reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-117 Reciprocal supplying of tax information.

§235-117 Reciprocal supplying of tax information.
Notwithstanding section 235-116, the department may permit the Secretary of the Treasury of the United States, the Commissioner of Internal Revenue, the Multistate Tax Commission, or the proper officer of any state or territory imposing an income tax upon incomes of persons taxable under this chapter, or any county of this State, or the authorized representatives thereof to inspect the income tax returns and estimates of any such person for tax purposes only. The department may also furnish to these authorized persons an abstract of an income tax return or estimate or supply these persons with information concerning any item of income contained in a return or disclosed by the report of an investigation of the income or return of a taxpayer. The Multistate Tax Commission may make the information available to a duly accredited tax official of the United States, any state or territory, or the authorized representative thereof, for tax purposes only. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-49; HRS §235-117; am L 1974, c 139, §4; am L Sp 2005, c 9, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-118 Rules and regulations.

§235-118 Rules and regulations.
Except as otherwise provided in this chapter, the department of taxation shall prescribe and have printed all needful rules and regulations for the enforcement of this chapter and such rules and regulations so made shall have the force and effect of law if they be not in conflict with the express statutory provisions to which the same are applicable. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-50; HRS §235-118]
Cross References
Rules, see chapter 91.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-119 Taxes, state realizations.

§235-119 Taxes, state realizations.
All income taxes shall be for the use of the State and shall be paid into the state treasury at such times as the director of finance shall direct. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; Supp, §121-52; HRS §235-119]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-121 Title; definitions; federal conformity; construction.

§235-121 Title; definitions; federal conformity; construction.
(a) The title of this part shall be the Hawaii S corporation income tax act.
(b) For purposes of this part, the following terms shall have the following meanings:
"C corporation" means a corporation which is not an S corporation.
"Income attributable to the State" means items of income, loss, deduction, or credit of the S corporation apportioned to this State pursuant to part II of this chapter or allocated to this State pursuant to section 235-5.
"Income not attributable to the State" means all items of income, loss, deduction, or credit of the S corporation other than income attributable to the State.
"Internal Revenue Code" has the meaning set forth in section 235-2.3 and as it applies to the taxable period; section references of the Internal Revenue Code shall be deemed to refer to corresponding provisions of prior and subsequent federal tax laws.
"Post-termination transition period" means that period defined in section 1377(b)(1) of the Internal Revenue Code.
"Pro rata share" means the share determined with respect to an S corporation shareholder for a taxable period in the manner provided in section 1377(a)(1) or (2) or 1362(e)(2) or (3) or (6)(D), as the case may be, of the Internal Revenue Code.
"S corporation" means a corporation for which a valid election under section 1362(a) of the Internal Revenue Code is in effect.
"Taxable period" means any taxable year or portion of a taxable year during which a corporation is an S corporation.
(c) Except as otherwise expressly provided or clearly appearing from the context, any term used in this part shall have the same meaning as when used in a comparable context in the Internal Revenue Code, or in any statute relating to federal income taxes, in effect for the taxable period. Due consideration shall be given in the interpretation of this part to applicable sections of the Internal Revenue Code in effect from time to time and to federal rulings and regulations interpreting those sections, provided the Internal Revenue Code rulings and regulations do not conflict with this part or other provisions of this chapter.
(d) This part shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject matter of this part among states enacting it. [L 1990, c 16, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-122 Taxation of an S corporation and its shareholders.

§235-122 Taxation of an S corporation and its shareholders.
(a) An election under section 1361(b)(3) and (e), or 1362(a) of the Internal Revenue Code shall be effective for the purposes of this chapter. Evidence of a valid election for federal purposes shall be submitted to the department in such form and at such time the department may prescribe.
(b) Except as provided in the following sentence, an S corporation shall not be subject to the tax imposed by section 235-71. If income of an S corporation is subject to federal income tax, then such income as modified by section 235-123, to the extent it constitutes income attributable to the State, shall be taxed at the highest marginal rate of tax imposed on the net income of corporations. If an S corporation is required to pay a tax to this State by reason of the preceding sentence, then the income attributable to the State of the S corporation shall be reduced by the amount of the tax.
(c) Each shareholder's pro rata share of income attributable to the State and each resident shareholder's pro rata share of income not attributable to the State, to the extent modified pursuant to section 235-123, shall be taken into account by the shareholder in the manner provided in section 1366 of the Internal Revenue Code for the purposes of section 235-4 and shall be taxable under section 235-51. [L 1990, c 16, pt of §1; am L 1997, c 297, §5]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-123 Modification and characterization of income.

§235-123 Modification and characterization of income.
(a) The pro rata share of each resident and nonresident shareholder in the income attributable to the State of an S corporation, for the purposes of section 235-122(c), shall be subject to the modifications to corporate income provided by this chapter.
(b) The pro rata share of each resident shareholder in the income not attributable to the State of an S corporation, for the purposes of section 235-122(c), shall be subject to the modifications to individual income provided by this chapter.
(c) S corporation items taken into account by a shareholder pursuant to section 235-122(c) shall be characterized as though received or incurred by the corporation and not its shareholder. [L 1990, c 16, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-125 Carryforwards and carrybacks; loss limitation.

§235-125 Carryforwards and carrybacks; loss limitation.
(a) Carryforwards and carrybacks to and from taxable periods of an S corporation shall be restricted in the manner provided in section 1371(b) of the Internal Revenue Code.
(b) The aggregate amount of losses or deductions of an S corporation taken into account by a shareholder pursuant to section 235-122(c) shall not exceed the combined adjusted bases, determined in accordance with section 235-124, of the shareholder in the stock and indebtedness of the S corporation.
(c) Any loss or deduction which is disallowed for a taxable period pursuant to subsection (b) shall be treated as incurred by the corporation in the succeeding taxable period with respect to the shareholder.
(d)(1) Any loss or deduction which is disallowed pursuant to subsection (b) for the corporation's last taxable period as an S corporation shall be treated as incurred by a shareholder on the last day of any post-termination transition period.
(2) The aggregate amount of losses and deductions taken into account by a shareholder pursuant to paragraph (1) shall not exceed the adjusted basis of the shareholder in the stock of the corporation (determined in accordance with section 235-124 at the close of the last day of any post-termination transition period and without regard to this subsection). [L 1990, c 16, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-125.5 Transition rule.

§235-125.5 Transition rule.
(a) A corporation for which an S election was in effect for federal purposes but not for Hawaii purposes for the taxable period immediately preceding the taxable period beginning after December 31, 1989, may elect before December 31, 1992, not to have section 235-125(a) apply to carryforwards from taxable periods preceding the taxable period beginning after December 31, 1989, for which a Hawaii S election was not in effect. An election pursuant to this section shall be applicable to all such carryforward items.
(b) A net operating loss carryforward subject to an election under this section shall be allowed as a deduction in computing S corporation taxable income after all other items of income and deductions have been taken into account in accordance with this part and shall not reduce S corporation taxable income below zero.
(c) A carryforward, other than a net operating loss carryforward, subject to an election under this section shall be taken into account by the corporation in computing taxable income as though an S election were not in effect for the year. In computing taxable income under this subsection, the allowance of a deduction for a net operating loss carryforward shall be determined in accordance with subsection (b).
(d) No carryforwards subject to the election under this section may be carried forward to a C corporation year within the meaning of Internal Revenue Code section 1371(b).
(e) An election pursuant to this section shall be made on a timely filed (including extension) S corporation income tax return for the first taxable period beginning after December 31, 1989, or an amended return filed before December 31, 1992. A copy of the election shall be attached to the S corporation tax return for each year to which the carryforward is carried. [L 1991, c 24, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-126 Part-year residence.

§235-126 Part-year residence.
For purposes of this part if a shareholder of an S corporation is both a resident and nonresident of this State during any taxable period, the shareholder's pro rata share of the S corporation's income attributable to the State and income not attributable to the State for the taxable period shall be further prorated between the shareholder's periods of residence and nonresidence, in accordance with the number of days in each period. [L 1990, c 16, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-127 Distributions.

§235-127 Distributions.
(a) Subject to subsection (c), a distribution made by an S corporation with respect to its stock to a resident shareholder shall be taken into account by the shareholder for purposes of section 235-4 and shall be taxable under section 235-51 to the extent that the distribution is treated as a dividend or as gain from the sale or exchange of property pursuant to section 1368 of the Internal Revenue Code.
(b) Subject to subsection (c), a distribution of money made by a corporation with respect to its stock to a resident shareholder during a post-termination transition period shall not be taken into account by the shareholder for purposes of section 235-4 to the extent the distribution is applied against and reduces the adjusted basis of the stock of the shareholder in accordance with section 1371(e) of the Internal Revenue Code.
(c) In applying sections 1368 and 1371(e) of the Internal Revenue Code to any distribution referred to in subsection (a) or (b):
(1) The term "adjusted basis of the stock" means the adjusted basis of the shareholder's stock as determined under section 235-124; and
(2) The accumulated adjustments account for this State shall be equal to, and shall be adjusted in the same manner as, the S corporation's accumulated adjustments account defined in section 1368(e)(1)(A) of the Internal Revenue Code, except that the account shall also be adjusted by any modifications required to be made pursuant to section 235-123(a). [L 1990, c 16, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-129 Tax credits.

§235-129 Tax credits.
(a) For purposes of section 235-55, each resident shareholder shall be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to a state that does not measure the income of S corporation shareholders by the income of the S corporation. For purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income.
(b) Each shareholder of an S corporation shall be allowed a credit against the tax imposed by section 235-51 in an amount equal to the shareholder's pro rata share of the tax credit earned by the S corporation in this State. [L 1990, c 16, pt of §1; am L 1992, c 105, §1; am L 2007, c 151, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-130 LIFO recapture.

§235-130 LIFO recapture.
If an S corporation is subject to last in first out (LIFO) recapture pursuant to section 1363 of the Internal Revenue Code, then:
(1) Any increase in the tax imposed by section 235-71 by reason of the inclusion of the LIFO recapture amount in its income shall be payable in four equal installments;
(2) The first installment shall be paid on or before the due date (determined without regard to extensions) for filing the return for the first taxable year for which the corporation was subject to the LIFO recapture;
(3) The three succeeding installments shall be paid on or before the due date (determined without regard to extensions) for filing the corporation's return for the three succeeding taxable years; and
(4) For purposes of computing interest on underpayments, the last three installments shall not be considered underpayments until after the payment due date specified above. [L 1990, c 16, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-2.3 Effect of civil union.

§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. [L 2011, c 1, §5]
Attorney General Opinions
Civil union partners have all the same rights, benefits, protections, and responsibilities under the law as married couples who are of the opposite gender; civil union partners have the same tax filing status options as married couples who are of the opposite gender for Hawaii income tax purposes for taxable years beginning after December 31, 2011. Att. Gen. Op. 11-2.
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-2.5 Taxation under chapter 236D; applicable exclusion amount.

§236D-2.5 Taxation under chapter 236D; applicable exclusion amount.
Notwithstanding any other law to the contrary, a decedent shall be entitled to all applicable exclusion or exemption amounts as determined under the Internal Revenue Code as of December 31, 2009, before being subject to any taxes imposed under this chapter, including up to a $3,500,000 applicable exclusion amount allowed by section 2010 of the Internal Revenue Code on December 31, 2009, as further adjusted by law. [L 2010, c 74, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-3 Residents; tax imposed; credit for tax paid other state.

§236D-3 Residents; tax imposed; credit for tax paid other state.
(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]
Law Journals and Reviews
Is The Hawaii Estate Tax Our State's Newest Supertramp? 14 HBJ, no. 13, at 91 (2011).
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-3.5 Generation-skipping transfers; tax imposed; credit for tax paid other state.

§236D-3.5 Generation-skipping transfers; tax imposed; credit for tax paid other state.
(a) A tax in an amount equal to the federal credit is imposed on every generation-skipping transfer of:
(1) Property located in this State; and
(2) Property from a resident trust.
(b) If the generation-skipping transfer is subject in another state to a similar tax and qualifies for the federal credit, the amount of the tax due under this section shall be credited with the lesser of:
(1) The amount of the tax paid to the other state and credited against the federal 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 generation-skipping transfer tax paid to the other state, and the denominator of which is the value of all property subject to the federal generation-skipping transfer tax.
If paragraph (1) or (2) results in an amount less than the total federal credit allowed being paid to all states which may claim any part of the credit, then the interested states may agree to a fair and equitable apportionment of the credit without regard to the residence of the trust.
[L 1994, c 142, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-4 Nonresidents; tax imposed; exemption.

§236D-4 Nonresidents; tax imposed; exemption.
(a) A tax in an amount computed as provided in this section is imposed on the transfer of the taxable estate located in Hawaii of every nonresident.
(b) The tax shall be computed by multiplying the federal credit by a fraction, the numerator of which is the value of the property located in Hawaii, and the denominator of which is the value of the decedent's gross estate.
(c) The transfer of the property of a nonresident is exempt from the tax imposed by this section to the extent that the property of residents is exempt from taxation under the laws of the state in which the nonresident is domiciled, except that:
(1) Real property having an actual situs in this State, whether or not held in a trust the corpus of which is included in a decedent's gross estate for federal estate tax purposes;
(2) A beneficial interest in a land trust which owns real property located in the State; and
(3) Tangible personal property having an actual situs in this State;
shall be subject to tax under this section. [L 1983, c 217, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-4.5 Nonresidents not citizens; tax imposed; exemption.

§236D-4.5 Nonresidents not citizens; tax imposed; exemption.
(a) A tax in an amount computed as provided in this section is imposed on the noncitizen transfer of the taxable estate located in Hawaii of every nonresident decedent who was not a citizen at the time of their death.
(b) The tax shall be computed by multiplying the federal credit by a fraction, the numerator of which is the value of the property with a situs in Hawaii, and the denominator of which is the value of the decedent's gross estate.
(c) The noncitizen transfer of the property of a nonresident not a citizen is exempt from the tax imposed by this section to the extent that the property of residents is exempt from taxation under the laws of the state in which the nonresident not a citizen is domiciled; except that the following shall be subject to tax under this section:
(1) Real property having an actual situs in this State, whether or not held in a trust the corpus of which is included in a decedent's gross estate for federal estate tax purposes;
(2) A beneficial interest in a land trust that owns real property located in the State; and
(3) Tangible and intangible personal property having a situs in this State.
(d) "Situs" as used in this section means the location of a decedent's property within the meaning of section 2104 of the Internal Revenue Code, including regulations and other guidance issued thereunder, substituting "Hawaii" for "the United States". [L 2010, c 74, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-5 Tax reports; date to be filed; extensions.

§236D-5 Tax reports; date to be filed; extensions.
(a) The personal representative of every estate subject to the estate tax imposed by this chapter who is required by the laws of the United States to file a federal estate tax return shall file with the department on or before the date the federal estate tax return is required to be filed, including any extension of time for filing the federal estate tax return:
(1) A report for the estate taxes due under this chapter; and
(2) A true copy of the federal estate tax return.
(b) The person required to report and pay the federal generation-skipping transfer tax to which the federal credit applies shall file with the department on or before the date the federal generation-skipping transfer tax return is required to be filed, including any extension of time for filing the federal return:
(1) A report for the generation-skipping transfer tax due under section 236D-3.5; and
(2) A true copy of the federal generation-skipping transfer tax return.
(c) If the person required to file the return has obtained an extension of time for filing the federal return, the filing required by subsection (a) or (b) shall be extended similarly until the end of the time period granted in the extension of time for the federal return. A true copy of the extension shall be filed with the department within thirty days of issuance.
(d) No Hawaii report need be filed if the estate is not subject to the estate tax imposed by this chapter.
(e) If the estate is not subject to the estate tax imposed by this chapter, the personal representative may apply to the department for the issuance of the release provided in this chapter. The release, when issued, shall indicate that it has been determined that the estate is not subject to the estate tax and that the estate and the personal representative are free of any claim by the State for estate taxes owed under this chapter. [L 1983, c 217, pt of §1; am L 1994, c 142, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-6 Date payment due; date deemed received.

§236D-6 Date payment due; date deemed received.
(a) The taxes imposed by this chapter shall be paid to the department on or before the date the return for the taxes is required to be filed under section 236D-5.
(b) For the purposes of this chapter, the timely filing of any tax return, claim, statement, report, or other document required or authorized to be filed with, or the timeliness of any payment made to, the department and any notice required or authorized to be given by the department shall be governed by chapter 231. [L 1983, c 217, pt of §1; am L 1994, c 142, §5]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-7 Interest on amount due; extension of time to file federal return.

§236D-7 Interest on amount due; extension of time to file federal return.
(a) Any tax due under this chapter which is not paid by the time prescribed for the filing of the report as provided in section 236D-5, not including any extension in respect to the filing of the report or the payment of the tax, shall bear interest at the rate in section 231-39(b)(4) from the date any tax is due until paid.
(b) If the report provided for in section 236D-5 is not filed within the time periods specified, then there shall be paid, in addition to the interest provided in this section, a penalty equal to five per cent of the tax due in respect to the transfer or generation-skipping transfer for each month beyond the time periods that the report has not been filed, but no penalty so imposed shall exceed a total of twenty-five per cent of the tax.
(c) If the person required to pay the tax has obtained an extension of time for payment of the federal tax, the person may elect to extend the time for payment of the tax due under this chapter in accordance with the extension. The election shall be made by filing a true copy of the extension of time for payment with the report and the returns required under section 236D-5. [L 1983, c 217, pt of §1; am L 1994, c 142, §6]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-8 Department to issue release; final settlement of account.

§236D-8 Department to issue release; final settlement of account.
(a) The department shall issue an automatic release of estate tax liability to the personal representative when:
(1) No estate tax is imposed by this chapter and upon the receipt of a request for a release, if the release includes the sworn statement of the personal representative or agent that in fact no taxes are due; or
(2) The estate taxes due under this chapter have been paid as prescribed in section 236D-6, and the request for a release includes the sworn statement of the personal representative that in fact all taxes due have been paid.
(b) The obtaining of a release shall give to the personal representative sufficient authority to effectuate the transfer of all property composing the decedent's estate. [L 1983, c 217, pt of §1; am L 1994, c 142, §7]
Law Journals and Reviews
Is The Hawaii Estate Tax Our State's Newest Supertramp? 14 HBJ, no. 13, at 91 (2011).
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-9 Amended returns; final determination.

§236D-9 Amended returns; final determination.
(a) If an amended federal return is filed, there immediately shall be filed with the department an amended Hawaii report with a true copy of the amended federal return. If an additional tax under this chapter is required to be paid pursuant to the amended return, the person required to pay the tax shall pay the additional tax, together with interest as provided in section 236D-7, at the same time the amended return is filed, subject to any extension election under section 236D-7.
(b) Upon final determination of the federal tax due, the person, within sixty days after the determination, shall give written notice of the determination to the department in such forms as may be prescribed. If any additional tax is due under this chapter by reason of the determination, the person shall pay the tax, together with interest as provided in section 236D-7, at the same time the notice is filed, subject to any extension election under section 236D-7. [L 1983, c 217, pt of §1; am L 1994, c 142, §8]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-11 Sale of property to pay tax; creation of lien.

§236D-11 Sale of property to pay tax; creation of lien.
(a) Subject to chapter 560 and section 531-29, as applicable, a personal representative may sell so much of any property as is necessary to pay the estate taxes due under this chapter. A personal representative may sell so much of any property specifically bequeathed or devised as is 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 such part of the gross estate as 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 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 which 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, which tax lien shall attach to the proceeds. [L 1983, c 217, pt of §1; am L 1994, c 142, §9]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-12 Liability for failure to pay tax before distribution or delivery.

§236D-12 Liability for failure to pay tax before distribution or delivery.
(a) Any personal representative who distributes any property without first paying, securing another's payment of, or furnishing security for payment of the estate taxes due under this chapter is personally liable for the taxes due to the extent of the value of any property that may come or may have come into the possession of the personal representative. Security for payment of the estate taxes due under this chapter shall be in an amount equal to or greater than the value of all property that is or has come into the possession of the personal representative, as of the time the security is furnished.
(b) Any person who has the control, custody, or possession of any property and who delivers any of the property to the personal representative or legal representative of the decedent outside Hawaii without first paying, securing another's payment of, or furnishing security for payment of the estate taxes due under this chapter is liable for the taxes to the extent of the value of the property delivered. Security for payment of the estate taxes due under this chapter shall be in an amount equal to or greater than the value of all property delivered to the personal representative or legal representative of the decedent outside Hawaii by such a person.
(c) For the purpose of this section, persons do not have control, custody, or possession of a decedent's property, if they are not responsible for paying the tax due under this section such as transferees, which term includes but is not limited to stockbrokers or stock transfer agents, banks, and other depositories of checking and savings accounts, safe-deposit companies, and life insurance companies.
(d) For the purposes of this section, any person who has the control, custody, or possession of any property and who delivers any of the property to the personal representative or legal representative of the decedent may rely upon the release furnished by the department to the personal representative as evidence of compliance with the requirements of this chapter, and make such deliveries and transfers as the personal representative may direct without being liable for any estate taxes due under this chapter. [L 1983, c 217, pt of §1; am L 1984, c 248, §2; am L 1994, c 142, §10]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-13 Refund for overpayment.

§236D-13 Refund for overpayment.
Whenever the tax due under this chapter is proved to have been overpaid, the department shall refund the amount of the overpayment, together with interest at the then existing statutory rate of interest in the manner provided in section 231-23(c). No claim for refund may be initiated more than two years after the date the federal tax has been finally determined.
As to all tax payments for which a refund or credit is not authorized by this section (including, without prejudice to the generality of the foregoing, cases of unconstitutionality), the remedies provided by appeal or by section 40-35 are exclusive. [L 1983, c 217, pt of §1; am L 1994, c 19, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-15 Administration by department; action for collection of tax; appeal.

§236D-15 Administration by department; action for collection of tax; appeal.
The department may collect the taxes provided for in this chapter, including applicable interest and penalties, and shall represent this State in all matters pertaining to this chapter, either before courts or in any other manner. The department, through the attorney general, may institute proceedings for the collection of the taxes and any interest and penalties on the taxes.
The circuit court for any county which has assumed lawful jurisdiction over the property of the decedent for general probate or administration purposes under the laws of Hawaii shall have jurisdiction to hear and determine all questions in relation to the estate tax arising under this chapter. If no probate or administration proceedings have been taken out in any court of this State, the circuit court for the county in which the decedent was a resident, if the decedent was a domiciliary, or, if the decedent was a nondomiciliary, any court which has sufficient jurisdiction over the property of the decedent, the transfer of which is taxable, to issue probate or administration proceedings thereon, had the same been justified by the legal status of the property or had the same been applied for, shall have jurisdiction. Any such court first acquiring jurisdiction shall retain the same to the exclusion of every other. The tax appeal court shall have jurisdiction to hear and determine all questions in relation to the generation-skipping transfer tax arising under this chapter.
Any person aggrieved by any assessment of the tax imposed by this chapter may appeal from the assessment to a court of competent jurisdiction within the time set forth in section 235-114. The distribution of taxes paid pending the appeal shall be as provided in chapter 232. [L 1983, c 217, pt of §1; am L 1992, c 147, §4; am L 1994, c 142, §12; am L 2004, c 123, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-16 Expenses of court proceeding.

§236D-16 Expenses of court proceeding.
Whenever a circuit court certifies that there was probable cause for issuing a citation and taking proceedings under this chapter, the director of finance shall pay from the tax reserve fund provided in section 231-23(c)(2), or allow, all expenses incurred for services of citation and other lawful disbursements that have not otherwise been paid. [L 1983, c 217, pt of §1]
Revision Note
Section "231-23(c)(2)" substituted for "231-23(d)(2)" pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 14. Taxation › 236D. Estate and Transfer Tax › 236D-17 Who liable, amount.

§236D-17 Who liable, amount.
Every person who fails or refuses to perform, within a reasonable time, any and every duty required by this chapter, or who fails or refuses to make and deliver within a reasonable time any statement or record required by this chapter, shall forfeit to the State the sum of $1,000, to be recovered in an action brought by the attorney general in the name of the State. [L 1983, c 217, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236E. Estate and Generation-Skipping Transfer Tax › 236E-3 Conformance to the Internal Revenue Code; general application.

§236E-3 Conformance to the Internal Revenue Code; general application.
For all decedents dying, or transfers occurring, after December 31, 2022, 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, 2022, 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. [L 2012, c 220, pt of §1; am L 2013, c 45, §2; am L 2014, c 44, §2; am L 2015, c 23, §2; am L 2016, c 33, §3; am L 2017, c 95, §3; am L 2018, c 27, §7; am L 2019, c 69, §5; am L 2020, c 13, §4; am L 2021, c 89, §3; am L 2022, c 7, §3; am L 2023, c 56, §5]
Note
The 2017 amendment applies to decedents dying or taxable transfers occurring after December 31, 2016. L 2017, c 95, §5(2).
The 2018 amendment applies to decedents dying or taxable transfers occurring after December 31, 2017. L 2018, c 27, §15(2).
The 2019 amendment applies to decedents dying or taxable transfers occurring after December 31, 2018. L 2019, c 69, §8(2).
The 2020 amendment applies to decedents dying or taxable transfers occurring after December 31, 2019. L 2020, c 13, §6(2).
The 2021 amendment applies to decedent dying or taxable transfers occurring after December 31, 2020. L 2021, c 89, §5(2).
The 2022 amendment applies to decedent dying or taxable transfers occurring after December 31, 2021. L 2022, c 7, §5(2).
The 2023 amendment applies to decedents dying or taxable transfers occurring after December 31, 2022. L 2023, c 56, §7(3).
2023 Hawaii Revised Statutes › Title 14. Taxation › 236E. Estate and Generation-Skipping Transfer Tax › 236E-5 Legislative intent; application of Internal Revenue Code.

§236E-5 Legislative intent; application of Internal Revenue Code.
(a) It is the intent of this chapter, in addition to the essential purpose of raising revenue, to conform the estate and generation-skipping transfer tax law of the State as closely as possible to the Internal Revenue Code, in order to simplify the filing of returns and minimize the taxpayers' burdens in complying with the estate and generation-skipping transfer tax law. The rules and regulations, forms, and procedures adopted and established under this chapter shall conform as nearly as possible, 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. References to the following terms in the Internal Revenue Code shall have the following meanings:
"Interest at the underpayment rate" or "interest at the overpayment rate" means the interest rate set forth in section 231-39(b)(4) or section 231-23(d)(1), as the case may be.
"Secretary or his delegate" means the director of taxation or the director's duly authorized subordinates. [L 2012, c 220, pt of §1; am L 2017, c 12, §47]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236E. Estate and Generation-Skipping Transfer Tax › 236E-7 Hawaii taxable estate.

§236E-7 Hawaii taxable estate.
For the purposes of this chapter, "Hawaii taxable estate" means:
(1) For residents, the federal taxable estate under section 2051, et seq., of the Internal Revenue Code but without regard for the deduction for state death taxes paid under section 2058 of the Internal Revenue Code;
(2) For nonresidents, the federal taxable estate under section 2051, et seq., of the Internal Revenue Code, but without regard for the deduction for state death taxes paid under section 2058 of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the value of the property in the State subject to tax under this chapter, and the denominator of which is the federal gross estate; and
(3) For nonresidents not citizens, the federal taxable estate determined under section 2106 of the Internal Revenue Code, but without regard for the deduction for state death taxes paid under section 2106(a)(4) of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the value of the property with a situs in the State subject to tax under this chapter, and the denominator of which is the federal gross estate. [L 2012, c 220, pt of §1; am L 2013, c 60, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236E. Estate and Generation-Skipping Transfer Tax › 236E-8 Tax imposed; credit for tax paid other state.

§236E-8 Tax imposed; credit for tax paid other state.
(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]
Note
The 2017 amendment applies to decedents dying or taxable transfers occurring after December 31, 2016. L 2017, c 156, §3.
The 2018 amendment applies to decedents dying or taxable transfers occurring after December 31, 2017. L 2018, c 27, §15(2).
The 2019 amendment applies to decedents dying or taxable transfers occurring after December 31, 2019. L 2019, c 3, §3.
2023 Hawaii Revised Statutes › Title 14. Taxation › 236E. Estate and Generation-Skipping Transfer Tax › 236E-10 Interest on amount due; penalties.

§236E-10 Interest on amount due; penalties.
(a) Any tax due under this chapter that is not paid by the time prescribed for the filing of the return as provided in section 236E-9, not including any extension with respect to the filing of the report or the payment of the tax, shall bear interest at the rate in section 231-39(b)(4) from the date any tax is due until paid.
(b) If the return provided for in section 236E-9 is not filed within the time period specified, unless it is shown that the failure to file is due to a reasonable cause, then there shall be paid, in addition to the interest provided in this section, a penalty equal to five per cent of the tax due in respect to the transfer, or five per cent of the additional tax due in the case of a supplemental return, for each month beyond the time periods that the return has not been filed; provided that no penalty so imposed shall exceed a total of twenty-five per cent of the tax.
(c) If the Internal Revenue Service waives the penalty provided in the Internal Revenue Code for failure to timely file the federal return or the penalty for failure to timely pay the federal transfer tax liability, the waiver shall be deemed to constitute reasonable cause for the purposes of this section. [L 2012, c 220, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 236E. Estate and Generation-Skipping Transfer Tax › 236E-11 Extension of time to file return.

§236E-11 Extension of time to file return.
If a federal transfer tax return is due and the date for filing the federal return or the date for payment of the federal transfer tax is extended by the Internal Revenue Service, the filing of the return and payment of the tax imposed by this chapter shall be due on the respective dates specified by the Internal Revenue Service in granting a request for extension. If the request for extension is granted by the Internal Revenue Service, the person required to file the Hawaii transfer tax return shall file along with the return required under this chapter a copy of the request for extension showing approval of the extension by the Internal Revenue Service. If a request for extension of time to file the federal return is denied by the Internal Revenue Service, no penalty shall be due under this chapter if the return required by this chapter is filed within the time specified by the Internal Revenue Service for filing the federal return. If a request for extension of time to pay the federal transfer tax is denied by the Internal Revenue Service, no penalty shall be due under this chapter if the tax is paid within the time specified by the Internal Revenue Service for paying the federal transfer tax. The extension shall be made by filing a true copy of the federal extension or extensions of time for filing or payment, or both, with the return required under section 236E-9.
If a federal transfer tax return is not due, the director of taxation may grant a reasonable extension of time for filing returns under rules as the department shall prescribe. [L 2012, c 220, pt of §1; am L 2018, c 27, §11]
Note
The 2018 amendment applies to decedents dying or taxable transfers occurring after December 31, 2017. L 2018, c 27, §15(2).