2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-114 Appeals.

§235-114 Appeals.
(a) Any person aggrieved by any assessment of the tax or liability imposed by this chapter may appeal from the assessment in the manner and within the time hereinafter set forth. Appeal may be made either to the taxation board of review or to the tax appeal court. The first appeal to either the taxation board of review or to the tax appeal court may be made without payment of the tax assessed. Either the taxpayer or the assessor may appeal to the tax appeal court from a decision by the board or to the intermediate appellate court from a decision by the tax appeal court; provided that if the decision by the board or the tax appeal court is appealed by the taxpayer, or the decision by the board in favor of the department is not appealed, the taxpayer shall pay the tax assessed plus interest as provided in section 231-39(b)(4).
(b) If the appeal is first made to the board, the appeal shall either be heard by the board or be transferred to the tax appeal court for hearing at the election of the taxpayer or employer. If heard by the board, an appeal shall lie from the decision thereof to the tax appeal court and to the intermediate appellate court, subject to chapter 602, in the manner and with the costs provided by chapter 232. The supreme court shall prescribe forms to be used in the appeals. The forms shall show:
(1) The amount of taxes or liability upon the basis of the taxpayer's computation of the taxpayer's taxable income or the employer's computation of the employer's liability;
(2) The amount upon the basis of the assessor's computation;
(3) The amount upon the basis of the decisions of the taxation board of review and tax appeal court, if any; and
(4) The amount in dispute.
If or when the appeal is filed with or transferred to the tax appeal court, the court shall proceed to hear and determine the appeal, subject to appeal to the intermediate appellate court as is provided in chapter 232.
(c) Any taxpayer or employer appealing from any assessment of income taxes or liability shall lodge with the assessor or assistant assessor a notice of the appeal in writing, stating the ground of the taxpayer's or employer's objection to the additional assessment or any part thereof. The taxpayer or employer also shall file the notice of appeal with the board or the tax appeal court at any time within thirty days subsequent to the date when the notice of assessment was mailed, properly addressed to the taxpayer or employer at the taxpayer's or employer's last known residence or place of business. Except as otherwise provided, the manner of taking the appeal, the costs applicable thereto, and the hearing and disposition thereof, including the distribution of costs and of taxes paid by the taxpayer pending the appeal, shall be as provided in chapter 232.
The tax appeal court may allow an individual taxpayer to file a subsequent appeal without payment of the net income tax in cases where the total tax liability does not exceed $50,000 in the aggregate for all tax years, upon proof that the taxpayer would be irreparably injured by payment of the tax. [L Sp 1957, c 1, pt of §2; Supp, §121-46; am L 1967, c 37, §1; HRS §235-114; am L 1973, c 51, §3; gen ch 1985; am L 1992, c 147, §3; am L 2000, c 199, §2; am L 2004, c 123, §1 and c 202, §25; am L 2006, c 91, §2 and c 94, §1; am L 2010, c 109, §1; am L 2021, c 118, §16]
Rules of Court
See Tax Appeal Court Rules.
Case Notes
Provides avenue for a full and fair consideration of taxpayer's challenge to gross receipts tax. 742 F.2d 546 (1984).
Taxpayer's 42 U.S.C. §1983 claim against validity of Hawaii's general excise tax barred, where state remedies available to taxpayer were "plain, adequate, and complete". 940 F. Supp. 260 (1995).
Mandamus to compel issuance of certificate of appeal. 18 H. 362 (1907).
Where taxpayer failed to pay the assessed tax as required by this section, the tax appeal court lacked jurisdiction for taxpayer's appeal and properly dismissed appeal. 108 H. 69 (App.), 116 P.3d 711 (2005).