaning appears from the context. [L 2021, c 50, §2; am L 2024, c 64, §2; am L 2025, c 21, §5]
Haw. Rev. Stat. § 235-94 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-94
Returns by agent, guardian, etc.
Status: in_force

§235-94 Returns by agent, guardian, etc.; liability of fiduciaries. (a) Returns of decedents. If an individual is deceased, the return of the individual required under section 235-92 shall be made by the individual's personal representative or other person charged with the care of property of the decedent.

(b) Persons under a disability. If an individual is unable to make a return required under section 235-92 or 235-97, the return of the individual shall be made by a duly authorized agent, the individual's committee, guardian, fiduciary, or other person charged with the care of the person or property of the individual. The preceding sentence shall not apply in the case of a receiver appointed by authority of law in possession of only a part of the property of an individual.

(c) Receivers, trustees, and assignees for corporations. In a case where a receiver, trustee in bankruptcy, or assignee, by order of a court of competent jurisdiction, by operation of law, or otherwise, has possession of or holds title to all or substantially all the property or business of a corporation, whether or not the property or business is being operated, such receiver, trustee, or assignee shall make the return of income for the corporation in the same manner and form as corporations are required to make such returns.

(d) Returns of estates and trusts. Returns of an estate or a trust shall be made by the fiduciary thereof.

(e) Joint fiduciaries. Under such regulations as the department of taxation may prescribe, a return made by one of two or more joint fiduciaries shall be sufficient compliance with the requirement of this section. A return made pursuant to this subsection shall contain a statement that the fiduciary has sufficient knowledge of the affairs of the person for whom the return is made to enable the fiduciary to make the return, and the return is, to the best of the fiduciary's knowledge and belief, true and correct.

(f) Liability of fiduciaries. A tax imposed upon a fiduciary shall be a charge upon the property held by the fiduciary in that capacity. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-28; HRS §235-94; am L 1976, c 200, pt of §1; gen ch 1985]
Haw. Rev. Stat. § 235-12.5 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-12.5
Renewable energy technologies; income tax credit.
Status: in_force

(a) Each individual or corporate taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for every eligible renewable energy technology system that is installed and placed in service in the State by a taxpayer during the taxable year. The tax credit may be claimed as follows:

(1) For each solar energy system: thirty-five per cent of the actual cost or the cap amount determined in subsection (b); provided that:

(A) For taxable years beginning after December 31, 2019, and except as provided in subparagraphs (B) and (C), no tax credit may be claimed for a solar energy system that is five megawatts in total output capacity or larger and requires a power purchase agreement approved by the public utilities commission;

(B) A solar energy system that is five megawatts in total output capacity or larger, installed and placed in service pursuant to a power purchase agreement approved or pending approval by a decision and order by the public utilities commission prior to December 31, 2019, shall continue to receive a tax credit equal to thirty-five per cent of the actual cost, or $500,000 per solar energy system that has a total output capacity of at least one thousand kilowatts per system of direct current, whichever is less; and

(C) For each solar energy system integrated with a pumped hydroelectric energy storage system, the tax credit may be claimed for thirty-five per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; provided that applicable project approval filings have been made to the public utilities commission by December 31, 2021; or

(2) For each wind-powered energy system: twenty per cent of the actual cost or the cap amount determined in subsection (b), whichever is less;

provided further that multiple owners of a single system shall be entitled to a single tax credit; and provided further that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system.

In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service in the State 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 pursuant to administrative rule.

(b) The amount of credit allowed for each eligible renewable energy technology system shall not exceed the applicable cap amount, which is determined as follows:

(1) If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be:

(A) $2,250 per system for single-family residential property;

(B) $350 per unit per system for multi-family residential property; and

(C) $250,000 per system for commercial property;

(2) For all other solar energy systems, the cap amounts shall be:

(A) $5,000 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by thirty-five per cent of the actual system cost or $2,250, whichever is less;

(B) $350 per unit per system for multi-family residential property; and

(C) $500,000 per system for commercial property; and

(3) For all wind-powered energy systems, the cap amounts shall be:

(A) $1,500 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section 196-6.5(a)(3), the credit shall be reduced by twenty per cent of the actual system cost or $1,500, whichever is less;

(B) $200 per unit per system for multi-family residential property; and

(C) $500,000 per system for commercial property.

(c) For the purposes of this section:

"Actual cost" means costs related to the renewable energy technology systems under subsection (a), including accessories and installation, but not including the cost of consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system and costs for which another credit is claimed under this chapter.

"Household use" means any use to which heated water is commonly put in a residential setting, including commercial application of those uses.

"Renewable energy technology system" means a new system that captures and converts a renewable source of energy, such as solar or wind energy, into:

(1) A usable source of thermal or mechanical energy;

(2) Electricity; or

(3) Fuel.

"Solar or wind energy system" means any identifiable facility, equipment, apparatus, or the like that converts solar or wind energy to useful thermal or electrical energy for heating, cooling, or reducing the use of other types of energy that are dependent upon fossil fuel for their generation.

(d) For taxable years beginning after December 31, 2005, the dollar amount of any utility rebate shall be deducted from the cost of the qualifying system and its installation before applying the state tax credit.

(e) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section, including forms identifying the technology type of each tax credit claimed under this section, whether for solar or wind. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(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, unless otherwise elected by the taxpayer pursuant to subsection (g) or (h). 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 credit may be claimed. Failure to comply with this subsection shall constitute a waiver of the right to claim the credit.

(g) For solar energy systems, a taxpayer may elect to reduce the eligible credit amount by thirty per cent and if this reduced amount exceeds the amount of income tax payment due from the taxpayer, the excess of the credit amount over payments due shall be refunded to the taxpayer; provided that tax credit amounts properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

The election required by this subsection shall be made in a manner prescribed by the director on the taxpayer's return for the taxable year in which the system is installed and placed in service. A separate election may be made for each separate system that generates a credit. An election once made is irrevocable.

(h) Notwithstanding subsection (g), for any renewable energy technology system, an individual taxpayer may elect to have any excess of the credit over payments due refunded to the taxpayer, if:

(1) All of the taxpayer's income is exempt from taxation under section 235-7(a)(2) or (3); or

(2) The taxpayer's adjusted gross income is $20,000 or less (or $40,000 or less if filing a tax return as married filing jointly);

provided that tax credits properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

A husband and wife who do not file a joint tax return shall only be entitled to make this election to the extent that they would have been entitled to make the election had they filed a joint tax return.

The election required by this subsection shall be made in a manner prescribed by the director on the taxpayer's return for the taxable year in which the system is installed and placed in service. A separate election may be made for each separate system that generates a credit. An election once made is irrevocable.

(i) No taxpayer shall be allowed a credit under this section for the portion of the renewable energy technology system required by section 196-6.5 that is installed and placed in service on any newly constructed single-family residential property authorized by a building permit issued on or after January 1, 2010.

(j) To the extent feasible, using existing resources to assist the energy-efficiency policy review and evaluation, the department shall assist with data collection on the following for each taxable year:

(1) The number of renewable energy technology systems that have qualified for a tax credit during the calendar year by:

(A) Technology type; and

(B) Taxpayer type (corporate and individual); and

(2) The total cost of the tax credit to the State during the taxable year by:

(A) Technology type; and

(B) Taxpayer type.

(k) This section shall apply to eligible renewable energy technology systems that are installed and placed in service on or after July 1, 2009. [L 2003, c 207, §§2, 4; am L 2004, c 97, §1; am L 2006, c 240, §§2, 3; am L 2007, c 151, §1; am L 2008, c 204, §4; am L 2009, c 154, §1 superseding c 155, §15; am L 2020, c 61, §1; am L 2021, c 117, §6]
Haw. Rev. Stat. § 237D-13 — HI Code / Division 1 / Title 14 / Chapter 237D / Section 237D-13
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 return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for tax purposes only the taxpayer, the taxpayer'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, or of any county of this State;

(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 237D-6, or any of them, upon the expiration of three years after the end of the calendar or fiscal year in which the taxes so returned accrued. [L 1986, c 340, pt of §1; am L 1988, c 241, §12; am L 1997, c 178, §6; am L Sp 2005, c 9, §5; am L 2014, c 136, §6]
Haw. Rev. Stat. § 231-92 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-92
Cash-based businesses; injunction.
Status: in_force

The special enforcement section, with the director of taxation's approval, may bring civil actions in the circuit court where the cash-based business is located to enjoin any unlawful act under title 14, including any administrative rule adopted thereunder, by a cash-based business. To the extent provided by statute, the special enforcement section may include in any action an assessment of a monetary fine.
Haw. Rev. Stat. § 245-31 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-31
REPEALED.
Status: in_force

L 2021, c 116, §12 and c 117, §36.
Haw. Rev. Stat. § 235-8 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-8
REPEALED.
Status: in_force

L 1987, c 239, §1(9).
Haw. Rev. Stat. § 245-25 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-25
Purchase of stamps; when; by licensee or designee.
Status: in_force

(a) A licensee may apply to the department to purchase stamps beginning December 15, 2000.

(b) A licensee may authorize a designee to order purchases of stamps for the licensee at a location where stamps are sold. Authorization of a designee shall be in writing. The written authorization shall continue in effect until written notice of revocation of the authority is delivered at the sales location in the manner prescribed by rule. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]
Haw. Rev. Stat. § 235-59 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-59
Decedents.
Status: in_force

In respect of a decedent, the determination of the income of the taxable period in which falls the date of the decedent's death, and the determination of the income of the estate and of the persons who acquire rights from the decedent or by reason of the decedent's death, shall be governed by the Internal Revenue Code. [L Sp 1957, c 1, pt of §2; Supp, §121-14; HRS §235-59; gen ch 1985]
Haw. Rev. Stat. § 231-62 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-62
Tax liens; foreclosure; property.
Status: in_force

(a) Upon enforcement or foreclosure by the State, in any manner whatsoever, of any state tax lien on real property, all state taxes of whatsoever nature and howsoever accruing and due at the time of the foreclosure sale from the taxpayer against whose property the tax lien is so enforced or foreclosed shall be satisfied as far as possible out of the proceeds of the sale remaining after payment of the:

(1) Costs and expenses of the enforcement and foreclosure, including a title search, if any;

(2) Amount of subsisting state tax liens on real property; and

(3) Amount of any recorded liens against the property,

in the order of their priority.

(b) The liens may be enforced by action of the state tax collector in the circuit court of the judicial circuit in which the property is situated. Jurisdiction is conferred upon the circuit courts to hear and determine all proceedings brought or instituted to enforce and foreclose such state tax liens, and the proceedings had before the circuit courts shall be conducted in the same manner and form as ordinary foreclosure proceedings.

(c) If the owners or claimants of the property against which a state tax lien is sought to be foreclosed are at the time without the State or cannot be served within the State, or if the owners are unknown, and the fact shall be made to appear by affidavit to the satisfaction of the court, and it shall in like manner appear prima facie that a cause of action exists against such owners or claimants or against the property described in the complaint or that such owners or claimants are necessary or proper parties to the action, the court may grant an order that the service may be made in the manner provided by sections 634-23 to 634-27. In any such case it shall not be necessary to obtain judgment and have execution issued and returned unsatisfied, before proceeding to foreclose the lien for taxes in the manner provided. [L 1989, c 14, pt of §1(1); am L 2017, c 12, §36]
Haw. Rev. Stat. § 236D-2.3 — HI Code / Division 1 / Title 14 / Chapter 236D / Section 236D-2.3
Effect of civil union.
Status: in_force

[§236D-2.3]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. § 241-2 — HI Code / Division 1 / Title 14 / Chapter 241 / Section 241-2
Imposition of tax on national banking associations; construction; exemption from other taxes, except real property tax.
Status: in_force

(a) Every national banking association located or doing business in the State shall annually pay a franchise tax according to, or measured by, its net income, to be computed as provided in section 241-4, at the rate there prescribed. The State is hereby adhering to the prescriptions of section 5219, Revised Statutes of the United States, as amended (12 U.S.C. 548), or other similar law.

(b) Nothing in this chapter shall be construed to:

(1) Exclude the application of other taxes imposed by the State or any political division thereof on national banking associations or their activities, property, income, shares, or dividends when those taxes may be imposed in addition to those authorized by section 5219, Revised Statutes of the United States, as amended (12 U.S.C. 548), or other similar law;

(2) Exempt the real property of national banking associations from taxation to the same extent, according to its value, as other real property is taxed; or

(3) Preclude the inclusion of the dividends from national banking associations in the income of individuals taxable under chapter 235 to the same extent as are included dividends from domestic corporations.

(c) If the tax imposed by this chapter at the rate provided in section 241-4 is, for any year, higher than is authorized by law, then in such event the rate of the tax imposed by this chapter shall, for national banking associations only, be reduced for that year to such per cent (to be computed to the nearest hundredth of one per cent) as will cause the amount of the tax imposed on national banking associations under this chapter not to exceed the authorized amount. [L Sp 1957, c 1, pt of §10(a); Supp, §127-2; HRS §241-2; am L 1968, c 7, §3; am L 1992, c 106, §12; am L 2019, c 111, §7]
Haw. Rev. Stat. § 245-63 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-63
Penalties cumulative.
Status: in_force

The penalties provided in this part are in addition to any other penalties imposed under other law.
Haw. Rev. Stat. § 235-110.32 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-110.32
Renewable fuels production tax credit.
Status: in_force

(a) Each year during the credit period, there shall be allowed to each taxpayer subject to the taxes imposed by this chapter a renewable fuels production tax credit that shall be applied to the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

For each taxpayer producing renewable fuels, the annual dollar amount of the renewable fuels production tax credit during the ten-year credit period shall be equal to 20 cents per seventy-six thousand British thermal units of renewable fuels using the lower heating value sold for distribution in the State; provided that the taxpayer's production of renewable fuels is not less than two billion five hundred million British thermal units of renewable fuels per calendar year; provided further that the amount of the tax credit claimed under this section by a taxpayer shall not exceed $3,500,000 per taxable year; provided further that the tax credit shall only be claimed for fuels with lifecycle emissions below that of fossil fuels. No other tax credit may be claimed under this chapter for the costs incurred to produce the renewable fuels that are used to properly claim a tax credit under this section for the taxable year.

Each taxpayer, together with all of its related entities as determined under section 267(b) of the Internal Revenue Code and all business entities under common control, as determined under sections 414(b), 414(c), and 1563(a) of the Internal Revenue Code, shall not be eligible for more than a single ten-year credit period.

(b) In the case of a partnership, S corporation, estate, or trust, distribution and share of the renewable fuels production tax credit shall be determined pursuant to section 704(b) (with respect to a partner's distributive share) of the Internal Revenue Code of 1986, as amended. For a fiscal year taxpayer, the taxpayer shall report the credit in the taxable year in which the calendar year end is included.

(c) No later than thirty days following the close of the calendar year, every taxpayer claiming a credit under this section shall complete and file an independent, third-party certified statement, at the taxpayer's sole expense, with and in the form prescribed by the Hawaii state energy office, providing the following information:

(1) The type, quantity, and British thermal unit value, using the lower heating value, of each qualified fuel, broken down by the type of fuel, produced and sold during the previous calendar year;

(2) The feedstock used for each type of qualified fuel;

(3) The proposed total amount of credit to which the taxpayer is entitled for each calendar year and the cumulative amount of the tax credit the taxpayer received during the credit period;

(4) The number of full-time and number of part-time employees of the facility and those employees' states of residency, totaled per state;

(5) The number and location of all renewable fuel production facilities within and outside of the State; and

(6) The lifecycle greenhouse gas emissions per British thermal units for each type of qualified fuel produced.

(d) Within thirty calendar days after the due date of the statement required under subsection (c), the Hawaii state energy office shall:

(1) Acknowledge, in writing, receipt of the statement;

(2) Issue a certificate to the taxpayer reporting the amount of renewable fuels produced and sold, the amount of credit that the taxpayer is entitled to claim for the previous calendar year, and the cumulative amount of the tax credit during the credit period; and

(3) Provide the taxpayer with a determination of whether the lifecycle greenhouse gas emissions for each type of qualified fuel produced is lower than that of fossil fuels.

(e) The taxpayer shall file the certificate issued under subsection (d) with the taxpayer's tax return with the department of taxation. The director of taxation may audit and adjust the certification to conform to the facts.

(f) The total amount of tax credits allowed under this section shall not exceed $20,000,000 for all eligible taxpayers in any calendar year. In the event that the credit claims under this section exceed $20,000,000 for all eligible taxpayers in any given calendar year, the $20,000,000 shall be divided between all eligible taxpayers for that year in proportion to the total amount of renewable fuels produced by all eligible taxpayers. Upon reaching $20,000,000 in the aggregate, the Hawaii state energy office shall immediately discontinue issuing certificates and notify the department of taxation. In no instance shall the total dollar amount of certificates issued exceed $20,000,000 per calendar year.

(g) Notwithstanding any other law to the contrary, the information collected and compiled by the Hawaii state energy office under subsections (c) and (d) for the purposes of the renewable fuels production tax credit shall be available for public inspection and dissemination, subject to chapter 92F.

(h) If the credit under this section exceeds the taxpayer's net income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's net income tax liability in subsequent years until exhausted, unless otherwise elected by the taxpayer pursuant to subsections (i) or (j). All claims for a credit under this section shall be properly 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 or to provide the certified statement required under subsection (c) shall constitute a waiver of the right to claim the credit.

(i) A taxpayer may elect to reduce the eligible credit amount by thirty per cent and if this reduced amount exceeds the amount of income tax payment due from the taxpayer, the excess of the credit amount over payments due shall be refunded to the taxpayer; provided that tax credit amounts properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

The election required by this subsection shall be made in a manner prescribed by the director on the taxpayer's return for the taxable year in which the credit is claimed. An election once made is irrevocable.

(j) Notwithstanding subsection (i), an individual taxpayer may elect to have any excess of the credit over payments due refunded to the taxpayer, if:

(1) All of the taxpayer's income is exempt from taxation under section 235-7(a)(2) or (3); or

(2) The taxpayer's adjusted gross income is $20,000 or less (or $40,000 or less if filing a tax return as married filing jointly);

provided that tax credits properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

A married couple who does not file a joint tax return shall only be entitled to make this election to the extent that they would have been entitled to make the election had they filed a joint tax return.

The election required by this subsection shall be made in a manner prescribed by the director on the taxpayer's return for the taxable year in which the credit is claimed. An election once made is irrevocable.

(k) Before the production of any renewable fuels for the calendar year, the taxpayer shall provide written notice of the taxpayer's intention to begin production of renewable fuels. The written notice shall be provided to the department of taxation and the Hawaii state energy office and shall include information on the taxpayer, facility location, facility production capacity, anticipated production start date, and the taxpayer's contact information. Notwithstanding any other law to the contrary, the written notice described in this subsection, including taxpayer and facility information, shall be available for public inspection and dissemination, subject to chapter 92F.

(l) The taxpayer shall provide written notice to the director of taxation and the chief energy officer of the Hawaii state energy office within thirty days following the start of production. The notice shall include the production start date and expected renewable fuels production for the next twelve months. Notwithstanding any other law to the contrary, the written notice described in this subsection shall be available for public inspection and dissemination, subject to chapter 92F.

(m) Following each calendar year in which a credit under this section has been claimed, the chief energy officer of the Hawaii state energy office shall submit a written report to the governor and legislature regarding the production and sale of renewable fuels. The report shall include:

(1) The number and location of renewable fuels production facilities in the State and outside the State that have claimed a credit under this section;

(2) The total number of British thermal units of renewable fuels, itemized by type of fuel produced and sold during the previous calendar year; and

(3) The projected number of British thermal units of renewable fuels production for the succeeding year.

(n) 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.

(o) As used in this section:

"Credit period" means a maximum period of ten consecutive years, beginning from the first taxable year in which a taxpayer begins renewable fuels production at a level of at least two billion five-hundred million British thermal units of renewable fuels per calendar year.

"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

"Renewable feedstocks" means:

(1) Biomass crops and other renewable organic material, including but not limited to logs, wood chips, wood pellets, and wood bark;

(2) Agricultural residue;

(3) Oil crops, including but not limited to algae, canola, jatropha, palm, soybean, and sunflower;

(4) Sugar and starch crops, including but not limited to sugar cane and cassava;

(5) Other agricultural crops;

(6) Grease and waste cooking oil;

(7) Food wastes;

(8) Municipal solid wastes and industrial wastes;

(9) Water, including wastewater; and

(10) Animal residues and wastes,

that can be used to generate energy.

"Renewable fuels" means fuels produced from renewable feedstocks; provided that the fuel:

(1) Is sold as a fuel in the State; and

(2) Meets the relevant ASTM International specifications or other industry specifications for the particular fuel, including but not limited to:

(A) Methanol, ethanol, or other alcohols;

(B) Hydrogen;

(C) Biodiesel or renewable diesel;

(D) Biogas;

(E) Other biofuels;

(F) Renewable jet fuel or renewable gasoline; or

(G) Logs, wood chips, wood pellets, or wood bark. [L 2022, c 216, §2]
Haw. Rev. Stat. § 235-113 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-113
Time for assessment of deficiency attributable to gain upon sale of a residence.
Status: in_force

(a) If after December 31, 1957, a taxpayer during a taxable year sells at a gain property used by the taxpayer as the taxpayer's principal residence, the rules stated in this section apply.

(b) The statutory period for the assessment of any deficiency attributable to any part of the gain referred to in subsection (a) of this section shall not expire before the expiration of three years from the date the department of taxation is notified by the taxpayer (in such manner as the department has prescribed or may prescribe) of the matters set out in subsection (c) of this section, and such deficiency may be assessed at any time before the expiration of the three-year period notwithstanding any other provision which would otherwise prevent such assessment.

(c) The notice referred to in subsection (b) of this section shall inform the department of:

(1) The taxpayer's cost of purchasing the new residence which the taxpayer claims results in nonrecognition of any part of the gain referred to in subsection (a) of this section, or

(2) The taxpayer's intention not to purchase a new residence within the period specified in section 1034(a) of the Internal Revenue Code, or

(3) A failure to make such purchase within such period. [L 1959, c 277, pt of §14; am L Sp 1959 2d, c 1, §16; Supp, §121-45.2; HRS §235-113; gen ch 1985]
Haw. Rev. Stat. § 249-9.5 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-9.5
Special number plates for Haleakala National Park and Hawaii Volcanoes National Park authorized.
Status: in_force

(a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of a motor vehicle, who is a resident of the State, upon completed application and payment of required fees, a special number plate for the registered owner's motor vehicle commemorating Haleakala National Park or Hawaii Volcanoes National Park, or both, to observe the importance of the national parks in Hawaii.

(b) 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, the chiefs of police of the city and county of Honolulu, and the counties of Kauai, Maui, and Hawaii, and the superintendents of Haleakala National Park and Hawaii Volcanoes National Park, shall establish a special number plate design that:

(1) Contains words, images, or both, that indicate the special number plate is issued to recognize Haleakala National Park and Hawaii Volcanoes National Park; provided that the director of finance of the city and county of Honolulu may establish special number plate designs to jointly or separately recognize Haleakala National Park and Hawaii Volcanoes National Park;

(2) Is similar in shape and size to the uniform state number plate prescribed by law; and

(3) Does not obstruct the visibility of the number or letters or any other information that is required by law to be on a number plate and [is] readily identifiable and distinguishable under actual traffic conditions.

(c) The special number plate design 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.

(d) Each special number plate shall be securely fastened to the motor vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be determined by the director of finance in consultation with the superintendents of Haleakala National Park and Hawaii Volcanoes National Park. The fundraising fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate.

(f) The director of finance may charge an additional fundraising fee, of the same or a different amount as the fundraising fee established pursuant to subsection (e), for the renewal of a special number plate. If an additional fundraising fee is implemented pursuant to this subsection, the director of finance shall revoke the special number plate of the registered owner of a motor vehicle who fails to pay the additional fundraising fee imposed by this subsection.

(g) The revenue generated by the fundraising fees, or a portion of the revenue generated by the fundraising fees as determined by the director of finance, shall be deposited in the name of the Haleakala National Park and Hawaii Volcanoes National Park in a separate county budget account. The director of finance shall determine the most efficient means of directing the revenue generated by the fundraising fees to the respective national park, or its nonprofit partner organization, as appropriate.

(h) The director of finance may revoke all special number plates issued pursuant to this section if the total number of registered owners of motor vehicles that obtain the special number plates is less than one hundred fifty within three years of issuance of the first special number plate.

(i) Nothing in this section shall be construed to apply to any plates issued pursuant to sections 249-9.2 and 249-9.6.

(j) For the purposes of this section, unless a different meaning appears from the context, "special number plate" means a license plate that represents Haleakala National Park and Hawaii Volcanoes National Park. [L 2015, c 145, §1; am L 2021, c 11, §2]
Haw. Rev. Stat. § 235-60 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-60
REPEALED.
Status: in_force

L 1978, c 173, §2(12).
Haw. Rev. Stat. § 231-66 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-66
Tax liens; postponement of sale, etc.
Status: in_force

If at the time appointed for the sale the state tax collector deems it expedient and for the interest of all persons concerned therein to postpone the sale of any property or properties for want of purchasers, or for other sufficient cause, the state tax collector may postpone the sale from time to time, until the sale is completed, giving notice of every adjournment by a public declaration thereof at the time and place last appointed for the sale; provided that the sale of any property may be abandoned at the time first appointed or any adjourned date, if no proper bid is received sufficient to satisfy the lien, together with all interest, penalties, costs, expenses, and charges.
Haw. Rev. Stat. § 231-9.2 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-9.2
[ §231-9.
Status: in_force

[ §231-9.2] Offers in compromise. (a) Requests for compromises authorized under section 231-3 shall be submitted to the department and accompanied by the following:

(1) In the case of a lump-sum offer in compromise, twenty per cent of the amount of the offer; or

(2) In the case of a periodic payment offer in compromise, payment in the amount of the first proposed installment. Any failure to make an installment other than the first installment due under the offer in compromise, during the period the offer is being evaluated by the department, may be treated by the department as a withdrawal of the offer in compromise.

(b) Where an offer in compromise is not accepted by the department for any reason, payments made under subsection (a) shall be applied to the tax first assessed or other amounts imposed under title 14.

(c) The department may waive the payment requirements under subsection (a) for individual taxpayers who meet the low-income certification guidelines published by the Internal Revenue Service for the period in which the request for compromise has been submitted.

(d) The director of taxation shall prepare any forms that may be necessary to meet the requirements of this section. In addition to any other administrative requirements, the director of taxation may also require the taxpayer to furnish reasonable information to ascertain the validity of the request for payment waiver made under subsection (c).

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

(f) As used in this section:

"Lump-sum offer in compromise" means any offer of payments made in five or fewer installments.

"Periodic payment offer in compromise" means any offer of payments made in six or more installments. [L 2013, c 6, §1]
Haw. Rev. Stat. § 248-2.7 — HI Code / Division 1 / Title 14 / Chapter 248 / Section 248-2.7
Mass transit special fund; established; distribution of funds.
Status: in_force

(a) There is established a mass transit special fund to be administered by the department of budget and finance.

(b) For the period beginning on January 1, 2018, to December 31, 2030, transient accommodations tax and surcharge on state tax revenues allocated to the mass transit special fund pursuant to sections 237D-2(e) and 248-2.6 shall be deposited into the special fund. All interest earned on the moneys in the special fund shall be credited to the general fund. The mass transit special fund shall be exempt from the central service expenses deduction under section 36-27 and departmental administrative expenses deduction under section 36-30.

(c) Upon receiving a certification statement from the comptroller pursuant to section 40-81.5, the director of finance shall allocate and disburse moneys in the mass transit special fund to the director of finance of a county with a population greater than five hundred thousand; provided that the director of finance shall only disburse those amounts that are certified in the certification statement for that county for the purposes specified in section 46-16.8; provided further that revenues allocated from the special fund shall not be used for:

(1) Operating or maintenance costs of the mass transit project or any purpose not consistent with section 46-16.8(f); or

(2) Administrative, operating, marketing, or maintenance costs, including personnel costs, of a rapid transportation authority charged with the responsibility for constructing, operating, or maintaining the mass transit project;

provided further that the total amount of funds that are available, allocated, and disbursed by the director of finance pursuant to this section shall not be in excess of the total amount indicated on the certification statement. The director of finance may allocate and disburse moneys pursuant to this section on a monthly basis.

Any amounts allocated and disbursed pursuant to this section shall be subject to the availability of funds deposited and on balance in the special fund. The director of finance shall not allocate or disburse any amounts from the special fund that are in excess of any amounts deposited and on balance in the special fund.

(d) The director of finance shall post all certification statements received from the comptroller pursuant to section 40-81.5 on the department of budget and finance's website within ten working days of payments made pursuant to this section.

(e) The department of budget and finance shall submit an annual report to the legislature not later than twenty days prior to the convening of each regular session on the total amount of funds allocated pursuant to this section.

(f) The director of finance may establish rules, exempt from chapter 91, for the purposes of this section. [L Sp 2017, c 1, §8; am L 2023, c 48, §7]
Haw. Rev. Stat. § 243-17 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-17
[ § 243-17] Chapter 235 and chapter 237 applicable.
Status: in_force

[ § 243-17] Chapter 235 and chapter 237 applicable. All of the provisions of chapters 235 and 237 not inconsistent with this chapter and that 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.
Haw. Rev. Stat. § 235-4.5 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-4.5
Taxation of trusts, beneficiaries; credit.
Status: in_force

(a) There shall be excluded from gross income any intangible income, such as dividends and interest, earned by a trust sited in this State to the extent that, during the taxable year of the trust, the beneficial interest in the trust shall be held by a beneficiary or beneficiaries residing outside this State. This exclusion shall not apply to income received from real property held in a land trust formed under chapter 558.

(b) If a trust sited in this State owns one hundred per cent of the stock of a foreign corporation which does not engage in an active trade or business but acts solely as a holding company receiving intangible income, such as dividends and interest, the intangible income of the foreign corporation shall be excluded from gross income for Hawaii income tax purposes but only to the extent that the income of the trust beneficiaries is excluded from taxation under subsection (a). As used in this section, foreign corporation means a corporation not created or organized in the United States or under the laws of the United States, Hawaii, or any other state.

(c) Any resident beneficiary of a trust with a situs in another state may claim a credit for income taxes paid by the trust to the other state on any income received which is attributable to assets other than intangibles. [L 1985, c 283, §1; am L 1988, c 33, §1]
Haw. Rev. Stat. § 237-29.55 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-29.55
Exemption for sale of tangible personal property for resale at wholesale.
Status: in_force

(a) There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds or gross income arising from the sale of tangible personal property imported to Hawaii from a foreign or domestic source to a licensed taxpayer for subsequent resale for the purpose of wholesale as defined under section 237-4.

(b) The department, by rule, may provide that a seller may take from the purchaser of imported tangible personal property, a certificate, in a form that the department shall prescribe, certifying that the purchaser of the imported tangible personal property shall resell the imported tangible personal property at wholesale as defined under section 237-4. Any purchaser who furnishes a certificate shall be obligated to pay to the seller, upon demand, if the sale in fact is not a sale for the purpose of resale at wholesale, the amount of the additional tax which by reason thereof is imposed upon the seller. The absence of a certificate, unless the sales of the business are exclusively a sale for the purpose of resale at wholesale, in itself, shall give rise to the presumption that the sale is not a sale for the purpose of resale at wholesale. [L 1998, c 247, §1]
Haw. Rev. Stat. § 235-97 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-97
Estimates; tax payments; returns.
Status: in_force

§235-97 Estimates; tax payments; returns.

(a)(1) Individuals, corporations (including S corporations), estates, and trusts, shall annually furnish the department of taxation with a declaration of estimated tax for the current taxable year. Declarations of estimated tax, except as otherwise provided by rule, shall be governed by the provisions as to returns contained in sections 235-94, 235-98, 235-99, and 235-128. The declarations shall be made on estimated tax payment voucher forms. The payment voucher shall be filed, in the case of taxpayers on the calendar year basis, on or before April 20. In the case of a husband and wife who are entitled to submit a joint payment voucher for federal purposes, a single payment voucher may be submitted by them jointly, in which case the liability with respect to the estimated tax shall be joint and several; if a joint payment voucher is submitted but a joint income tax return is not made for the taxable year, the estimated tax for the year may be treated as the estimated tax of either the husband or the wife or may be divided between them.

(2) Each taxpayer shall transmit, with the payment voucher, payment of one-quarter of the estimated tax for the current taxable year. In determining this quarterly payment and all other installments, there first shall be deducted from the total estimated tax the amount of estimated tax withholding or collection at source for the taxable year. Thereafter, on the twentieth day of June and September, the taxpayer shall transmit with the payment voucher, payment of one-quarter of the estimated tax. The fourth quarter payment of the estimated tax shall be transmitted with the payment voucher by January 20 of the year following the taxable year for which the estimate was made.

(3) Taxpayers operating on a fiscal year basis shall make similar estimates and tax payments, on or before the twentieth day of the fourth month of the fiscal year and periodically thereafter so as to conform to the payments and returns required in the case of those on a calendar year basis.

(4) The department by rule may excuse individuals from filing an estimate in those cases where the gross income and exemptions are such that no tax is expected to accrue under this chapter, or are such that substantially all the tax will be collected through tax withholding or at the source.

(5) In the case of a foreign corporation, the department may excuse the filing of an estimate and the payment of estimated tax if it is satisfied that less than fifteen per cent of the corporation's business for the taxable year will be attributable to the State. For the purposes of this paragraph, fifteen per cent of a corporation's business shall be deemed attributable to the State if fifteen per cent or more of the entire gross income of the corporation (which for the purposes of this paragraph means gross income computed without regard to source in the State) is attributable to the State under sections 235-21 to 235-39 or other provisions of this chapter.

(6) In the case of a taxpayer whose tax liability is less than $500, the filing of an estimate and the payment of estimated tax shall not be required.

(b) Net income returns for the taxable year shall be filed with the department on or before the twentieth day of the fourth month following the close of the taxable year, and shall be accompanied by payment of the balance of the tax for the taxable year, or the entire tax for the taxable year, as the case may be. These returns shall be filed both by persons required to make declarations of estimated tax pursuant to this section and by persons not required to make declarations of estimated tax.

(c) At the election of the taxpayer, any installment of the estimated tax may be paid prior to the date prescribed for its payment.

(d) A person who, under the regulations of the department adopted pursuant to subsection (a)(4), is relieved of filing an estimate, shall if the regulations cease to apply by reason of a change of circumstances during the taxable year, file the required estimate on the first quarterly payment date prescribed for payment of estimated taxes, following such change of circumstances, and pay the estimated tax in equal installments computed by allocating the entire amount shown by the estimate for the current taxable year to the remaining quarterly payment dates.

(e) An amendment of an estimate may be filed, under regulations prescribed by the department. If an amendment is filed, the remaining installments, if any, shall be ratably increased or decreased to reflect the increase or decrease in the estimate. The amended estimate may be accompanied by payment of the amount of underpayment, if any, and if so this shall be considered in determining the period of the underpayment as provided in subsection (g).

(f) In the case of any underpayment of estimated tax, except as provided by this subsection, there shall be added to the tax for the taxable year an amount determined at the rate of two-thirds of one per cent a month or fraction of a month upon the amount of the underpayment for the period of the underpayment.

(1) The amount of the underpayment shall be the excess of:

(A) The required installment, over

(B) The amount, if any, of the installment paid on or before the due date for the installment.

(2) The period of the underpayment shall run from the due date for the installment to whichever of the following dates is the earlier:

(A) The twentieth day of the fourth month following the close of the taxable year, or

(B) With respect to any portion of the underpayment, the date on which the portion is paid. For purposes of this paragraph, a payment of estimated tax on any installment date shall be credited against unpaid required installments in the order in which the installments are required to be paid.

(3) For the purposes of this section, the term "tax" means the tax imposed under this chapter reduced by any credits available to the taxpayer other than the credit for amounts withheld from the taxpayer's wages or taxes withheld at the source, if any, or estimated tax payments or payments remitted with extension requests for the taxable year.

(4) Sections 6654(d), (e)(2), (e)(3), (h), (i), (j), (k), and (l), (with respect to failure by an individual to pay estimated income tax), and 6655(d), (e), (g)(2), (g)(3), (g)(4), and (i) (with respect to failure by a corporation to pay estimated income tax) of the Internal Revenue Code, as of the date set forth in section 235-2.3(a), shall be operative for the purposes of this section; provided that the due dates contained in any of the preceding Internal Revenue Code sections shall be deemed to be the twentieth day of the applicable month; and provided further that, for purposes of this chapter in applying section 6654(d), the required annual payment shall be the lesser of sixty per cent of the tax shown on the return for the taxable year (or, if no return is filed, sixty per cent of the tax for the taxable year) or one hundred per cent of the tax shown on the return of the individual for the preceding taxable year.

(g) The amounts of taxes withheld from wages or collected at source shall be deemed payments of estimated tax, and an equal part of any such amount shall be deemed paid on each installment date for the taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld or collected, in which case the amounts so withheld or collected shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld or collected. [L Sp 1957, c 1, pt of §2; am L 1959, c 277, §12; am L Sp 1959 2d, c 1, §16; Supp, §121-31; am L 1967, c 134, §4; HRS §235-97; am L 1979, c 62, §2(12); gen ch 1985; am L 1990, c 16, §3; am L 1991, c 20, §1; am L 1993, c 73, §§5, 6; am L 1995, c 67, §1; am L 1998, c 113, §4; am L 2002, c 190, §1; am L 2003, c 14, §1]

Revision Note

In subsection (d), "(a)(4)" substituted for "(a)(5)" pursuant to §23G-15.
Haw. Rev. Stat. § 243-2 — HI Code / Division 1 / Title 14 / Chapter 243 / Section 243-2
Distributors to register and be licensed.
Status: in_force

(a) Every distributor, and any person before becoming a distributor, shall register as such with the department of taxation on forms to be prescribed, prepared, and furnished by the department and the department shall issue to such distributor a license which shall be valid until revoked by the department as hereinafter provided.

(b) Any license issued under this chapter shall not be assignable and shall be conspicuously displayed on the licensed premises of the licensee. Whenever a license is defaced, destroyed, or lost, or the licensed premises are relocated, the department may issue a duplicate license to the licensee upon the payment of a fee of 50 cents.

(c) The department may suspend or revoke any license issued under this chapter whenever the department finds that the licensee has failed to comply with this chapter or any rule adopted under this chapter, or for any other good cause. Good cause includes but is not limited to instances where an applicant or licensee has:

(1) Submitted a false or fraudulent application or provided a false statement in an application;

(2) Possessed or displayed a false or fraudulent license;

(3) Failed to comply with, violated, or been convicted of violating any county, state, or federal law directly pertaining to the sale, importation, acquisition, possession, distribution, transportation, or smuggling of fuel, including petroleum products and alternative fuels; or

(4) Failed to maintain complete and accurate records when and if required to be kept.

Upon suspending or revoking any license, the department may request that the licensee surrender the license or any duplicate issued to or printed by the licensee, and the licensee shall surrender the license or duplicate promptly to the department as requested.

(d) When the department suspends or revokes a license, the department shall immediately notify the licensee and afford the licensee a hearing, if requested; provided that a hearing has not already been afforded. The department shall provide no less than thirty days' notice to the licensee of a hearing afforded under this subsection. After the hearing, the department shall:

(1) Rescind its order of suspension;

(2) Continue the suspension;

(3) Revoke the license; or

(4) Rescind its order of revocation. [L 1932 1st, c 19, §3; RL 1935, §2012; am L Sp 1941, c 26, pt of §1; RL 1945, §5403; RL 1955, §123-2; am L Sp 1959 2d, c 1, §16; HRS §243-2; am L 2021, c 116, §2]
Haw. Rev. Stat. § 237-41.5 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-41.5
Certain amounts held in trust; liability of key individuals.
Status: in_force

(a) There shall be personal liability for the taxes imposed under this chapter as provided in this section for the following amounts of gross income or gross proceeds:

(1) Any amount collected as a recovery of the taxpayer's liability under this chapter, where the amount is passed on as the tax owed by the taxpayer under this chapter for the transaction and is separately stated or accounted for in a receipt, contract, invoice, billing, or other evidence of the business activity; or

(2) An amount equal to the tax liability under this chapter on a transaction where a taxpayer does not separately state or account for the amount as a tax recovery as provided in paragraph (1). For purposes of this paragraph, the amount of the imputed tax liability is the result of multiplying the gross income or gross proceeds received in the transaction by the tax rate.

The amounts under paragraphs (1) and (2) shall be held in trust for the benefit of the State and for payment to the State in the manner and at the time required by this chapter.

(b) The personal liability under this section applies to any officer, member, manager, or other person having control or supervision over amounts of gross proceeds or gross income collected to pay the general excise tax and held in trust under subsection (a), or who is charged with the responsibility for the filing of returns or the payment of general excise tax on gross income or gross proceeds collected and held in trust under subsection (a). The person shall be personally liable for any unpaid taxes and interest and penalties on those taxes, if such officer or other person wilfully fails to pay or to cause to be paid any taxes due from the taxpayer pursuant to this chapter.

This subsection shall not apply to any officer, manager, or other person having control or supervision over amounts of gross proceeds or gross income collected to pay the general excise tax and held in trust under subsection (a), or who is charged with the responsibility for the filing of returns or the payment of general excise tax on gross income or gross proceeds collected and held in trust under subsection (a) for a nonprofit organization.

For purposes of this subsection:

"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).

"Wilfully fails to pay or to cause to be paid" shall be construed in accordance with judicial interpretations given to similar provisions of the Internal Revenue Code; consistent therewith, the term "wilfully" shall mean a voluntary, intentional violation of a known legal duty.

(c) An officer, member, manager, or other responsible person shall be liable only for general excise taxes on gross income or gross proceeds collected, plus interest and penalties on those taxes, that became due during the period the person had control, supervision, responsibility, or a duty to act for the taxpayer as described in subsection (b) of this section.

(d) Persons liable under subsection (b) are exempt from liability when nonpayment of the general excise tax on gross income or gross proceeds held in trust is for good cause as determined by the director.

(e) The voluntary or involuntary dissolution of the taxpayer or the withdrawal or surrender of its right to engage in business in this State shall not discharge the liability hereby imposed. [L 2010, c 155, pt of §2; am L 2012, c 219, §2; am L 2013, c 52, §2]
Haw. Rev. Stat. § 245-36 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-36
Counterfeiting stamps.
Status: in_force

A person shall be guilty of a class B felony if the person:

(1) Intentionally or knowingly makes, alters, or reuses a stamp as defined in section 245-1; or

(2) Knowingly possesses or distributes a stamp that has been falsely made, altered, or reused. [L 2000, c 249, pt of §1, §20(2); am L 2002, c 94, §3]
Haw. Rev. Stat. § 257-1 — HI Code / Division 1 / Title 14 / Chapter 257 / Section 257-1
Definitions.
Status: in_force

As used in this chapter:

"Eligible educational institution" means:

(1) An institution described in sections 481(a)(1) or 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)(1) or 1141(a)), as such sections are in effect on June 28, 1999; and

(2) An area vocational education school defined in subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471(4)), as such sections are in effect on June 28, 1999.

"Fiduciary organization" means an organization that serves as an intermediary between an individual account holder and the financial institution holding the individual's individual development account funds. Fiduciary organizations may include:

(1) One or more not-for-profit organizations described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of the Code; or

(2) State or local government agencies submitting an application jointly with another organization.

Nothing in this definition shall be construed as preventing an organization described in paragraph (2) from cooperating with a financial institution or for-profit community development corporation to carry out the purposes of this chapter.

The fiduciary organization's responsibilities may include:

(1) Marketing participation;

(2) Soliciting matching contributions;

(3) Counseling program participants; and

(4) Conducting required verification and compliance activities.

"Financial institution" means an organization authorized to do business pursuant to chapter 412, or under federal laws relating to financial institutions, and includes a bank, trust company, savings bank, building and loan association, savings and loan company or association, and credit union.

"Household" means adults related by blood, marriage, or adoption, or who are unrelated but have maintained a stable family relationship together over a period of time, and individuals under eighteen years of age related to the above adults by marriage, blood, or adoption, who are living together. Living together refers to domicile as evidence by the parties' intent to maintain a home for their family and does not include a temporary visit.

"Individual development account" means an optional, interest bearing, subsidized, tax-benefitted account used exclusively for the purpose of paying the qualified expenditure of an eligible individual as determined by the fiduciary organization.

"Post-secondary educational expenses" means:

(1) Tuition and fees required for the enrollment or attendance of a student at an eligible educational institution; and

(2) Fees, books, supplies, and equipment required for courses of instruction at an eligible educational institution.

"Qualified acquisition costs" means the costs of acquiring, constructing, or reconstructing a residence and shall include any usual or reasonable settlement, financing, or other closing costs.

"Qualified business" means any business that does not contravene any law or public policy.

"Qualified business capitalization expenses" means qualified expenditures for the capitalization of a qualified business pursuant to a qualified plan.

"Qualified expenditures" means an expense as determined by a fiduciary organization, which may include but not be limited to:

(1) Costs associated with first homeownership;

(2) Post-secondary education;

(3) Vocational training; and

(4) Small or micro-business capitalization.

"Qualified plan" means a business plan or a plan to use a business asset purchased, that:

(1) Is approved by a financial institution, a micro-enterprise development organization, or a nonprofit loan fund having demonstrated fiduciary integrity;

(2) Includes a description of services or goods to be sold, a marketing plan, and projected financial statements; and

(3) May require the eligible individual to obtain the assistance of an experienced entrepreneurial advisor.

"Qualified principal residence" means a principal residence (within the meaning of section 1034 of the Internal Revenue Code of 1986), the qualified acquisition costs of which do not exceed one hundred per cent of the average area purchase price applicable to such residence (determined in accordance with paragraphs (2) and (3) of section 143(e) of the Code). [ L 1999, c 160, pt of §25]

Revision Note

"June 28, 1999" substituted for "the date of the enactment of this chapter" pursuant to § 23G-15.
Haw. Rev. Stat. § 245-62 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-62
Applicability.
Status: in_force

(a) This chapter shall not apply to:

(1) Cigarettes allowed to be imported or brought into the United States for personal use free of federal tax or duty or voluntarily abandoned to the United States Secretary of Treasury at the time of entry;

(2) Cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise in accordance with the provisions of section 1555(b) of title 19, United States Code, and any implementing regulations; provided that this chapter shall apply to any cigarettes that are brought back into the customs territory for resale within the customs territory; or

(3) A delivery service when engaged in the business of transporting or delivering packages or other containers of cigarettes, if the delivery service is not a knowing accomplice in any act that circumvents the requirements of this chapter. The department and the attorney general shall retain inspection and investigation authority under this chapter. The delivery service shall provide the department or the attorney general with access to inspect any shipments of any cigarettes and shall provide any information, including shipping and delivery documents, deemed necessary to verify compliance with the requirements of this chapter.

(b) As used in this section:

"Delivery service" means an entity, including the United States Postal Service (as defined in section 102 of title 39, United States Code), that is engaged in the commercial transport or delivery by water, land, or air of letters, packages, merchandise, or other containers whether or not the entity actually operates the vessel, vehicle, or aircraft by which the transportation is provided.

"Shipping documents" or "delivery documents" include but are not limited to bills of lading, air bills, or any other documents, records, or documentation in whatever format, including electronic format used to evidence the undertaking by a delivery service to ship, transport, or deliver letters, packages, merchandise, or other containers. [L 2000, c 201, pt of §1; am L 2004, c 157, §6]
Haw. Rev. Stat. § 235-7.3 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-7.3
Royalties derived from patents, copyrights, or trade secrets excluded from gross income.
Status: in_force

(a) In addition to the exclusions in section 235-7, there shall be excluded from gross income, adjusted gross income, and taxable income, amounts received by an individual or a qualified high technology business as royalties and other income derived from any patents, copyrights, and trade secrets:

(1) Owned by the individual or qualified high technology business; and

(2) Developed and arising out of a qualified high technology business.

(b) With respect to performing arts products, this exclusion shall extend to:

(1) The authors of performing arts products, or any parts thereof, without regard to the application of the work-for-hire doctrine under United States copyright law;

(2) The authors of performing arts products, or any parts thereof, under the work-for-hire doctrine under United States copyright law; and

(3) The assignors, licensors, and licensees of any copyright rights in performing arts products, or any parts thereof.

(c) For the purposes of this section:

"Performing arts products" means:

(1) Audio files, video files, audiovideo files, computer animation, and other entertainment products perceived by or through the operation of a computer; and

(2) Commercial television and film products for sale or license, and reuse or residual fee payments from these products.

"Qualified high technology business" means a business that conducts more than fifty per cent of its activities in qualified research.

"Qualified research" means:

(1) The same as in section 41(d) of the Internal Revenue Code;

(2) The development and design of computer software for ultimate commercial sale, lease, license or to be otherwise marketed, for economic consideration. With respect to the software's development and design, the business shall have substantial control and retain substantial rights to the resulting intellectual property;

(3) Biotechnology;

(4) Performing arts products;

(5) Sensor and optic technologies;

(6) Ocean sciences;

(7) Astronomy; or

(8) Nonfossil fuel energy-related technology. [L 1999, c 178, §22; am L 2000, c 297, §6; am L 2001, c 221, §7; am L 2004, c 215, §6]
Haw. Rev. Stat. § 232-4 — HI Code / Division 1 / Title 14 / Chapter 232 / Section 232-4
Second appeal.
Status: in_force

In every case in which a taxpayer appeals a real property tax assessment to a tax appeal court and there is pending an appeal of the assessment, the taxpayer shall not be required to file a notice of the second appeal; provided the first appeal has not been decided prior to April 9 preceding the tax year of the second appeal; and provided further the assessor gives notice that the tax assessment has not been changed from the assessment which is the subject of the appeal.
Haw. Rev. Stat. § 236E-8 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-8
Tax imposed; credit for tax paid other state.
Status: in_force

(a) This section shall apply to a decedent who, at the time of death was:

(1) A resident of the State; or

(2) A nonresident of the State whose gross estate includes any real property situated in the State or tangible personal property having a situs in the State. Where the decedent is the sole owner of a single member limited liability company that has not elected to be taxed as a corporation, the single member limited liability company shall be disregarded for purposes of this chapter and this chapter shall be applied as if the sole member is the owner of the property.

(b) With respect to the estates of decedents dying after January 25, 2012, the tax based on the Hawaii net taxable estate shall be as provided in the following schedule:

If the Hawaii net taxable

estate is: The tax shall be:

$1,000,000 or less 10.0% of the Hawaii net

taxable estate

Over $1,000,000 but $100,000 plus 11.0% of the

not over $2,000,000 amount by which the Hawaii

net taxable estate

exceeds $1,000,000

Over $2,000,000 but $210,000 plus 12% of the

not over $3,000,000 amount by which the Hawaii

net taxable estate

exceeds $2,000,000

Over $3,000,000 but $330,000 plus 13% of the

not over $4,000,000 amount by which the Hawaii

net taxable estate

exceeds $3,000,000

Over $4,000,000 but $460,000 plus 14% of the

not over $5,000,000 amount by which the Hawaii

net taxable estate

exceeds $4,000,000

Over $5,000,000 but $600,000 plus 15.7% of the

not over $10,000,000 amount by which the Hawaii

net taxable estate

exceeds $5,000,000

Over $10,000,000 $1,385,000 plus 20% of the

amount by which the Hawaii

net taxable estate

exceeds $10,000,000.

(c) If any property of a resident is subject to a death tax imposed by another state and if the tax imposed by the other state is not qualified by a reciprocal provision allowing the property to be taxed in the state of the decedent's domicile, the amount of the tax due under this section shall be credited with the lesser of:

(1) The amount of the death tax actually paid to the other state; or

(2) An amount computed by multiplying the Hawaii estate tax by a fraction, the numerator of which is the value of the property subject to the death tax imposed by the other state, and the denominator of which is the total value of the decedent's gross estate.

(d) Except as otherwise expressly provided, for purposes of this chapter, the gross value of transferred property shall be its value as finally determined for purposes of the federal transfer tax. [L 2012, c 220, pt of §1; am L 2017, c 156, §1; am L 2018, c 27, §9 ; am L 2019, c 3, §1 ]
Haw. Rev. Stat. § 231-9.7 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-9.7
Informalities not to invalidate assessments, mistakes in names or notices, etc.
Status: in_force

No assessment or act relating to the assessment or collection of taxes shall be illegal nor shall such assessment, levy, or collection be invalid on account of mere informality or mistakes in names, notices, etc.
Haw. Rev. Stat. § 232-23 — HI Code / Division 1 / Title 14 / Chapter 232 / Section 232-23
Taxation.
Status: in_force

In the event of a final determination of an appeal by a county to the tax appeal court, the intermediate appellate court, or the supreme court on review, that a higher assessment should be made of the property involved, the additional tax due shall be collected in the same manner as the tax based upon the original assessment.
Haw. Rev. Stat. § 245-10 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-10
Appeals.
Status: in_force

Any person aggrieved by any assessment of the taxes 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.
Haw. Rev. Stat. § 235-52 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-52
Tax in case of joint return or return of surviving spouse.
Status: in_force

In the case of a joint return of a husband and wife under section 235-93, the tax imposed, as near as may be, by this chapter shall be twice the tax which would be imposed if the taxable income were cut in half. For purposes of this section and section 235-53, a return of a surviving spouse, as defined in the Internal Revenue Code, shall be treated as a joint return of a husband and wife under section 235-93. [L Sp 1957, c 1, pt of §2; Supp, §121-9; HRS §235-52; am L 1982, c 22, §1(3); am L 1987, c 239, §1(12)]
Haw. Rev. Stat. § 237-29.8 — HI Code / Division 1 / Title 14 / Chapter 237 / Section 237-29.8
Call centers; exemption; engaging in business; definitions.
Status: in_force

(a) This chapter shall not apply to amounts received from a person operating a call center by a person engaged in business as a telecommunications common carrier for interstate or foreign telecommunications services, including toll-free telecommunications, telecommunications capabilities for electronic mail, voice, and data telecommunications, computerized telephone support, facsimile, wide area telecommunications services, or computer-to-computer communication.

(b) The establishment of a call center in this State by any person shall not be used by itself by the State to find that any other part of the person's business is engaged in business in this State for the purposes of this chapter. Gross income or gross proceeds received by a call center for customer service and support shall be exempt from the measure of taxes imposed by this chapter.

(c) The department, by rule, may provide that the person providing the telecommunications service may take from the person operating a call center a certificate, in a form that the department shall prescribe, certifying that the amounts received for telecommunications services are for operating a call center. If the certificate is required by rule of the department, the absence of the certificate in itself shall give rise to the presumption that the amounts received from the sale of telecommunications services are not for operating a call center.

(d) As used in this section:

"Call center" means a physical or electronic operation that focuses on providing customer service and support for computer hardware and software companies, manufacturing companies, software service organizations, and telecommunications support services, within an organization in which a managed group of individuals spend most of their time engaging in business by telephone, usually working in a computer-automated environment; provided that the operation shall not include telemarketing or sales.

"Customer service and support" means product support, technical assistance, sales support, phone or computer-based configuration assistance, software upgrade help lines, and traditional help desk services.

"Telecommunications common carrier" means any person that owns, operates, manages, or controls any facility used to furnish telecommunications services for profit to the public, or to classes of users as to be effectively available to the public, engaged in the provision of services, such as voice, data, image, graphics, and video services, that make use of all or part of their transmission facilities, switches, broadcast equipment, signalling, or control devices.

"Telecommunications service" or "telecommunications" means the offering of transmission between or among points specified by a user, of information of the user's choosing, including voice, data, image, graphics, and video without change in the form or content of the information, as sent and received, by means of electromagnetic transmission, or other similarly capable means of transmission, with or without benefit of any closed transmission medium.

(e) This section shall not apply to gross proceeds or gross income received after June 30, 2010. [L 2000, c 195, §2]
Haw. Rev. Stat. § 231-70 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-70
Disposition of surplus moneys.
Status: in_force

(a) The officer charged with the duty of distributing the surplus arising from a tax sale under sections 231-63 to 231-68 shall pay from the surplus all state taxes, including interest and penalties, of whatsoever nature and howsoever accruing, as provided in section 231-62, and the officer may pay from the surplus the cost of a search of any records where such search is deemed advisable by the officer to ascertain the person or persons entitled to the surplus; provided that nothing in this section shall be construed to require the state tax collector to make or cause any such search to be made. If the officer is in doubt as to the person or persons entitled to the balance of the fund the officer may refuse to distribute the surplus and any claimant may sue the officer or the officer's successor in office in the circuit court in the circuit within which the property sold was situated. The officer may require the claimants to interplead, in which event the officer shall state the names of all claimants known to the officer, and shall cause them to be made parties to the action. If in the officer's opinion there may be other claimants who are unknown, the officer may apply for an order or orders joining all persons unknown having or claiming to have any legal or equitable right, title, or interest in the moneys or any part thereof or any lien or other claim with respect thereto.

(b) Any orders of the court or summons in the matter may be served as provided by law or the rules of court, and all persons having any interest in the moneys who are known, including the guardians of such of them as are under legal age or under any other legal disability (and if any one or more of them is under legal age or under other legal disability and without a guardian the court shall appoint a guardian ad litem to represent them therein) shall have notice of the action by personal service upon them. All persons having any interest in the moneys whose names are unknown or who if known do not reside within the State, or for any reason cannot be served with process within the State shall have notice of the action as provided by sections 634-23 to 634-27, except that any publication of summons shall be in at least one newspaper published in the State and having a general circulation in the circuit within which the property sold was situated, and the form of notice to be published shall provide a brief description of the property which was sold.

(c) All expenses incurred by the officer shall be met out of the surplus moneys realized from the sale. [L 1989, c 14, pt of §1(1)]
Haw. Rev. Stat. § 237D-2 — HI Code / Division 1 / Title 14 / Chapter 237D / Section 237D-2
Imposition and rates.
Status: in_force

(a) There is levied and shall be assessed and collected each month a tax of:

(1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994;

(2) Six per cent for the period beginning on July 1, 1994, to December 31, 1998;

(3) 7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009;

(4) 8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010;

(5) 9.25 per cent for the period beginning on July 1, 2010 to December 31, 2025; and

(6) Ten per cent for the period beginning on January 1, 2026, and thereafter,

on the gross rental or gross rental proceeds derived from furnishing transient accommodations; provided that an operator of a cruise ship shall be assessed and pay a tax of eleven per cent under this subsection on all gross rental proceeds derived from cruise fares prorated by the percentage of days docked at any port in the State in comparison to the total number of days of the voyage.

(b) Every transient accommodations broker, travel agency, and tour packager who arranges transient accommodations at noncommissioned negotiated contract rates and every operator or other taxpayer who receives gross rental proceeds shall pay to the State the tax imposed by subsection (a), as provided in this chapter.

(c) There is levied and shall be assessed and collected each month, on the occupant of a resort time share vacation unit, a transient accommodations tax of:

(1) 7.25 per cent on the fair market rental value until December 31, 2015;

(2) 8.25 per cent on the fair market rental value for the period beginning on January 1, 2016, to December 31, 2016;

(3) 9.25 per cent on the fair market rental value for the period beginning on January 1, 2017, to December 31, 2025; and

(4) Ten per cent on the fair market rental value for the period beginning on January 1, 2026, and thereafter.

(d) Every plan manager shall be liable for and pay to the State the transient accommodations tax imposed by subsection (c) as provided in this chapter. Every resort time share vacation plan shall be represented by a plan manager who shall be subject to this chapter.

(e) Notwithstanding the tax rates established in subsections (a)(6) and (c)(4), the tax rates levied, assessed, and collected pursuant to subsections (a) and (c) shall be eleven per cent for the period beginning on January 1, 2018, to December 31, 2030; provided that:

(1) The tax revenues levied, assessed, and collected pursuant to this subsection that are in excess of the revenues realized from the levy, assessment, and collection of tax at the ten per cent rate shall be deposited quarterly into the mass transit special fund established under section 248-2.7; and

(2) If a court of competent jurisdiction determines that the amount of county surcharge on state tax revenues deducted and withheld by the State, pursuant to section 248-2.6, violates statutory or constitutional law and, as a result, awards moneys to a county with a population greater than five hundred thousand, then an amount equal to the monetary award shall be deducted and withheld from the tax revenues deposited under paragraph (1) into the mass transit special fund, and those funds shall be a general fund realization of the State.

The remaining tax revenues levied, assessed, and collected at the ten per cent tax rate pursuant to subsections (a) and (c) shall be deposited into the general fund in accordance with section 237D-6.5(b). [L 1986, c 340, pt of §1; am L 1988, c 241, §3; am L Sp 1993, c 7, §18; am L 1998, c 156, §16; am L 2009, c 61, §§1, 4; am L 2011, c 103, §1; am L 2013, c 161, §§1, 3; am L 2015, c 93, §2; am L Sp 2017, c 1, §9; am L 2018, c 211, §3; am L 2021, c 90, §3; am L Sp 2021, c 1, §12; am L 2025, c 96, §5]
Haw. Rev. Stat. § 245-5 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-5
Returns.
Status: in_force

Every wholesaler or dealer, on or before the twentieth day of each month, shall file with the department a return showing the cigarettes and tobacco products sold, possessed, or used by the wholesaler or dealer during the preceding calendar month and of the taxes chargeable against the taxpayer in accordance with this chapter. The form of the return shall be prescribed by the department and shall include:

(1) A separate statement of the number and wholesale price of cigarettes;

(2) The amount of stamps purchased and used;

(3) The wholesale price of tobacco products, sold, possessed, or used; and

(4) Any other information that the department may deem necessary, for the proper administration of this chapter. [L 1939, c 220, §6; RL 1945, §5755; RL 1955, §125-5; am L Sp 1959 2d, c 1, §16; am L 1966, c 19, §5; HRS §245-5; gen ch 1985; am L 1993, c 220, §10; am L 1994, c 104, §3; am L 2000, c 249, §§5, 20(2); am L 2002, c 94, §3; am L 2010, c 22, §6]
Haw. Rev. Stat. § 235-2.3 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-2.3
Conformance to the federal Internal Revenue Code; general application.
Status: in_force

(a) For all taxable years beginning after December 31, 2024, as used in this chapter, except as provided in this section and sections 235-2.35, 235-2.4, and 235-2.45, "Internal Revenue Code" means subtitle A, chapter 1, of the federal Internal Revenue Code of 1986, as amended as of December 31, 2024, as it applies to the determination of gross income, adjusted gross income, ordinary income and loss, and taxable income, except those provisions of the Internal Revenue Code which, pursuant to this chapter, do not apply or are otherwise limited in application.

Sections 9672(1) (relating to tax treatment of targeted EIDL advances) and 9673(1) (relating to tax treatment of restaurant revitalization grants) of Public Law 117-2 shall be operative for purposes of this chapter. No amount received under section 9601 (relating to 2021 recovery rebates to individuals) of Public Law 117-2 shall be included in gross income for purposes of this chapter.

Sections 276(b)(1) (relating to subsequent paycheck protection program loans), 277 (relating to emergency financial aid grants), 278(b)(1) (relating to emergency EIDL grants and targeted EIDL advances), 278(c)(1) (relating to subsidy for certain loan payments), and 278(d)(1) (relating to grants for shuttered venue operators) of Division N of Public Law 116-260 shall be operative for purposes of this chapter. Sections 213 (relating to modification of limitations on charitable contributions) and 214 (relating to temporary special rules for health and dependent care flexible spending arrangements) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. Sections 301, 302, and 304 (relating to disaster tax relief) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. No amount received under section 272 (relating to additional 2020 recovery rebates for individuals) of Division N of Public Law 116-260 shall be included in gross income for purposes of this chapter.

Sections 1106(i) (relating to exclusion of loan forgiveness from gross income), 2202(b) (relating to loans from retirement plans), and 2205 (relating to charitable contributions) of Public Law 116-136 shall be operative for purposes of this chapter. No amount received under section 2201 (relating to recovery rebates) of Public Law 116-136 shall be included in gross income for purposes of this chapter.

Section 2202(a) (relating to tax-favored withdrawals from retirement plans) of Public Law 116-136 shall be operative for purposes of this chapter and shall apply to taxable years beginning after December 31, 2019.

Prior law shall continue to be used to determine:

(1) The basis of property, if a taxpayer first determined the basis of property in a taxable year to which prior law applies; and

(2) Gross income, adjusted gross income, ordinary income and loss, and taxable income for a taxable year to which prior law applies.

(b) The following Internal Revenue Code subchapters, parts of subchapters, sections, subsections, and parts of subsections shall not be operative for the purposes of this chapter, unless otherwise provided:

(1) Subchapter A (sections 1 to 59A) (with respect to determination of tax liability), except section 1(h)(2) (relating to net capital gain reduced by the amount taken into account as investment income), except sections 2(a), 2(b), and 2(c) (with respect to the definition of "surviving spouse" and "head of household"), except section 41 (with respect to the credit for increasing research activities), except section 42 (with respect to low-income housing credit), except sections 47 and 48, as amended, as of December 31, 1984 (with respect to certain depreciable tangible personal property), and except section 48(d)(3), as amended, as of February 17, 2009 (with respect to the treatment of United States Department of Treasury grants made under section 1603 of the American Recovery and Reinvestment Tax Act of 2009). For treatment, see sections 235-110.91, 235-110.7, and 235-110.8;

(2) Section 78 (with respect to dividends received from certain foreign corporations by domestic corporations choosing foreign tax credit);

(3) Section 86 (with respect to social security and tier 1 railroad retirement benefits);

(4) Section 91 (with respect to certain foreign branch losses transferred to specified 10-percent owned foreign corporations);

(5) Section 103 (with respect to interest on state and local bonds). For treatment, see section 235-7(b);

(6) Section 114 (with respect to extraterritorial income). For treatment, any transaction as specified in the transitional rule for 2005 and 2006 as specified in the American Jobs Creation Act of 2004 section 101(d) and any transaction that has occurred pursuant to a binding contract as specified in the American Jobs Creation Act of 2004 section 101(f) are inoperative;

(7) Section 120 (with respect to amounts received under qualified group legal services plans). For treatment, see section 235-7(a)(9) to (11);

(8) Section 122 (with respect to certain reduced uniformed services retirement pay). For treatment, see section 235-7(a)(3);

(9) Section 135 (with respect to income from United States savings bonds used to pay higher education tuition and fees). For treatment, see section 235-7(a)(1);

(10) Section 139C (with respect to COBRA premium assistance);

(11) Subchapter B (sections 141 to 150) (with respect to tax exemption requirements for state and local bonds);

(12) Section 151 (with respect to allowance of deductions for personal exemptions). For treatment, see section 235-54;

(13) Section 179B (with respect to expensing of capital costs incurred in complying with Environmental Protection Agency sulphur regulations);

(14) Section 181 (with respect to special rules for certain film and television productions);

(15) Section 196 (with respect to deduction for certain unused investment credits);

(16) Section 199 (with respect to the U.S. production activities deduction);

(17) Section 199A (with respect to qualified business income);

(18) Section 222 (with respect to qualified tuition and related expenses);

(19) Sections 241 to 247 (with respect to special deductions for corporations). For treatment, see section 235-7(c);

(20) Section 250 (with respect to foreign-derived intangible income and global intangible low-taxed income);

(21) Section 267A (with respect to certain related party amounts paid or accrued in hybrid transactions or with hybrid entities);

(22) Section 280C (with respect to certain expenses for which credits are allowable). For treatment, see section 235-110.91;

(23) Section 291 (with respect to special rules relating to corporate preference items);

(24) Section 367 (with respect to foreign corporations);

(25) Section 501(c)(12), (15), (16) (with respect to exempt organizations); except that section 501(c)(12) shall be operative for companies that provide potable water to residential communities that lack any access to public utility water services;

(26) Section 515 (with respect to taxes of foreign countries and possessions of the United States);

(27) Subchapter G (sections 531 to 565) (with respect to corporations used to avoid income tax on shareholders);

(28) Subchapter H (sections 581 to 597) (with respect to banking institutions), except section 584 (with respect to common trust funds). For treatment, see chapter 241;

(29) Section 642(a) and (b) (with respect to special rules for credits and deductions applicable to trusts). For treatment, see sections 235-54(b) and 235-55;

(30) Section 646 (with respect to tax treatment of electing Alaska Native settlement trusts);

(31) Section 668 (with respect to interest charge on accumulation distributions from foreign trusts);

(32) Subchapter L (sections 801 to 848) (with respect to insurance companies). For treatment, see sections 431:7-202 and 431:7-204;

(33) Section 853 (with respect to foreign tax credit allowed to shareholders). For treatment, see section 235-55;

(34) Section 853A (with respect to credits from tax credit bonds allowed to shareholders);

(35) Subchapter N (sections 861 to 999) (with respect to tax based on income from sources within or without the United States), except sections 985 to 989 (with respect to foreign currency transactions). For treatment, see sections 235-4, 235-5, and 235-7(b), and 235-55;

(36) Section 1042(g) (with respect to sales of stock in agricultural refiners and processors to eligible farm cooperatives);

(37) Section 1055 (with respect to redeemable ground rents);

(38) Section 1057 (with respect to election to treat transfer to foreign trust, etc., as taxable exchange);

(39) Sections 1291 to 1298 (with respect to treatment of passive foreign investment companies);

(40) Subchapter Q (sections 1311 to 1351) (with respect to readjustment of tax between years and special limitations), except for section 1341 (with respect to computation of tax where taxpayer restores substantial amount held under claim of right);

(41) Subchapter R (sections 1352 to 1359) (with respect to election to determine corporate tax on certain international shipping activities using per ton rate);

(42) Subchapter U (sections 1391 to 1397F) (with respect to designation and treatment of empowerment zones, enterprise communities, and rural development investment areas). For treatment, see chapter 209E;

(43) Subchapter W (sections 1400 to 1400C) (with respect to District of Columbia enterprise zone);

(44) Section 1400O (with respect to education tax benefits);

(45) Section 1400P (with respect to housing tax benefits);

(46) Section 1400R (with respect to employment relief);

(47) Section 1400T (with respect to special rules for mortgage revenue bonds);

(48) Section 1400U-1 (with respect to allocation of recovery zone bonds);

(49) Section 1400U-2 (with respect to recovery zone economic development bonds); and

(50) Section 1400U-3 (with respect to recovery zone facility bonds). [L 1978, c 173, §2(1); am L 1979, c 62, §2(1) to (3); am L 1980, c 235, §1 and c 238, §2; am L 1981, c 3, §2(2), c 208, §2, and c 209, §1; am L 1982, c 22, §1(1) and c 25, §1; am L 1983, c 88, §1; am L 1984, c 99, §1; am L 1985, c 19, pt of §1; am L 1986, c 283, §1; am L 1987, c 39, §2 and c 239, §1(5); am L 1988, c 10, §1(2), c 102, §1, c 107, §2, and c 216, §3; am L 1989, c 13, §1; am L 1990, c 15, §1 and c 289, §2; am L 1991, c 54, §1 and c 137, §2; am L 1992, c 37, §1; am L 1993, c 73, §1; am L 1994, c 13, §2; am L 1995, c 7, §1; am L 1996, c 187, §1; am L 1997, c 297, §2; am L 1998, c 113, §1; am L 1999, c 178, §28 and c 198, §1; am L 2000, c 174, §2; am L 2001, c 199, §1; am L 2002, c 223, §2; am L 2003, c 172, §2; am L 2004, c 89, §3; am L 2005, c 60, §2; am L 2006, c 124, §1; am L 2007, c 84, §1; am L 2008, c 93, §1; am L 2009, c 133, §2; am L 2010, c 112, §4; am L 2011, c 91, §2; am L 2012, c 179, §2 and c 184, §2; am L 2013, c 43, §2; am L 2014, c 88, §2; am L 2015, c 52, §2; am L 2016, c 33, §2 and c 53, §1; am L 2017, c 95, §2; am L 2018, c 27, §2; am L 2019, c 69, §2; am L 2020, c 13, §2 and c 70, §5; am L 2021, c 89, §2; am L 2022, c 7, §2; am L 2023, c 56, §2; am L 2024, c 75, §2 and c 178, §10; am L 2025, c 123, §2]
Haw. Rev. Stat. § 251-10 — HI Code / Division 1 / Title 14 / Chapter 251 / Section 251-10
Appeals.
Status: in_force

Any person aggrieved by any assessment of the surcharge tax for any month or any year 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.
Haw. Rev. Stat. § 245-3 — HI Code / Division 1 / Title 14 / Chapter 245 / Section 245-3
Taxes.
Status: in_force

(a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay, for the privilege of conducting business and other activities in the State, an excise tax equal to:

(1) 5.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 1998, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(2) 6.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after September 30, 2002, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(3) 6.50 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2003, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(4) 7.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2004, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(5) 8.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2006, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(6) 9.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2007, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(7) 10.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2008, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(8) 13.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after July 1, 2009, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(9) 11.00 cents for each little cigar sold, used, or possessed by a wholesaler or dealer on and after October 1, 2009, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(10) 15.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after July 1, 2010, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(11) 16.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after July 1, 2011, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(12) 18.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after January 1, 2026, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(13) Seventy per cent of the wholesale price of each article or item of tobacco products, other than large cigars, electronic smoking devices, and e-liquids, sold by the wholesaler or dealer on and after September 30, 2009, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;

(14) Fifty per cent of the wholesale price of each large cigar of any length sold, used, or possessed by a wholesaler or dealer on and after September 30, 2009, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer; and

(15) Seventy per cent of the wholesale price of each electronic smoking device or e-liquid sold, used, or possessed by a wholesaler or dealer on and after January 1, 2024, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer.

Where the tax imposed has been paid on cigarettes, little cigars, or tobacco products that thereafter become the subject of a casualty loss deduction allowable under chapter 235, the tax paid shall be refunded or credited to the account of the wholesaler or dealer. The tax shall be applied to cigarettes through the use of stamps.

(b) The taxes, however, are subject to the following limitations:

(1) The measure of the taxes shall not include any cigarettes or tobacco products exempted, and so long as the same are exempted, from the imposition of taxes by the Constitution or laws of the United States;

(2) The measure of taxes shall exempt and exclude all sales of cigarettes and tobacco products to the United States (including any agency or instrumentality thereof that is wholly owned or otherwise so constituted as to be immune from the levy of a tax under this chapter), sold by any person licensed under this chapter; and

(3) The taxes shall be paid only once with respect to the same cigarettes or tobacco product. This limitation shall not prohibit the imposition of the excise tax on receipts from sales of tobacco products under subsection (a)(5); provided that the amount subject to the tax on each sale shall not include amounts previously taxed under this chapter. [L 1939, c 220, §4; RL 1945, §5753; am L 1945, c 115, §1; am L 1949, c 344, §1; RL 1955, §125-3; am L 1957, c 34, §21; am L Sp 1957, c 1, §8(b); am L 1965, c 155, §6; HRS §245-3; gen ch 1985; am L 1993, c 220, §9; am L 1994, c 104, §2; am L 1997, c 331, §1; am L 1999, c 10, §1; am L 2000, c 249, §§4, 20(2); am L 2002, c 94, §3 and c 246, §§2, 3; am L 2003, c 3, §7; am L 2006, c 316, §7; am L 2009, c 56, §1 and c 58, §3; am L 2010, c 59, §3 and c 90, §3; am L 2023, c 62, §5; am L 2025, c 95, §2]
Haw. Rev. Stat. § 235-35 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-35
Apportionment; sales factor.
Status: in_force

The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this State during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
Haw. Rev. Stat. § 231-98 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-98
Tax avoidance price fixing.
Status: in_force

It shall be unlawful for any person to sell, offer to sell, or otherwise convey more than one price for any business to be transacted when the lower price is offered if the transaction is paid for in cash. It shall not be an offense under this section if a business charges a higher price for legitimate business purposes, such as for the purpose of recovering any charges assessed the business, including for facilitating electronic payment. Any person who violates this section shall be subject to a fine not to exceed $2,000; provided that if the person is a cash-based business, the fine shall not exceed $3,000.
Haw. Rev. Stat. § 232-9 — HI Code / Division 1 / Title 14 / Chapter 232 / Section 232-9
Clerk; reporter; custody of records.
Status: in_force

The clerk of the land court shall be ex officio the clerk of the tax appeal court and shall serve as such without additional compensation. The clerk shall record all the proceedings of the court and perform, on its behalf, any routine duties which it may assign to the clerk. Upon the entry of any written order of the court, the clerk shall immediately send a copy thereof to all interested parties and to the department of taxation which shall forthwith correct the assessment list to conform thereto. All records of the court shall be kept in the office of the clerk. Any assistant to the clerk may act in the place of the clerk.

Whenever necessary the court shall engage the services of a reporter who shall receive such compensation as may be fixed by it. The office of the court shall be in the judiciary building, at Honolulu, but it may sit at such other places as it may deem necessary. [L 1932 2d, c 40, §47; am L 1933, c 195, §3; RL 1935, §1946; RL 1945, §5205; RL 1955, §116-6; am L Sp 1959 2d, c 1, §16; HRS §232-9; gen ch 1985]
Haw. Rev. Stat. § 231-3.1 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-3.1
Consideration paid not indicative of fair market value.
Status: in_force

Where sales are made by a taxpayer, taxable under title 14, to other affiliated companies or persons, or under other circumstances where the relation between the taxpayer and the buyer is such that the consideration paid, if any, is not indicative of the fair market value, the taxpayer shall pay the taxes imposed under title 14, measured by the fair market value, corresponding as nearly as possible to the gross proceeds of sales of like quality and character by other persons, where no common interest exists between the buyer and seller but the circumstances and conditions are otherwise similar. If no such comparable sales exist between nonaffiliated buyers and sellers, the department may prescribe equitable and uniform rules for ascertaining the fair market value of the sale.

As used in this section, "affiliated companies or persons" means two or more organizations, trades, or businesses (whether or not incorporated, organized in the United States, or affiliated) owned or controlled directly or indirectly by the same interests, including companies or persons described in section 237-23.5. [L 2002, c 153, §2]
Haw. Rev. Stat. § 249-17 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-17
False tag, license plate, bicycle or moped, penalty.
Status: in_force

Any person who uses a tag, or license plate, not furnished in accordance with section 249-14 or section 249-14.1, or who counterfeits any such tag, or license plate, or who fraudulently removes such a tag, or license plate, from any bicycle or moped, shall be fined not more than $500.
Haw. Rev. Stat. § 235-93.4 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-93.4
Effect of civil union.
Status: in_force

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. § 249-9 — HI Code / Division 1 / Title 14 / Chapter 249 / Section 249-9
Number plates; purchase.
Status: in_force

(a) The number plates hereinabove referred to shall be used upon all vehicles for which a tax has been paid pursuant to sections 249-1 to 249-13. All number plates shall:

(1) If issued before January 1, 2025, bear the word "Hawaii" along the upper portion of the plate and the words "Aloha State" along the lower portion of the plate;

(2) If issued on or after January 1, 2025, bear the word "Hawai`i" along the upper portion of the plate and the words "Aloha State" along the lower portion of the plate; provided that both "Hawai`i" and "Aloha State" may either contain all uppercase or lowercase letters or have the first letter of each word be uppercase;

(3) Have a distinct contrast between the color of the plate and the numerals and letters thereon; and

(4) Be of any shape, size, and color, and with any arrangements of letters and numbers as may, subject to sections 249-1 to 249-13, be determined by the directors of finance of each county through majority consent.

The numerals on all number plates shall be no less than three inches in height and the strokes thereof no less than three-eighths inch in width, except in the case of motorcycles, in which case the numerals shall be no less than one inch in height and the strokes thereof no less than one-eighth inch in width.

The director of finance of the city and county of Honolulu shall contract annually on behalf of the counties for the purchase of all number plates, tags, or emblems required. The council of each county shall appropriate and cause to be paid over to the party with whom the director of finance of the city and county of Honolulu shall contract, or to the director of finance of the city and county of Honolulu as the director may direct, the sum or sums as the director of finance of the city and county of Honolulu shall determine to be the county's proportionate share of the expense of the contract and the charges connected therewith. The contract shall be made by the director of finance of the city and county of Honolulu as agent of the several counties, and the proportionate liability of each county shall be stated in the contract. Notwithstanding any other provision of the law, the contract shall constitute a valid obligation of each county for its proportionate share.

(b) The number plates for members of the Congress of the United States from the State shall designate their office and be of the type and color authorized for motor vehicles in the State; provided that the number on the plates of the United States senator and the United States representative shall be assigned in terms of seniority of service with the senator or representative having the greater length of service having the number "1" and consecutively thereafter for the others. The director of finance of the city and county of Honolulu shall, in the director's procurement of the number plates on behalf of the counties, contract for the number plates of the members of Congress and all expenses connected therewith shall be paid by the respective members of Congress.

(c) Notwithstanding any other provision of the law, any antique motor vehicle shall be issued a special number plate for a fee of $10 which plate shall be permanent and valid for use on such vehicles so long as the vehicle is in existence in lieu of the uniform state number plates. The director of finance may discard and allow for new applications of inactive special number plates that have not been assigned or registered during the preceding three years. In addition to the payment of any other fee required by law, applicable to antique motor vehicles, the owner of any such vehicle shall pay the fee for the issuance of the special number plate. The registration numerals and special number plates assigned to antique motor vehicles shall be labeled "Horseless Carriage" and "Permanent" and shall run in a separate numerical series, commencing with Horseless Carriage No. 1. [RL 1935, pt of §2157; am L 1937, c 214, §1, subs 6; RL 1945, §5710; am L 1947, c 33, §1; am L 1951, c 162, §4; RL 1955, §130-9; am L Sp 1959 2d, c 1, §9; am L 1961, c 11, §1; am L 1967, c 137, §3; HRS §249-9; am L 1982, c 237, §2; gen ch 1985; am L 1990, c 132, §2; am L 1997, c 326, §2; am L 1999, c 208, §1; am L 2024, c 64, §1]
Haw. Rev. Stat. § 236D-3 — HI Code / Division 1 / Title 14 / Chapter 236D / Section 236D-3
Residents; tax imposed; credit for tax paid other state.
Status: in_force

(a) A tax in an amount equal to the federal credit is imposed on the transfer of the taxable estate of every resident.

(b) If any property of a resident is subject to a death tax imposed by another state for which a credit is allowed by section 2011; and, if the tax imposed by the other state is not qualified by a reciprocal provision allowing the property to be taxed in the state of decedent's domicile, the amount of the tax due under this section shall be credited with the lesser of:

(1) The amount of the death tax paid the other state and credited against the federal estate tax; or

(2) An amount computed by multiplying the federal credit by a fraction, the numerator of which is the value of the property subject to the death tax imposed by the other state, and the denominator of which is the value of the decedent's gross estate. [L 1983, c 217, pt of §1]
Haw. Rev. Stat. § 236E-19 — HI Code / Division 1 / Title 14 / Chapter 236E / Section 236E-19
Parent as natural guardian for purposes of sections 2032A and 2057 of the Internal Revenue Code.
Status: in_force

A parent, without being appointed guardian of the person or conservator of the estate, or a conservator of the estate, or, if no conservator of the estate has been appointed, a guardian of the person, of any minor or disabled person whose interest is not adverse to the minor or disabled person, may make any election and sign, without court approval, any agreement on behalf of the minor or disabled person under:

(1) Section 2032A of the Internal Revenue Code for the valuation of property under that section; or

(2) Section 2057 of the Internal Revenue Code relating to deduction of the value of certain property under that section.

Any election so made, and any agreement so signed, shall have the same legal force and effect as if the election had been made and the agreement had been signed by the minor or disabled person and the minor or disabled person had been legally competent. [L 2012, c 220, pt of §1]
Haw. Rev. Stat. § 231-40.5 — HI Code / Division 1 / Title 14 / Chapter 231 / Section 231-40.5
Statute of limitations; extension for substantial omissions.
Status: in_force

(a) Notwithstanding any other law to the contrary limiting the time for assessment of any tax, if a taxpayer omits an amount of:

(1) Gross income or gross proceeds of sale;

(2) Gross rental or gross rental proceeds;

(3) Price, value, or consideration paid or received for any property;

(4) Gross receipts; or

(5) Gallonage, tonnage, cigarette count, day, or other weight or measure applicable to any tax,

properly includable therein that is in excess of twenty-five per cent of the amount stated in the return, the tax may be assessed or a proceeding in court with respect to the tax without assessment may be begun without assessment, at any time within six years after the return was filed.

(b) In determining any amount omitted, there shall not be taken into account any amount that is stated in the return if such amount is disclosed in the return or in a statement attached to the return in a manner adequate to apprise the department of taxation of the nature and amount of such item.

(c) This section shall be construed in accordance with regulations and judicial interpretations given to section 6501 of the Internal Revenue Code. [L 2009, c 166, §5]
Haw. Rev. Stat. § 235-102.6 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-102.6
Refund splitting.
Status: in_force

(a) Any individual taxpayer required to make a return under this chapter shall be entitled to direct the deposit of an income tax refund into a maximum of three checking or savings accounts at a financial institution; provided that a taxpayer designating the direct deposit shall have electronically filed the taxpayer's return for federal and state income taxes and made a similar direct deposit electronic designation to the same checking or savings accounts on the electronic return.

(b) The department of taxation shall be authorized to modify and revise its returns and computer systems to carry out the purposes of this section. [L 2008, c 202, §2]
Haw. Rev. Stat. § 235-104 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-104
Penalties.
Status: in_force

Penalties and interest shall be added to and become part of the tax, when and as provided by sections 231-39 and 235-97. The penalties and interest provided by section 231-39 shall apply to employers as well as taxpayers. [L Sp 1957, c 1, pt of §2; Supp, §121-38; HRS §235-104]
Haw. Rev. Stat. § 235-4 — HI Code / Division 1 / Title 14 / Chapter 235 / Section 235-4
Income taxes by the State; residents, nonresidents, corporations, estates, and trusts.
Status: in_force

(a) Residents. The tax imposed by this chapter applies to the entire income of a resident, computed without regard to source in the State.

(b) Nonresidents. In the case of a nonresident, the tax applies to the income received or derived from property owned, personal services performed, trade, or business carried on, and any and every other source in the State.

In the case of a nonresident spouse filing a joint return with a resident spouse, the tax applies to the entire income of the nonresident spouse computed without regard to source in the State.

(c) Change of status. Except where a joint return is filed, when the status of a taxpayer changes during the taxable year from resident to nonresident, or from nonresident to resident, the tax imposed by this chapter applies to the entire income earned during the period of residence in the manner provided in subsection (a) of this section and during the period of nonresidence the tax shall apply upon the income received or derived as a nonresident in the manner provided in subsection (b) of this section; provided that if it cannot be determined whether income was received or derived during the period of residence or during the period of nonresidence, there shall be attributed to the State such portion of the income as is determined by applying to such income for the whole taxable year the ratio which the period of residence in the State bears to the whole taxable year, unless the taxpayer shows to the satisfaction of the department of taxation that the result is to attribute to the state income, dependent upon residence, received or derived during the period of nonresidence, in which event the amount of income as to which such showing is made shall be excluded.

The apportionment of income provided by this subsection shall not apply where one spouse is a resident of this State and a joint return is filed with the nonresident spouse in which event the tax shall be computed on their aggregate income in the manner provided in section 235-52 without regard to source in the State. Where, however, both spouses change their status from resident to nonresident or from nonresident to resident, their income shall be apportioned in the manner provided in this subsection.

(d) A corporation, foreign or domestic, is taxable upon the income received or derived from property owned, trade or business carried on, and any and every other source in the State. In addition thereto a domestic corporation is taxable upon its income from property owned, trade or business carried on, and any and every other source outside the State, unless subjected to income tax thereon in any other jurisdiction. Subjection to federal tax does not constitute subjection to income tax in another jurisdiction. "Corporation" includes any professional corporation incorporated pursuant to chapter 415A or 416.

(e)(1) The income of a resident estate or trust shall be computed without regard to source in the State. The income of a nonresident estate or trust shall be that received or derived from sources in the State.

(2) A beneficiary of an estate or trust, or person treated as the owner of any portion of a trust, who is taxable upon income thereof under the Internal Revenue Code, shall be taxed thereon as herein provided, irrespective of the taxability of the estate or trust or whether it is required to make a fiduciary return under this chapter. If all such income consists of income which would be taxable under this chapter if received directly by the beneficiary or person, the beneficiary or person shall be taxed upon all of it. If some of it consists of income which would not be taxable if received directly by the beneficiary or person, then unless the trust instrument provides otherwise the income of each such beneficiary or person shall be conclusively presumed to have been received or derived out of each class of income of the estate or trust, and the beneficiary or person shall be taxed upon such part of it as would be taxable if received directly by the beneficiary or person.

(3) Each estate or trust shall include in its return all of the information necessary to determine the taxability of the income of the estate or trust, regardless of source. Only in the case of a nonresident estate or trust of which all the beneficiaries are nonresidents and no part of which is treated as owned by a resident shall the return be confined to income from sources in the State. This paragraph shall not cause income to be taxed to an estate or trust that otherwise would not have been so taxed. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-3; HRS §235-4; am L 1969, c 226, §5; am L 1974, c 9, §1; am L 1976, c 60, §1; am L 1978, c 95, §1; am L 1983, c 167, §18 and c 206, §1; am L 1985, c 270, §4; gen ch 1985; am L 1988, c 141, §19]
Haw. Rev. Stat. § 241-7 — HI Code / Division 1 / Title 14 / Chapter 241 / Section 241-7
Disposition of funds.
Status: in_force

From the revenues collected under this chapter each fiscal year, the sum representing the first $2,000,000 of such revenues shall be deposited with the director of finance to the credit of the compliance resolution fund as established pursuant to section 26-9(o) before tax credits are realized. Any revenues collected under this chapter in excess of $2,000,000 at the close of any fiscal year shall be deposited into the general fund. [L Sp 1957, c 1, pt of §10(a); Supp, §127-7; HRS §241-7; am L 1999, c 182, §1; am L 2001, c 28, §1; am L 2022, c 72, §2]