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2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-1 Definitions.

§251-1 Definitions.
As used in this chapter, unless the context otherwise requires:
"Car-sharing organization" means a rental motor vehicle lessor that operates a membership program in which:
(1) Self-service access to a fleet of vehicles is provided, with or without requiring a reservation, exclusively to members of the organization who have paid a membership fee;
(2) Members are charged a usage rate, either hourly or by the minute, for each use of a vehicle;
(3) Members are not required to enter into a separate written agreement with the organization each time the member reserves and uses a vehicle; and
(4) The average paid use period for all vehicles provided by the organization during any taxable period is six hours or less.
"Department" means the department of taxation.
"Lessor" means any person in the business of providing rental motor vehicles to the public.
"Person" has the same meaning as defined in section 237-1.
"Rental motor vehicle" or "vehicle" means every vehicle which is:
(1) Self-propelled and every vehicle which is propelled by electric power but which is not operated upon rails which is rented or leased or offered for rent or lease in this State, whether for personal or commercial use, for a period of six months or less; and
(2) Designed to carry seventeen passengers or fewer.
"Rental motor vehicle" or "vehicle" shall not include:
(1) Mopeds as defined in section 286-2;
(2) Any trucks, truck-tractors, tractor-semitrailer combinations, or truck-trailer combinations, with:
(A) A manufacturer's nominal carrying capacity of one thousand pounds or more; and
(B) A barrier or separation between the operator's compartment and the cargo area; and
(3) Cargo vans with no more than two seats, including the driver's seat; provided that vans with a recreational vehicle converter package and vans with quick release passenger seats shall not be classified as cargo vans.
"Surcharge tax" means the rental motor vehicle and tour vehicle surcharge tax established under this chapter.
"Tour vehicle" means any vehicle, including vans, minibuses, and buses used for the purpose of transporting persons for pleasure or sightseeing trips, or transporting persons to pleasure or sightseeing cruises or destinations. The term does not include any vehicle used solely for the purposes of transporting individuals to and from a place of work or a public or private school or of transporting persons with disabilities.
"Tour vehicle operator" means a person who owns, manages, or dispatches tour vehicles. [L 1991, c 263, pt of §1; am L 1992, c 77, §1 and c 126, §1; am L 2014, c 110, §3; am L 2021, c 117, §28]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-2 Rental motor vehicle and tour vehicle surcharge tax.

§251-2
Rental motor vehicle and tour vehicle surcharge tax.
(a) There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $5 a day, or any portion of a day that a rental motor vehicle is rented or leased. Beginning January 1, 2022, and each subsequent year on January 1 until December 31, 2027, the rental motor vehicle surcharge tax shall increase by $0.50. The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:
(1) The lessor is renting the vehicle to replace a vehicle of the lessee that:
(A) Is being repaired; or
(B) Has been stolen and is unrecovered or will not be repaired due to a total loss of the vehicle; and
(2) A record of the repair order, the stolen vehicle record, or total loss vehicle claim for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16.
In addition to the requirements imposed by section 251-4, a lessor shall disclose, to the department, the portion of the remittance attributed to the county in which the motor vehicle was operated under rental or lease. A peer-to-peer car-sharing program, as defined in chapter 279L, shall be subject to the tax imposed by this subsection and be subject to the other requirements of this chapter.
(b) There is levied and shall be assessed and collected each month a tour vehicle surcharge tax of:
(1) $66 for each tour vehicle used or partially used during the month that falls into the over twenty-five passenger seat category; and
(2) $16 for each tour vehicle used or partially used during the month that falls into the eight to twenty-five passenger seat category.
The tour vehicle surcharge tax shall be levied upon the tour vehicle operator. [L 1991, c 263, pt of §1; am L 1992, c 77, §2; am L 1999, c 223, §1; am L 2005, c 67, §1; am L 2006, c 142, §2; am L 2007, c 258, §2; am L 2008, c 226, §13; am L 2011, c 104, §3; am L 2018, c 215, §3; am L 2019, c 174, §2; am L 2021, c 237, §1; am L 2022, c 77, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-2.5 Car-sharing vehicle surcharge tax.

§251-2.5 Car-sharing vehicle surcharge tax.
(a) There is levied and shall be assessed and collected a car-sharing vehicle surcharge tax of 25 cents per half-hour, or any portion of a half-hour, that a rental motor vehicle is rented or leased by a car-sharing organization; provided that for each rental of six hours or more, the tax shall be assessed in a manner provided in section 251-2. The car-sharing vehicle surcharge tax shall be levied upon the car-sharing organization.
(b) An organization that qualifies as a car-sharing organization as defined in section 251-1, that is registered with the department pursuant to section 251-3, and that is subject to the surcharges imposed by this section shall not be subject to the surcharges imposed by section 251-2; provided that any organization registered with the department pursuant to section 251-3 shall be subject to at least one surcharge imposed by this chapter. [L 2014, c 110, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-3 Certificate of registration.

§251-3 Certificate of registration.
(a) Each person as a condition precedent to engaging or continuing in the business of providing rental motor vehicles to the public, engaging or continuing in the tour vehicle operator business, engaging or continuing in a car-sharing organization business, or engaging or continuing in a peer-to-peer car-sharing program as defined in section 279L-1 shall register with the director. A person required to so register shall make a one-time payment of $20, upon receipt of which the director shall issue a certificate of registration in such form as the director determines, attesting that the registration has been made. The registration shall not be transferable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. The registration, or in lieu thereof a notice stating where the registration may be inspected and examined, shall at all times be conspicuously displayed at the place for which it is issued.
(b) The registration shall be effective until canceled in writing. Any application for the reissuance of a previously canceled registration identification number shall be regarded as a new registration application and shall be subject to the payment of the one-time registration fee in subsection (a). The director may revoke or cancel any certificate of registration issued under this chapter for cause as provided by rule under chapter 91.
(c) If the registration fee is paid, the department shall not refuse to issue a registration or revoke or cancel a registration for the exercise of a privilege protected by the First Amendment of the Constitution of the United States, or for the carrying on of interstate or foreign commerce, or for any privilege the exercise of which, under the Constitution and laws of the United States, cannot be restrained on account of nonpayment of taxes, nor shall section 251-13 be invoked to restrain the exercise of such a privilege, or the carrying on of such commerce.
(d) Any person who may lawfully be required by the State, and who is required by this chapter, to register as a condition precedent to engaging or continuing in the business of providing rental motor vehicles or tour vehicles to the public subject to taxation under this chapter, who engages or continues in the business without registering in conformity with this chapter, shall be guilty of a misdemeanor. Any officer or director of a corporation who permits, aids, or abets the corporation to engage or continue in business without registering in conformity with this chapter, shall likewise be guilty of a misdemeanor. The penalty for the misdemeanors shall be that prescribed by section 231-34 for violation of that section. [L 1991, c 263, pt of §1; am L 2014, c 110, §5; am L 2022, c 77, §3]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-5 Remittances.

§251-5 Remittances.
All remittances of surcharge taxes imposed under this chapter shall be made by cash, bank draft, cashier's check, money order, or certificate of deposit in the form and manner prescribed by the department. The department shall deposit the moneys into the state treasury to the credit of the state highway fund. [L 1991, c 263, pt of §1; am L 2011, c 104, § §4, 8; am L 2018, c 215, §4; am L 2019, c 174, §3; am L 2021, c 117, §29]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-6 Annual return.

§251-6
Annual return.
On or before the twentieth day of the fourth month following the close of the taxable year, every person who has become liable for the payment of the surcharge taxes under this chapter during the preceding tax year shall file a return summarizing the person's liability under this chapter for the year, in such form as the director prescribes. The person shall transmit with the return a remittance covering the residue of the surcharge tax chargeable to the person, if any, to the office of the appropriate state district tax assessor designated in section 251-7. The return shall be signed by the person, if made by an individual, or by the president, vice-president, secretary, or treasurer of a corporation, if made on behalf of a corporation. If made on behalf of a partnership, firm, society, unincorporated association, group, hui, joint adventure, joint stock company, corporation, trust estate, decedent's estate, trust, or other entity, any individual delegated by the entity shall sign the same on behalf of the person. If for any reason it is not practicable for the individual person to sign the return, it may be done by any duly authorized agent. The department, for good cause shown, may extend the time for making the return on the application of any person and grant such reasonable additional time within which to make the return as the department may deem advisable.
Section 232-2 applies to the annual return, but not to a monthly, quarterly, or semiannual return. [L 1991, c 263, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-7 Filing of returns.

§251-7 Filing of returns.
All monthly, quarterly, semiannual, and annual returns shall be transmitted in the form and manner prescribed by the department. [L 1991, c 263, pt of §1; am L 2021, c 117, §30]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-9 Overpayment; refunds.

§251-9 Overpayment; refunds.
Upon application by a person, if the director determines that any surcharge tax, interest, or penalty has been paid more than once, or has been erroneously or illegally collected or computed, the surcharge tax, interest, or penalty shall be credited by the director on any surcharge taxes then due from the person under this chapter. The director shall refund the balance to the person or the person's successors, administrators, executors, or assigns in accordance with section 231-23(d). No credit or refund shall be allowed for any surcharge tax imposed by this chapter, unless a claim for the credit or refund is filed as follows:
(1) If an annual return is timely filed, or is filed within three years after the date prescribed for filing the annual return, then the credit or refund shall be claimed within three years after the date the annual return was filed or the date prescribed for filing the annual return, whichever is later.
(2) If an annual return is not filed, or is filed more than three years after the date prescribed for filing the annual return, a claim for credit or refund shall be filed within:
(A) Three years after the payment of the tax; or
(B) Three years after the date prescribed for the filing of the annual return,
whichever is later.
Paragraphs (1) and (2) are mutually exclusive. The preceding limitation shall not apply to a credit or refund pursuant to an appeal, provided for in section 251-10.
As to all tax payments for which a refund or credit is not authorized by this section (including, without prejudice to the generality of the foregoing, cases of unconstitutionality), the remedies provided by appeal or by section 40-35 are exclusive. [L 1991, c 263, pt of §1; am L 1994, c 19, §5]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-10 Appeals.

§251-10 Appeals.
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. [L 1991, c 263, pt of §1; am L 2000, c 199, §10; am L 2004, c 123, §10]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-11 Records to be kept; examination.

§251-11 Records to be kept; examination.
Every person shall keep in the English language within the State, and preserve for a period of three years, suitable records relating to the surcharge tax levied and assessed under this chapter, and such other books, records of account, and invoices as may be required by the department of taxation, and all such books, operators records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof. [L 1991, c 263, pt of §1; am L 1995, c 92, §19]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-12 Disclosure of returns unlawful; destruction of returns.

§251-12 Disclosure of returns unlawful; destruction of returns.
(a) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the auditor or the auditor's agent with regard to tax return information obtained pursuant to section 23-5(a), to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any tax return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for surcharge tax purposes only the lessor or tour vehicle operator, the lessor's or tour vehicle operator's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in the case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in the case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person in paragraphs (1) through (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) through (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory;
(11) The Multistate Tax Commission or its authorized representative; and
(12) Members of a limited liability company.
Any violation of this subsection shall be a class C felony. Nothing in this subsection shall prohibit the publication of statistics that are classified to prevent the identification of particular reports or returns and the items of the reports or returns.
(b) The department may destroy the monthly, quarterly, or semiannual returns filed pursuant to section 251-4, or any of them, upon the expiration of three years after the end of the calendar or fiscal year in which the surcharge taxes so returned accrued. [L 1991, c 263, pt of §1; am L 1997, c 178, §10; am L 2014, c 136, §7]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-13 Collection by suit; injunction.

§251-13
Collection by suit; injunction.
The department may collect surcharge taxes due and unpaid under this chapter, together with all accrued penalties, by action in assumpsit or other appropriate proceedings in the circuit court of the judicial circuit in which the surcharge taxes arose. After delinquency shall have continued for sixty days, or if any person lawfully required so to do under this chapter shall fail to apply for and secure a certificate as provided by this chapter for a period of sixty days after the first date when the person was required under this chapter to secure the certificate, the department may proceed in the circuit court of the judicial circuit in which the rental motor vehicles were leased or the tour vehicles were hired, to obtain an injunction restraining the further furnishing of services until full payment shall have been made of all surcharge taxes, penalties, and interest due under this chapter, or until the certificate is secured, or both, as the circumstances of the case may require. [L 1991, c 263, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-14 Application of surcharge tax.

§251-14 Application of surcharge tax.
The surcharge tax imposed by this chapter shall be in addition to any other taxes imposed by any other laws of the State, except as otherwise specifically provided in this chapter; provided that if it be held by any court of competent jurisdiction that the surcharge tax imposed by this chapter may not legally be imposed in addition to any other tax or taxes imposed by any other law or laws with respect to the same property or the use thereof, then this chapter shall be deemed not to apply to such property and the use thereof under the specific circumstances, but the other laws shall be given full effect with respect to such property and use. [L 1991, c 263, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 251. Rental Motor Vehicle, Tour Vehicle, and Car-Sharing Vehicle Surcharge Tax › 251-15 Administration and enforcement; rules.

§251-15 Administration and enforcement; rules.
(a) The director shall administer and enforce this chapter in respect of:
(1) The examination of books and records and of lessors, tour vehicle operators, and other persons;
(2) Procedure and powers upon failure or refusal by a person to make a return or proper return; and
(3) The general administration of this chapter.
All of the provisions of chapter 237 not inconsistent with this chapter and which may appropriately be applied to the taxes, persons, circumstances, and situations involved in this chapter, including (without prejudice to the generality of the foregoing) provisions as to penalties and interest, and provisions granting administrative powers to the department, and provisions for the assessment, levy, and collection of taxes, shall be applicable to the surcharge taxes imposed by this chapter, and to the assessment, levy, and collection thereof.
(b) The director may adopt, amend, or repeal rules under chapter 91 to carry out this chapter. [L 1991, c 263, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255. Multistate Tax Compact › 255-2 Representation on multistate commission.

§255-2 Representation on multistate commission.
The director of taxation, or the director's designee, shall represent the State on the Multistate Tax Commission. The attorney general, or the attorney general's designee, shall act as an alternate for the director of taxation. [L 1968, c 30, §3; gen ch 1993]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-2 Definitions.

§255D-2 Definitions.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Agreement" means the streamlined sales and use tax agreement as adopted.
"Certified automated system" means software certified jointly by the states that are signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction.
"Certified service provider" means an agent who performs all of the seller's sales tax functions and is certified jointly by the states that are signatories to the agreement.
"Department" means the department of taxation.
"Person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity.
"Sales tax" means the general excise tax levied under chapter 237.
"Seller" means any person making sales, leases, or rentals of personal property or services.
"State" means any state of the United States and the District of Columbia.
"Use tax" means the use tax levied under chapter 238. [L 2003, c 173, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-3 Authority to participate in multistate negotiations.

§255D-3 Authority to participate in multistate negotiations.
For the purposes of reviewing or amending the agreement embodying the simplification requirements in section 255D-6, the State may enter into multistate discussions. For purposes of these discussions, the State shall be represented by the department. [L 2003, c 173, pt of §2; am L Sp 2005, c 3, §3]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-4 Authority to enter agreement.

§255D-4 Authority to enter agreement.
The department with the concurrence of the legislature may enter into the streamlined sales and use tax agreement with one or more states to simplify and modernize sales and use tax administration to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. In furtherance of the agreement, the department may act jointly with other states that are members of the agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers. The department may take other actions reasonably required to implement this section. Other actions authorized by this section include but are not limited to the adoption of rules not subject to chapter 91 and the joint procurement not subject to chapter 103D, with other member states, of goods and services in furtherance of the cooperative agreement. The department, or the department's designee, may represent this State before the other states that are signatories to the agreement. [L 2003, c 173, pt of §2; am L 2004, c 216, §31; am L 2005, c 22, §8; am L Sp 2005, c 3, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-5 Relationship to state law.

§255D-5 Relationship to state law.
No provision of the agreement authorized by this chapter in whole or part invalidates or amends any provision of the law of this State. Adoption of the agreement by this State does not amend or modify any law of this State. Implementation of any condition of the agreement in this State, whether adopted before, at, or after membership of this State in the agreement, must be by the action of this State. [L 2003, c 173, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-6 Agreement requirements.

§255D-6 Agreement requirements.
The department shall not enter into the streamlined sales and use tax agreement unless the agreement requires each state to abide by the following requirements:
(1) The agreement must set restrictions to limit over time the number of state tax rates;
(2) The agreement must establish uniform standards for:
(A) The sourcing of transactions to taxing jurisdictions;
(B) The administration of exempt sales; and
(C) Sales and use tax returns and remittances;
(3) The agreement must provide a central, electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states;
(4) The agreement must provide that registration with the central registration system and the collection of sales and use taxes in the signatory states will not be used as a factor in determining whether the seller has a nexus with a state for any tax;
(5) The agreement must provide for reduction of the burdens of complying with local sales and use taxes by:
(A) Restricting variances between the state and local tax bases;
(B) Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions;
(C) Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes; and
(D) Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions;
(6) The agreement must outline any monetary allowances that are to be provided by the states to sellers or certified service providers;
(7) The agreement must allow for a joint public and private sector study of the compliance cost for sellers and certified service providers to collect sales and use taxes for state and local governments under various levels of complexity to be completed by July 1, 2004;
(8) The agreement must require each state to certify compliance with the terms of the agreement before joining and to maintain compliance, under the laws of the member state, with all provisions of the agreement while a member;
(9) The agreement must require each state to adopt a uniform policy for certified service providers that protects the privacy of consumers and maintains the confidentiality of tax information; and
(10) The agreement must provide for the appointment of an advisory council of private sector representatives and an advisory council of nonmember state representatives to consult with in the administration of the agreement. [L 2003, c 173, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-7 Cooperating sovereigns.

§255D-7 Cooperating sovereigns.
The agreement authorized by this chapter is an accord among individual cooperating sovereigns in furtherance of their governmental functions. The agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state. [L 2003, c 173, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-8 Limited binding and beneficial effect.

§255D-8 Limited binding and beneficial effect.
(a) The agreement authorized by this chapter binds and inures only to the benefit of this State and the other member states. No person, other than a member state, is an intended beneficiary of the agreement. Any benefit to a person other than a state is established by the law of this State and the other member states and not by the terms of the agreement.
(b) Consistent with subsection (a), no person shall have any cause of action or defense under the agreement or by virtue of this State's approval of the agreement. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, other instrumentality of this State, or any political subdivision of this State on the ground that the action or inaction is inconsistent with the agreement.
(c) No law of this State, or the application thereof, shall be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement. [L 2003, c 173, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 255D. Hawaii Simplified Sales and Use Tax Administration Act › 255D-9 Seller and third party liability.

§255D-9 Seller and third party liability.
[See Note below.]
(a) A certified service provider is the agent of a seller, with whom the certified service provider has contracted for the collection and remittance of sales and use taxes. As the seller's agent, the certified service provider is liable for the sales and use taxes due each member state on all sales transactions it processes for the seller except as provided in this section.
(b) A seller that contracts with a certified service provider is not liable to the State for sales or use taxes due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud. In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on the transactions processed by the certified service provider. A seller is subject to audit for transactions not processed by the certified service provider. The member states acting jointly may perform a system check of the seller and review the seller's procedures to determine if the certified service provider's system is functioning properly and the extent to which the seller's transactions are being processed by the certified service provider.
(c) A person that provides a certified automated system is responsible for the proper functioning of that system and is liable to the State for underpayments of tax attributable to errors in the functioning of the certified automated system. A seller that uses a certified automated system remains responsible and is liable to the State for reporting and remitting tax.
(d) A seller that has a proprietary system for determining the amount of tax due on transactions and has signed an agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard. [L 2003, c 173, pt of §2]
Note
Section effective when State becomes a member of the streamlined sales and use tax agreement. L 2003, c 173, §4.
2023 Hawaii Revised Statutes › Title 14. Taxation › 256. College Savings Program › 256-1 Definitions.

§256-1 Definitions.
As used in this chapter, unless the context otherwise requires:
"Account" or "college account" means an individual savings account established in accordance with this chapter.
"Account owner" means the individual who enters into a tuition savings agreement pursuant to this chapter and as defined under the proposed income tax regulations, sections 1.529-1 to 1.529-6 or the final regulations relating to section 529 of the Internal Revenue Code of 1986, as amended, whichever is applicable, including any amendments or supplements thereto.
"Designated beneficiary" means a designated beneficiary as defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.
"Eligible educational institution" means an institution defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.
"Financial organization" means an organization authorized to do business in the State of Hawaii that is:
(1) Certified as an insurer by the insurance commissioner;
(2) Licensed or chartered as a financial institution by the commissioner of financial institutions;
(3) Chartered by an agency of the federal government;
(4) Subject to the jurisdiction and regulation of the securities and exchange commission of the federal government; or
(5) Any other entity otherwise authorized to act in this State as a trustee pursuant to the provisions of the Employee Retirement Income Security Act of 1974, as may be amended from time to time.
"Management contract" means the contract executed by the director of finance and a financial organization selected to act as a depository and manager of the program.
"Member of the family" means a family member as defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.
"Nonqualified withdrawal" means a withdrawal from an account that is not:
(1) Used for qualified higher education expenses of the designated beneficiary;
(2) Made on account of the death or disability of the designated beneficiary; or
(3) Made on the account of a scholarship (or allowance or payment described in section 135(d)(1)(B) or (C) of the Internal Revenue Code of 1986, as amended) received by the designated beneficiary, to the extent the withdrawal does not exceed the amount of the scholarship, allowance, or payment.
"Program" means the college savings program.
"Program manager" means a financial organization selected by the director of finance to act as a depository and manager of the program.
"Qualified higher education expenses" means any qualified higher education expense defined in section 529 of the Internal Revenue Code of 1986, as amended, or successor legislation.
"Qualified withdrawal" means withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account.
"Tuition savings agreement" means an agreement between the director of finance or a financial organization and the account owner. [L 1999, c 81, pt of §2; am L 2000, c 90, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256. College Savings Program › 256-2 College savings program established.

§256-2 College savings program established.
There is established the college savings program. The purpose of this program is to enable families to save for college tuition and other expenses through college accounts. The program shall provide college accounts to:
(1) Enable residents of this State and other states to benefit from the tax incentive provided for qualified state tuition programs under the Internal Revenue Code of 1986, as amended; and
(2) Attract students to public and private colleges and universities within the State. [L 1999, c 81, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256. College Savings Program › 256-5 Program limitations; college account.

§256-5 Program limitations; college account.
(a) Nothing in this chapter shall be construed to:
(1) Give any designated beneficiary any rights or legal interest with respect to an account;
(2) Guarantee that a designated beneficiary:
(A) Will be admitted to an institution of higher education; or
(B) Upon admission to an institution of higher education, will be permitted to continue to attend or will receive a degree from the institution;
(3) Create state residency for an individual merely because the individual is a designated beneficiary; or
(4) Guarantee that amounts saved pursuant to the program will be sufficient to cover the qualified higher education expenses of a designated beneficiary.
(b) Nothing in this chapter shall create or be construed to create any obligation of the director of finance, the State, or any agency or instrumentality of the State to guarantee for the benefit of any account owner or designated beneficiary with respect to:
(1) The rate of interest or other return on any account;
(2) The payment of interest or other return on any account; or
(3) The repayment of the principal of any account.
The director of finance shall provide by rule that every tuition savings agreement, contract, application, deposit slip, or other similar document that may be used in connection with a contribution to an account clearly indicate that the account is not insured by the State and neither the principal deposited nor the investment return is guaranteed by the State. [L 1999, c 81, pt of §2; am L 2000, c 90, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256. College Savings Program › 256-6 College savings program trust fund.

§256-6 College savings program trust fund.
(a) There is established the college savings program trust fund. The director of finance shall have custody of the fund. All payments from the fund shall be made in accordance with this chapter.
(b) The fund shall consist of a trust account and an operating account. The trust account shall include amounts received by the college savings program pursuant to tuition savings agreements, administrative charges, fees, and all other amounts received by the program from other sources, and interest and investment income earned by the fund. The director of finance, from time to time, shall make transfers from the trust account to the operating account for the immediate payment of obligations under tuition savings agreements, operating expenses, and administrative costs of the college savings program.
(c) The director of finance, as trustee, shall invest the assets of the fund in securities that constitute legal investments under state laws relating to the investment of trust fund assets by trust companies, including those authorized by article 8 of chapter 412. Trust fund assets shall be kept separate and shall not be commingled with other assets, except as provided in this chapter. The director of finance may enter into contracts to provide for investment advice and management, custodial services, and other professional services for the administration and investment of the program.
(d) The director of finance shall provide for the administration of the fund, including maintaining participant records and accounts, and providing annual audited reports. The director of finance may enter into contracts for administrative services, including reports.
(e) All administrative fees, costs, and expenses, including investment fees and expenses, shall be paid from the operating account of the fund and, notwithstanding any other law to the contrary, may be made without appropriation or allotment. [L 1999, c 81, pt of §2; am L 2000, c 90, §5]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256. College Savings Program › 256-7 Tax reporting.

§256-7 Tax reporting.
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. [L 1999, c 81, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256B. Hawaii ABLE Savings Program › 256B-1 Definitions.

§256B-1 Definitions.
As used in this chapter, unless the context otherwise requires:
"Account" or "ABLE savings account" means an individual savings account established in accordance with this chapter.
"Account owner" means the person who enters into a savings agreement pursuant to this chapter.
"Designated beneficiary" means a resident of the State whose qualified disability expenses may be paid from the account.
"Director" means the director of finance.
"Eligible individual" means an individual who is entitled to benefits based on blindness or disability under title 42 United States Code section 401 et seq. or title 42 United States Code section 1381 et seq., as amended, and for whom blindness or disability occurred before the date on which the individual attained the age of twenty-six, or an individual who filed for the taxable year, a disability certification with and to the satisfaction of the Secretary.
"Financial organization" means an organization authorized to do business in the State that is:
(1) Licensed or chartered by the insurance commissioner;
(2) Licensed or chartered by the commissioner of financial institutions;
(3) Chartered by an agency of the federal government; or
(4) Subject to the jurisdiction and regulation of the federal Securities and Exchange Commission.
"Management contract" means the contract executed by the director of finance and a financial organization selected to act as a depository and manager of the program.
"Member of the family" has the same meaning defined in section 529A of the Internal Revenue Code of 1986, as amended.
"Nonqualified withdrawal" means a withdrawal from an account that is not:
(1) A qualified withdrawal; or
(2) A rollover distribution.
"Program" means the Hawaii ABLE savings program established under this chapter.
"Program manager" means a financial organization selected by the director of finance to act as a depository and manager of the program.
"Qualified disability expense" means any qualified disability expense included in section 529A of the Internal Revenue Code of 1986, as amended.
"Qualified withdrawal" means a withdrawal from an account to pay the qualified disability expenses of the designated beneficiary of the account.
"Rollover distribution" means a rollover distribution as defined in section 529A of the Internal Revenue Code of 1986, as amended.
"Savings agreement" means an agreement between the program manager or the director of finance and the account owner.
"Secretary" means the Secretary of the United States Department of the Treasury. [L 2015, c 206, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256B. Hawaii ABLE Savings Program › 256B-2 Hawaii ABLE savings program; establishment.

§256B-2 Hawaii ABLE savings program; establishment.
The director of finance shall establish the Hawaii ABLE savings program to provide for individual savings accounts that empower individuals with a disability and their families to save private funds to support the individual with a disability. [L 2015, c 206, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256B. Hawaii ABLE Savings Program › 256B-6 Account funds.

§256B-6 Account funds.
Moneys in an ABLE savings account:
(1) Shall be exempt from attachment, execution, or garnishment as provided by section 651-124; and
(2) May be claimed by the medicaid plan subject to limitations imposed by the Secretary. [L 2015, c 206, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256B. Hawaii ABLE Savings Program › 256B-7 Accounts not guaranteed by the State.

§256B-7 Accounts not guaranteed by the State.
(a)
Nothing in this chapter shall create or be construed to create any obligation of the director, the State, or any agency or instrumentality of the State to guarantee for the benefit of any account owner or designated beneficiary with respect to the:
(1) Return of principal;
(2) Rate of interest or other return on any account; or
(3) Payment of interest or other return on any account.
(b) The director shall adopt rules to provide that every contract, application, or other similar document that may be used in connection with opening an account clearly indicates that the account is not insured by the State and that the principal deposited and the investment return are not guaranteed by the State. [L 2015, c 206, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 256B. Hawaii ABLE Savings Program › 256B-8 Hawaii ABLE savings program trust fund.

§256B-8 Hawaii ABLE savings program trust fund.
(a) There is established the Hawaii ABLE savings program trust fund within the treasury of the State. The fund shall consist of moneys received from an ABLE savings program manager, any governmental or private grants, and any general fund appropriations for the program.
(b) The fund shall be used if the director elects to accept deposits from contributors, rather than have deposits sent directly to the program manager. The fund shall consist of any moneys deposited by contributors in accordance with this chapter which are not deposited directly with the program manager.
(c) All interest derived from the deposit and investment of moneys in the savings program trust fund shall be credited to the fund. At the end of any fiscal year, all unexpended and unencumbered moneys in the savings program trust fund shall remain in the savings program trust fund and shall not be credited or transferred to the general fund or any other funds.
(d) All expenses incurred by the director in developing and administering the ABLE savings program shall be payable from the Hawaii ABLE savings program trust fund. [L 2015, c 206, pt of §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 257. Individual Development Accounts › 257-2 Eligible individuals.

§257-2 Eligible individuals.
(a) The income of the household of the individual development account holder shall not exceed eighty per cent of the area household median income.
(b) The individual shall enter into an individual development account agreement with a fiduciary organization. [L 1999, c 160, pt of §25]