reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-59 Decedents.

§235-59 Decedents.
In respect of a decedent, the determination of the income of the taxable period in which falls the date of the decedent's death, and the determination of the income of the estate and of the persons who acquire rights from the decedent or by reason of the decedent's death, shall be governed by the Internal Revenue Code. [L Sp 1957, c 1, pt of §2; Supp, §121-14; HRS §235-59; gen ch 1985]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-63 Statements to employees

§235-63 Statements to employees
. (a) Every employer required to deduct and withhold any tax on the wages of any employee shall furnish to each employee in respect of the employee's employment during the calendar year, on or before January 31 of the succeeding year, or if the employee's employment is terminated before the close of a calendar year, within thirty days after the date of receipt of a written request from the employee if the thirty-day period ends before January 31, a written statement, showing the period covered by the statement, the wages paid by the employer to the employee during the period covered by the statement, and the amount of the tax deducted and withheld or paid in respect of those wages. Each employer required to furnish a statement under this section shall file on or before January 31 following the close of the calendar year a duplicate copy of each statement. The department of taxation may grant to any employer a reasonable extension of time, not in excess of sixty days, with respect to any statement required by this section to be furnished to an employee or filed, and may by regulation provide for the furnishing or filing of statements at other times and containing other information as may be required for the administration of this chapter. The department shall prescribe the form of the statement required by this section and may adopt any federal form appropriate for the purpose.
(b) In regard to the statement required under subsection (a), an employer that:
(1) Wilfully fails to furnish the statement to the employee by the prescribed due date;
(2) Fails to file the statement with the department by the prescribed due date; or
(3) Fails to electronically file the statement with the department if the employer is required to file electronically under section 231-8.5;
shall be subject to a penalty of $25 per failure; provided that the penalty imposed under this section shall not exceed $50 per employee. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-18; HRS §235-63; am L 1980, c 236, §1; am L 1983, c 88, §3; gen ch 1985; am L 2021, c 115, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-64 Taxes withheld by employer held in trust; employer's liability.

§235-64 Taxes withheld by employer held in trust; employer's liability.
(a) All taxes withheld by any employer under section 235-61 shall be held in trust by the employer for the State and for the payment of the same to the collector in the manner and at the time required by this chapter. If any employer fails, neglects, or refuses to deduct and withhold from the wages paid to an employee, or to pay over, the amount of tax required, the employer shall be liable to pay to the State the amount of the tax. An employer may recover from an employee any amount which the employer should have withheld but did not withhold from the employee's wages, if the employer has been required to pay and has paid the amount to the State out of the employer's own funds pursuant to this section.
(b) In addition to the liability imposed by subsection (a), if any employer fails, neglects, or refuses to deduct and withhold from the wages paid to any employee, or to pay over, the amount of tax required, any person excluding those who have only ministerial duties, who is under a duty to deduct and withhold or to pay over, the amount of tax required, and who wilfully fails to perform such duty, shall be liable to the State for the amount of the tax. The liability may be assessed and collected in the same manner as the liability imposed by subsection (a); provided that two or more persons may be assessed under this subsection jointly or in the alternative, but the tax shall be collected only once with respect to the same wages. The voluntary or involuntary dissolution of the employer, or the withdrawal and surrender of its right to engage in business within this State shall not discharge the liability hereby imposed. [L Sp 1957, c 1, pt of §2; am L 1959, c 277, §11; Supp, §121-19; HRS §235-64; am L 1974, c 11, §1; gen ch 1985; am L 1990, c 82, §1; am L 2002, c 153, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-64.2 Withholdings by partnerships, estates, and trusts.

[ §235-64.2] Withholdings by partnerships, estates, and trusts.
Partnerships, estates, and trusts shall withhold an amount equal to the highest marginal tax rate applicable to a nonresident taxpayer multiplied by the amount of the taxpayer's distributive share of income attributable to the State reflected on the partnership's, estate's, and trust's return for the taxable period. All amounts withheld shall be paid to the department of taxation in a manner that the department may prescribe. Withholding shall not be required to be submitted by a publicly traded partnership, as defined by section 7704(b) of the Internal Revenue Code, otherwise in compliance with this section. A publicly traded partnership shall file an annual information return reporting the name, address, taxpayer identification number, and other information requested by the department of taxation of each unit holder with income sourced to the State. L 2019, c 232, §1
Note
Section applies to taxable years beginning after December 31, 2018. L 2019, c 232, §4.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-66 Further withholdings at source; crediting of withheld taxes.

§235-66 Further withholdings at source; crediting of withheld taxes.
(a) The department of taxation by regulation, may require the deduction and withholding of tax from any gross income or adjusted gross income of a nonresident, in order to collect the tax imposed by this chapter on the nonresident.
(b) Income upon which any tax has been withheld at the source under sections 235-61 to 235-64.2, or under regulations adopted pursuant to subsection (a), shall be included in the return of the recipient of such income, but any amount of tax so withheld shall be credited against the amount of income tax as computed in the return, and if in excess of the tax due for the taxable year shall be refunded as provided in section 235-110. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-21; HRS §235-66; am L 2019, c 232, §2]
Note
The 2019 amendment applies to taxable years beginning after December 31, 2018. L 2019, c 232, §4.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-67 Indemnity of withholder.

§235-67 Indemnity of withholder.
Every person required to withhold a tax under sections 235-61 to 235-64, or under regulations adopted pursuant to section 235-66(a), is made liable for such tax and is relieved of liability for or upon the claim or demand of any other person for the amount of any payments to the department of taxation made in accordance with such sections. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-22; HRS §235-67]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-69 Voluntary deduction and withholding of state income tax from unemployment compensation.

§235-69
Voluntary deduction and withholding of state income tax from unemployment compensation.
An individual receiving unemployment compensation benefits under chapter 383 may elect to have state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of five per cent in accordance with section 383-163.6. [L 1996, c 157, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-71.5 Alternative tax for corporations.

§235-71.5 Alternative tax for corporations.
Section 1201 (with respect to alternative tax for corporations) of the Internal Revenue Code of 1986, as amended as of December 31, 1996, shall be operative for the purposes of this chapter and shall be applied as set forth in this section. If for any taxable year a corporation, regulated investment company, or real estate investment trust has a net capital gain, then, in lieu of the tax imposed by section 235-71, there is hereby imposed a tax (if such tax is less than the tax imposed under section 235-71) which shall consist of the sum of:
(1) A tax computed on the taxable income reduced by the amount of the net capital gain, at the rates and in the manner as if this section had not been enacted, plus
(2) The sum of:
(A) 3.08 per cent of the lesser of:
(i) The net capital gain determined by including only the gain or loss which is properly taken into account for the portion of the taxable year before April 1, 1987 (i.e., the amount in paragraph (1)), or
(ii) The net capital gain for the taxable year, plus
(B) 4 per cent of the excess (if any) of:
(i) The net capital gain for the taxable year, over
(ii) The amount of the net capital gain taken into account under subparagraph (A). [L 1988, c 10, §1(1); am L 1998, c 113, §3]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-72 Corporations carrying on business in partnership.

§235-72 Corporations carrying on business in partnership.
Corporations carrying on business in partnership shall be treated in the same manner by this chapter as they are treated by the Internal Revenue Code. [L Sp 1957, c 1, pt of §2; Supp, §121-24; HRS §235-72; am L 1978, c 173, §2(14)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-91.5 Income tax credits; ordering of credit claims.

§235-91.5 Income tax credits; ordering of credit claims.
Notwithstanding any other law to the contrary providing for the use of an income tax credit under this chapter, in the offsetting of a taxpayer's income tax liability, tax credits that may be refunded or paid to the taxpayer who has no income tax liability shall be used first, followed by nonrefundable tax credits that may be used as credit against taxes in subsequent years until exhausted. [L 2010, c 21, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-92 Returns, who shall make.

§235-92 Returns, who shall make.
For each taxable year, returns shall be made by the following persons to the department of taxation in such form and manner as it shall prescribe:
(1) Every person doing business in the State during the taxable year, whether or not the person derives any taxable income therefrom. As used in this paragraph "doing business" includes all activities engaged in or caused to be engaged in with the object of gain or economic benefit, direct or indirect, except personal services performed as an employee under the direction and control of an employer. Every person receiving rents from property owned in the State is classed as "doing business" and shall make a return whether or not the person derives taxable income therefrom.
(2) Every corporation having for the taxable year gross income subject to taxation under this chapter; provided that an affiliated group of domestic corporations may make and file a consolidated return for the taxable year in lieu of separate tax returns in the manner and to the extent, so far as applicable, set forth in sections 1501 through 1505 and 1552 of the Internal Revenue Code of 1954, as amended.
(3) Every individual, estate, or trust having for the taxable year gross income subject to taxation under this chapter, except as exempted from the filing of a return by regulations of the department.
The department may by regulation excuse the filing of a return by an individual, estate, or trust in cases not coming within paragraph (1), where the gross income and exemptions are such that no tax is expected to accrue under this chapter, or are such that substantially all the tax will have been collected through tax withholdings or at the source. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-26; HRS §235-92; am L 1968, c 24, §2; am L 1978, c 173, §2(17); gen ch 1985]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-93 Joint returns.

§235-93 Joint returns.
(a) A husband and wife, having that status for purposes of the Internal Revenue Code and entitled to make a joint federal return for the taxable year, may make a single return jointly of taxes under this chapter for the taxable year. In that case the tax shall be computed on their aggregate income as provided in section 235-52, and the liability with respect to the tax shall be joint and several. For purposes of this chapter "aggregate income" means the income of both spouses without regard to source in the State.
(b) If an individual has filed a separate return for a taxable year for which a joint return could have been made by the taxpayer and the taxpayer's spouse, an election thereafter to make a joint return for the taxable year shall be made only upon compliance with rules of the department of taxation, which may limit the election and prescribe the terms and provisions applicable in such cases as nearly as may be in conformity with the Internal Revenue Code.
(c) The filing of a joint return after the individual has filed a separate return without full payment of the amount shown as tax on the joint return may be elected; provided all other requirements for the filing of a joint return under this section and the rules of the department are complied with. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-27; HRS §235-93; am L 1974, c 9, §2; am L 1982, c 22, §1(4); am L 1997, c 297, §4]
Law Journals and Reviews
Tax Justice and Same-Sex Domestic Partner Health Benefits: An Analysis of the Tax Equity For Health Plan Beneficiaries Act. 32 UH L. Rev. 73 (2009).
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-93.4 Effect of civil union.

§235-93.4 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, §4]
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.
Definitions of "marriage" and "spouse" under the federal Defense of Marriage Act, Pub. L. No. 104-199, 110 Stat. 2419, may preclude civil union partners of the same gender under the State's Civil Union Act from filing jointly for federal income tax purposes, but they do not preclude civil union partners from filing joint tax returns for Hawaii income tax purposes. Att. Gen. Op. 11-2.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-94 Returns by agent, guardian, etc.; liability of fiduciaries.

§235-94 Returns by agent, guardian, etc.; liability of fiduciaries.
(a) Returns of decedents. If an individual is deceased, the return of the individual required under section 235-92 shall be made by the individual's personal representative or other person charged with the care of property of the decedent.
(b) Persons under a disability. If an individual is unable to make a return required under section 235-92 or 235-97, the return of the individual shall be made by a duly authorized agent, the individual's committee, guardian, fiduciary, or other person charged with the care of the person or property of the individual. The preceding sentence shall not apply in the case of a receiver appointed by authority of law in possession of only a part of the property of an individual.
(c) Receivers, trustees, and assignees for corporations. In a case where a receiver, trustee in bankruptcy, or assignee, by order of a court of competent jurisdiction, by operation of law, or otherwise, has possession of or holds title to all or substantially all the property or business of a corporation, whether or not the property or business is being operated, such receiver, trustee, or assignee shall make the return of income for the corporation in the same manner and form as corporations are required to make such returns.
(d) Returns of estates and trusts. Returns of an estate or a trust shall be made by the fiduciary thereof.
(e) Joint fiduciaries. Under such regulations as the department of taxation may prescribe, a return made by one of two or more joint fiduciaries shall be sufficient compliance with the requirement of this section. A return made pursuant to this subsection shall contain a statement that the fiduciary has sufficient knowledge of the affairs of the person for whom the return is made to enable the fiduciary to make the return, and the return is, to the best of the fiduciary's knowledge and belief, true and correct.
(f) Liability of fiduciaries. A tax imposed upon a fiduciary shall be a charge upon the property held by the fiduciary in that capacity. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-28; HRS §235-94; am L 1976, c 200, pt of §1; gen ch 1985]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-95 Partnership returns.

§235-95 Partnership returns.
Every partnership shall make a return for each taxable year upon forms prescribed by the department of taxation, itemizing its gross income and allowable deductions and including the names and addresses of the persons who would be entitled to share in the income if distributed and the amount of each distributive share. The return shall be authenticated by the signature of any one of the partners, under the penalties provided by section 231-36, and the fact that a partner's name is signed on the return shall be prima facie evidence that such partner is authorized to sign the return on behalf of the partnership. All provisions of this chapter relating to returns shall be applicable to partnership returns except as specifically otherwise stated in this section. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-29; HRS §235-95; am L 1995, c 92, §9]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-96 Returns by persons making payments.

§235-96 Returns by persons making payments.
By duly promulgated regulations the department of taxation may require that any individual, partnership, corporation, joint stock company, association, insurance company, or other person, being a resident or having a place of business in this State, in whatever capacity acting, including lessees or mortgagors of real and personal property, fiduciaries, employers, and all officers and employees of the State or of any political subdivision thereof, having the control, receipt, custody, disposal, or payment of any annuity or interest on deposits or funds held in trust, including taxable income from endowment policies, other interest (except interest coupons payable to bearer), dividends, wages, rentals, royalties, premiums, or other emoluments, gains, profits, and income, paid or payable during any year to any person, shall, on such date or dates as the department shall from time to time designate, make a return to the department furnishing the information required by the regulations. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-30; HRS §235-96]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-96.5 Returns relating to unemployment.

§235-96.5 Returns relating to unemployment.
(a) The state department of labor and industrial relations shall submit a return to the department of taxation according to the forms or rules prescribed by the director of taxation setting forth the aggregate amounts of payments of unemployment compensation and the name and address of the individual to whom paid under chapters 383 to 385.
(b) The department of labor and industrial relations shall furnish to each individual whose name is set forth in such return a written statement showing:
(1) The name and address of the department of labor and industrial relations; and
(2) The aggregate amount of payments to the individual as shown on such return.
The written statement required by this subsection shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection (a) was made. No statement shall be required to be furnished to any individual under this subsection if the aggregate amount of payments to such individual shown on the return made under subsection (a) is less than $10. [L 1979, c 62, §2(4)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-98 Returns; form, verification and authentication, time of filing.

§235-98 Returns; form, verification and authentication, time of filing.
Returns shall be in such form as the department of taxation may prescribe from time to time and shall be verified by written declarations that the statements therein made are subject to the penalties prescribed in section 231-36. Corporate returns shall be authenticated by the signature of the president, vice president, treasurer, assistant treasurer, chief accounting officer, or any other officer duly authorized so to act, under the penalties prescribed by section 231-36. The fact that an individual's name is signed on the corporation return shall be prima facie evidence that the individual is authorized to sign the return on behalf of the corporation.
The department may grant a reasonable extension of time for filing returns under such rules as it shall prescribe. Except as otherwise provided by statute for cases in which exceptional circumstances require additional time, including cases of persons who are outside the United States, no extension of time for filing returns shall be for more than six months in order to expedite the timely determination of tax liability and the timely remission of taxes. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-32; HRS §235-98; am L 1995, c 92, §10; am L 2003, c 14, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-99 Returns; place for filing.

§235-99 Returns; place for filing.
Returns shall be filed in the form and manner prescribed by the department. [L Sp 1957, c 1, pt of §2; Supp, §121-33; am L 1967, c 37, §1; HRS §235-99; am L 2021, c 117, §9]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-100 Persons in military service.

§235-100 Persons in military service.
The collection from any person in the military service of any tax on the income of such person, whether falling due prior to or during the person's period of military service (which term, as used in this section, shall have the same meaning as in the Soldiers' and Sailors' Civil Relief Act of 1940, as amended), shall be deferred for a period extending not more than six months after the termination of the person's period of military service if such person's ability to pay such tax is materially impaired by reason of such service. No interest on any amount of tax, collection of which is deferred for any period under this section, and no penalty for nonpayment of such amount during such period, shall accrue for such period of deferment by reason of such nonpayment. The running of any statute of limitations against the collection of such tax by distraint or otherwise shall be suspended for the period of military service of any individual the collection of whose tax is deferred under this section, and for an additional period of nine months beginning with the day following the period of military service. [L Sp 1957, c 1, pt of §2; Supp, §121-34; HRS §235-100; gen ch 1985]
Cross References
Civil relief for state military force, see §657D-43.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-100.5 Abatement of income taxes of members of armed forces on death.

§235-100.5 Abatement of income taxes of members of armed forces on death.
Section 692 (with respect to income taxes of members of armed forces on death) of the Internal Revenue Code shall be operative for the purposes of this chapter and the department shall have the authority to abate income taxes as provided in section 692.
For the purposes of this section "member of the Armed Forces of the United States" shall have the same meaning as provided by section 7701(a)(15) of the Internal Revenue Code. [L 1991, c 208, §3]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-101 Federal returns and assessments, when copies are required.

§235-101 Federal returns and assessments, when copies are required.
(a) In prescribing the form of return the department of taxation may require that a person who is required to file a federal income tax return include in the person's return a reconciliation of the return with the person's federal return, or that the person furnish with the return and as a part thereof a copy of the federal return.
(b) It shall be the duty of every person who is required by section 235-92 to make a return, to report to the department, as to any taxable year governed by this chapter, if:
(1) The amount of taxable income as returned to the United States is changed, corrected, or adjusted by an officer of the United States or other competent authority;
(2) A change in taxable income results from a renegotiation of a contract with the United States or a subcontract thereunder;
(3) A recomputation of the income tax imposed by the United States under the Internal Revenue Code results from any cause; or
(4) An amended income tax return is made to the United States.
The report shall be made within ninety days after the change, correction, adjustment, or recomputation is finally determined or the amended return is filed, as the case may be. The report required by this subsection shall be made in the form of an amendment of the person's return filed under this chapter. The amended return shall be accompanied by a copy of the document issued by the United States under paragraphs (1) to (3). The statutory period for the assessment of any deficiency or the determination of any refund attributable to this report shall not expire before the expiration of one year from the date the department is notified by the taxpayer or the Internal Revenue Service, whichever is earlier, of the report in writing. Before the expiration of this one-year period, the department and the taxpayer may agree in writing to the extension of this period. The period so agreed upon may be further extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
(c) Whenever, in the opinion of the department, it is necessary to examine any federal income tax return of any taxpayer or any determination, assessment, or report related thereto, the department may compel the taxpayer to produce for inspection a copy of any federal return, copies of all statements and schedules in support thereof, and copies of all determinations, assessments, and reports related thereto. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-35; HRS §235-101; am L 1978, c 173, §2(18); gen ch 1985; am L 1989, c 18, §1; am L 1993, c 31, §1; am L 2017, c 12, §45]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-102 Records and special returns.

§235-102 Records and special returns.
(a) Records. Every person liable to any tax imposed by this chapter or for the collection or deduction thereof at source, shall keep full, complete, regular, and accurate books of account in which all the person's transactions shall be entered in regular order; provided that the director of taxation may, by regulation, provide for the keeping of simpler accounts in cases where, by reason of the smallness of the income or otherwise, undue hardship or expense will be caused by the keeping of full books of account. All books of account required to be kept by this chapter shall be preserved for a period of three years, except that the director may, in writing, consent to their destruction within such period or may require that they be kept longer.
(b) Special returns and statements. Whenever it is necessary, in the judgment of the director, the director may require any taxpayer, or person liable for the collection or deduction of tax at source, by notice served upon the taxpayer or other person, to make such returns or render such signed statements as the director deems sufficient to show whether or not the taxpayer or other person is liable under this chapter. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §4(a); Supp, §121-36; HRS §235-102; am L 1969, c 274, §1; gen ch 1985]
Case Notes
Cited: 33 H. 766 (1936).
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-102.6 Refund splitting.

§235-102.6 Refund splitting.
(a) Any individual taxpayer required to make a return under this chapter shall be entitled to direct the deposit of an income tax refund into a maximum of three checking or savings accounts at a financial institution; provided that a taxpayer designating the direct deposit shall have electronically filed the taxpayer's return for federal and state income taxes and made a similar direct deposit electronic designation to the same checking or savings accounts on the electronic return.
(b) The department of taxation shall be authorized to modify and revise its returns and computer systems to carry out the purposes of this section. [L 2008, c 202, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-104 Penalties.

§235-104 Penalties.
Penalties and interest shall be added to and become part of the tax, when and as provided by sections 231-39 and 235-97. The penalties and interest provided by section 231-39 shall apply to employers as well as taxpayers. [L Sp 1957, c 1, pt of §2; Supp, §121-38; HRS §235-104]
Case Notes
When penalty applied. 33 H. 766 (1936).
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-105 Failure to keep records, render returns, or make reports by responsible persons.

§235-105 Failure to keep records, render returns, or make reports by responsible persons.
The penalties provided by sections 231-34, 231-35, and 231-36 shall apply to any person, whether acting as principal, agent, officer, or director for oneself, itself, or another person and shall apply to each single violation. These penalties shall be in addition to other penalties provided by law. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-39; HRS §235-105; gen ch 1985; am L 1995, c 92, §11]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-107 Procedure upon failure to file return.

§235-107 Procedure upon failure to file return.
If any taxpayer or employer liable to make and file a return under this chapter fails, neglects, or refuses to make and file a return as required within the time prescribed, or declines to authenticate a return if made, the department of taxation shall make a return for the taxpayer or employer from the best information obtainable and shall levy and assess against the taxpayer or employer the tax upon the amount of taxable income, or the tax required to be withheld from wages and paid over, as shown by such return, to which shall be added the penalties and interest provided by section 231-39. The assessment shall be presumed to be correct until and unless, upon an appeal duly taken as provided in this chapter, the contrary shall be clearly proved by the taxpayer or employer and the burden of proof upon appeal shall be upon the taxpayer or employer to disprove the correctness of the assessment. Notice of the assessment shall be given, and an appeal therefrom may be taken, in the manner and within the time provided in section 235-108(b) and section 235-114. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-41; HRS §235-107]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-108 Audit of return; procedure; additional taxes.

§235-108 Audit of return; procedure; additional taxes.
(a) Audit. The director of taxation or a responsible person designated by the director to act in the premises for the purpose of verification or audit of a return made by the taxpayer or employer, or for the purpose of making a return where none has been made, is authorized and empowered to examine all account books, bank books, bank statements, records, vouchers, copies of federal tax returns, and any and all other documents and evidences having any relevancy to the determination of the income or wages as required to be returned under this chapter, and the director may employ the director's powers under section 231-7 for such purposes.
(b) Additional taxes. If the department of taxation discovers from the examination of the return or otherwise that income, or the liability of an employer in respect of wages, or any portion thereof, has not been assessed, it may assess the same and give notice to the taxpayer or employer of the assessment, and the taxpayer or employer shall thereupon have an opportunity within thirty days to confer with the department as to the proposed assessment. After the expiration of thirty days from such notification the department shall assess the income of the taxpayer, or the liability of the employer in respect of wages, or any portion thereof which it believes has not heretofore been assessed, and shall give notice to the taxpayer or employer of the amount of the tax and interest and penalties if any, and the amount thereof shall be paid within twenty days after the date the notice was mailed, properly addressed to the taxpayer or employer at the taxpayer's or employer's last known address or place of business. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-42; HRS §235-108; gen ch 1985]
Case Notes
Assessor not bound to take return as true. 16 H. 796 (1905).
Method of computing depreciation not reflective of income. 18 H. 530 (1908).
Reassessment proper when income in previous year unreported. 28 H. 261 (1925).
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-109 Jeopardy assessments, security for payment, etc.

§235-109 Jeopardy assessments, security for payment, etc.
Section 231-24 shall apply to the taxes imposed by this chapter, both in respect of taxpayers and employers. [L Sp 1957, c 1, pt of §2; Supp, §121-43; HRS §235-109]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-110 Credits and refunds.

§235-110 Credits and refunds.
(a) If the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or not on the basis of installments, exceeds the amount determined to be the correct amount of the tax, the amount of the credit shall be refunded in the manner provided in section 231-23(c). Within the meaning of this subsection, each amount of tax deducted and withheld from a taxpayer's wages is an installment of taxes paid by the taxpayer. A refund or credit shall be made to an employer only to the extent that the amount of overpayment claimed by the employer as a credit or refund was not deducted and withheld by the employer.
(b) This section does not apply in the case of a payment made pursuant to an assessment by the department of taxation under section 235-107 or 235-108(b). No refund or overpayment credit may be had under this section in any event unless the original payment of the tax was due to the law having been interpreted or applied in respect of the taxpayer concerned differently than in respect of the taxpayers generally. As to all tax payments for which a refund or credit is not authorized by this section (including without prejudice to the generality of the foregoing cases of unconstitutionality) the remedies provided by appeal or under section 40-35 are exclusive. However, nothing in this subsection shall be deemed applicable to a credit or refund authorized by sections 235-55, 235-66, or 235-71, or resulting from the tax as returned being less than the tax as estimated; in any of these cases a credit or refund is authorized even though the tax for the taxable year remains subject to determination by the department and assessment as provided by law.
(c) Any refund earned under this section shall be made in the manner provided in section 231-23(c). [L Sp 1957, c 1, pt of §2; am L 1959, c 277, §13; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §4(b), (c), (d); Supp, §121-44; HRS §235-110]
Revision Note
In subsections (a) and (c), "231-23(c)" substituted for "231-23(d)" pursuant to §23G-15.
Attorney General Opinions
Levy on unclaimed warrants by Internal Revenue Service for delinquent federal taxes should be honored. Att. Gen. Op. 62-4.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-110.51 Technology infrastructure renovation tax credit.

§235-110.51 Technology infrastructure renovation tax credit.
(a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the credit shall be four per cent of the renovation costs incurred during the taxable year for each commercial building located in Hawaii.
(c) In the case of a partnership, S corporation, estate, trust, or any developer of a commercial building, the tax credit allowable is for renovation costs incurred by the entity for the taxable year. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined pursuant to section 235-110.7(a).
(d) If a deduction is taken under section 179 (with respect to election to expense depreciable business assets) of the Internal Revenue Code, no tax credit shall be allowed for that portion of the renovation cost for which the deduction is taken.
(e) The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed. In the alternative, the taxpayer shall treat the amount of the credit allowable and claimed as a taxable income item for the taxable year in which it is properly recognized under the method of accounting used to compute taxable income.
(f) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year.
(g) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability may be carried forward until exhausted.
(h) The tax credit allowed under this section shall not be available for taxable years beginning after December 31, 2010.
(i) As used in this section:
"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.
"Renovation costs" means costs incurred after December 31, 2000, to plan, design, install, construct, and purchase technology-enabled infrastructure equipment to provide a commercial building with technology-enabled infrastructure.
"Technology-enabled infrastructure" means:
(1) High speed telecommunications systems that provide Internet access, direct satellite communications access, and videoconferencing facilities;
(2) Physical security systems that identify and verify valid entry to secure spaces, detect invalid entry or entry attempts, and monitor activity in these spaces;
(3) Environmental systems to include heating, ventilation, air conditioning, fire detection and suppression, and other life safety systems; and
(4) Backup and emergency electric power systems.
(j) No taxpayer that claims a credit under this section shall claim any other credit under this chapter. [L 2001, c 221, §2; am L 2004, c 215, §7]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-110.6 Fuel tax credit for commercial fishers.

§235-110.6 Fuel tax credit for commercial fishers.
(a) Each principal operator of a commercial fishing vessel who files an individual or corporate net income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual or corporate net income tax.
(b) The tax credit shall be an amount equal to the fuel taxes imposed under section 243-4(a) and paid by the principal operator during the taxable year.
(c) The tax credit claimed under this section by the principal operator shall be deductible from the principal operator's individual or corporate income tax liability, if any, for the tax year in which the credit is properly claimed; provided that a husband and wife filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credit to which they would have been entitled had a joint return been filed. If the tax credit claimed by the principal operator under this section exceeds the amount of the income tax payments due from the principal operator, the excess of credit over payments due shall be refunded to the principal operator from the state highway fund; provided that the tax credit properly claimed by a principal operator who has no income tax liability shall be paid to the principal operator from the state highway fund; and provided further no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.
(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
(e) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.
(f) Claims for the tax credit under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed.
(g) As used in this section:
(1) "Commercial fishing vessel" means any water vessel which is used to catch or process fish or transport fish loaded on the high seas.
(2) "Principal operator" means any individual or corporate resident taxpayer who derives at least fifty-one per cent of the taxpayer's gross annual income from commercial fishing operations. [L 1981, c 210, §1; am L 2010, c 192, §27]
Revision Note
In subsection (e), "231-23(c)(1)" substituted for "231-23(d)(1)" pursuant to §23G-15.
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-112 Time for assessment of deficiency attributable to gain upon conversion.

§235-112 Time for assessment of deficiency attributable to gain upon conversion.
(a) If a taxpayer has made the election provided in section 1033(a)(2)(A) of the Internal Revenue Code, the rules stated in this section apply.
(b) The statutory period for the assessment of any deficiency, for any taxable year in which is realized any part of the gain on the conversion which is the subject of the election referred to in subsection (a) of this section, attributable to such gain, shall not expire prior to the expiration of three years from the date the department of taxation is notified by the taxpayer (in such manner as the department has prescribed or may prescribe) of the replacement of the converted property or of an intention not to replace, and such deficiency may be assessed at any time before the expiration of this three-year period notwithstanding any other provision which would otherwise prevent such assessment.
(c) If the property or stock purchased as a replacement for converted property was purchased before the beginning of the last taxable year in which any part of the gain upon such conversion is realized, any deficiency, to the extent resulting from the election referred to in subsection (a) of this section, for any taxable year ending before such last taxable year may be assessed, notwithstanding any other provision which would otherwise prevent such assessment, at any time before the expiration of the period within which a deficiency for such last taxable year may be assessed. [L 1959, c 277, pt of §14; am L Sp 1959 2d, c 1, §16; Supp, §121-45.1; HRS §235-112; am L 1979, c 62, §2(13)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-113 Time for assessment of deficiency attributable to gain upon sale of a residence.

§235-113 Time for assessment of deficiency attributable to gain upon sale of a residence.
(a) If after December 31, 1957, a taxpayer during a taxable year sells at a gain property used by the taxpayer as the taxpayer's principal residence, the rules stated in this section apply.
(b) The statutory period for the assessment of any deficiency attributable to any part of the gain referred to in subsection (a) of this section shall not expire before the expiration of three years from the date the department of taxation is notified by the taxpayer (in such manner as the department has prescribed or may prescribe) of the matters set out in subsection (c) of this section, and such deficiency may be assessed at any time before the expiration of the three-year period notwithstanding any other provision which would otherwise prevent such assessment.
(c) The notice referred to in subsection (b) of this section shall inform the department of:
(1) The taxpayer's cost of purchasing the new residence which the taxpayer claims results in nonrecognition of any part of the gain referred to in subsection (a) of this section, or
(2) The taxpayer's intention not to purchase a new residence within the period specified in section 1034(a) of the Internal Revenue Code, or
(3) A failure to make such purchase within such period. [L 1959, c 277, pt of §14; am L Sp 1959 2d, c 1, §16; Supp, §121-45.2; HRS §235-113; gen ch 1985]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-115 Assessments, etc., prima facie proof.

§235-115 Assessments, etc., prima facie proof.
The effect of the notices of assessments and records prepared by or under the authority of the department of taxation shall be as set forth in sections 231-20 and 235-107. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §16; Supp, §121-47; HRS §235-115]
2023 Hawaii Revised Statutes › Title 14. Taxation › 235. Income Tax Law › 235-116 Disclosure of returns unlawful; penalty.

§235-116 Disclosure of returns unlawful; penalty.
All tax returns and return information required to be filed under this chapter shall be confidential, including any copy of any portion of a federal return that may be attached to a state tax return, or any information reflected in the copy of the federal return. 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 make known intentionally information imparted by any income tax return or estimate made under sections 235-92, 235-94, 235-95, and 235-97 or wilfully to permit any income tax return or estimate so made or copy thereof to be seen or examined by any person other than the taxpayer or the taxpayer's authorized agent, persons duly authorized by the State in connection with their official duties, the Multistate Tax Commission or the authorized representative thereof, except as otherwise provided by law. Any offense against the foregoing provisions shall be punishable as a class C felony. [L Sp 1957, c 1, pt of §2; Supp, §121-48; HRS §235-116; am L 1974, c 139, §3; am L 1978, c 172, §1; gen ch 1985; am L 2014, c 136, §4]