reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-26 Extraterritorial enforcement of tax laws.

§231-26 Extraterritorial enforcement of tax laws.
(a) The courts of the State shall recognize and enforce the liability for taxes lawfully imposed by the laws of any state which extends a like comity, whether by statute or case law, in respect of the liability for taxes lawfully imposed by the laws of this State. Should a claim be made in the state courts for taxes by a state whose highest court has not yet passed upon the question of enforcing extraterritorial revenue laws, the courts of the State shall enforce such claims until such time as the highest court of that state prohibits the enforcement of extraterritorial revenue laws.
(b) Any and all authorized officials of a state entitled to enforce its tax claims within the state courts may bring action in the courts of this State for the collection of the taxes. The certificate of the secretary of state of such state, or of the nearest equivalent official, that such officials have the authority to collect the taxes sought to be collected by the action shall be conclusive proof of that authority.
(c) The attorney general may bring action in the name of the State, or authorize action to be brought in the name of the State, in the courts of any state to collect taxes legally due the State.
(d) The term "state" as used herein means any state, territory, or possession of the United States. The term "taxes" as herein employed shall include:
(1) Any and all tax assessments lawfully made, whether they be based upon a return or other disclosure of the taxpayer, upon the information and belief of the taxing authority, or otherwise;
(2) Any and all penalties lawfully imposed pursuant to a taxing statute; and
(3) Interest charges lawfully added to the tax liability which constitutes the subject of the action.
(e) In any case where a person owing delinquent taxes to the State has moved from the State to another state or country, is situated in another state or country, resides, or maintains a place of business in another state or country, the director, notwithstanding any other law to the contrary, by contract, may select and retain bonded collection agencies, licensed attorneys, accountants, and auditors or other persons to pursue and collect the claims of the State.
(f) At the option of the director, any contract entered into under this section may provide for compensation on:
(1) A fixed price basis;
(2) An hourly rate basis with or without a fixed cap; or
(3) A contingent fee arrangement to be specified in the contract; provided that this paragraph shall not apply to auditors and accountants.
All compensation shall be payable out of the taxes recovered for the State or from the debtor in accordance with the terms of, and up to the amounts authorized by the contract, unless otherwise determined by the director.
(g) Suits brought upon judgments shall be governed by the law relating thereto, and not by this section. [L 1949, c 311, §1(a); am L 1953, c 67, §1; RL 1955, §115-31; am L Sp 1959 2d, c 1, §16; HRS §231-26; gen ch 1985; am L 1997, c 253, §2; am L 1999, c 68, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-27 Partial payment of taxes.

§231-27 Partial payment of taxes.
Whenever a taxpayer makes a partial payment of a particular assessment of taxes, the amount received by the department of taxation shall first be credited to interest, then to penalties, and then to principal. [L 1949, c 312, §1; RL 1955, §115-32; am L Sp 1959 2d, c 1, §16; HRS §231-27]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-28 Tax clearance before procuring liquor licenses.

§231-28 Tax clearance before procuring liquor licenses.
No liquor licenses shall be issued or renewed unless the applicant therefor shall present to the issuing agency, a certificate signed by the director of taxation, showing that the applicant does not owe the State any delinquent taxes, penalties, or interest; or that the applicant has entered into and is complying with an installment plan agreement with the department of taxation for the payment of delinquent taxes in installments. [L 1949, c 352, §1; RL 1955, §115-33; am L 1963, c 82, §1; am L 1964, c 6, §2; HRS §231-28; am L 2009, c 184, §1]
Attorney General Opinions
Taxpayer's agreement to pay its delinquent taxes, pursuant to a payment schedule, does not satisfy the requirements for liquor license renewal under this section and §281-45. Att. Gen. Op. 95-1.
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-29 Joinder of party defendant when State claims tax liens.

§231-29
Joinder of party defendant when State claims tax liens.
The director of taxation (or in the case of a lien under chapter 383, the director of labor and industrial relations) may be named a party defendant in any civil action in any state court of competent jurisdiction or in the district court of the United States for the district of Hawaii, to quiet title to or for the foreclosure of a mortgage or other lien upon real or personal property on which the State has or claims a tax lien under chapters of the law under title 14 administered by the department or chapter 383; provided that the jurisdiction conferred by this section shall be limited and shall not operate as a consent by the State to be sued as to its claim of title to or liens and encumbrances on real and personal property other than the liens aforementioned. Service upon the director shall be made as provided by the rules of court. In any action contemplated under this section, the director may ask, by way of affirmative relief, for the foreclosure of the aforementioned state tax liens, but in the absence of such request for affirmative relief, upon any foreclosure sale the property shall be sold subject to the tax liens. Nothing in this section shall preclude the director from asking for such other and further relief as might have been claimed by intervention in the action. [L 1953, c 187, §1; RL 1955, §115-34; am L 1957, c 185, §4; am L Sp 1959 2d, c 1, §16; HRS §231-29; am L 1973, c 133, §1; am L 1985, c 16, §6; am L 1986, c 340, §6; am L 1991, c 263, §9; am L 1995, c 66, §9]
Cross References
Service by mail, see §1-28.
Rules of Court
Service, see HRCP rule 4(d)(5).
As to pleading, see HRCP rules 7, 8, 12.
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-30 Unknown or nonresident delinquents; procedure to collect taxes from.

§231-30 Unknown or nonresident delinquents; procedure to collect taxes from.
Notwithstanding section 604-7(c):
(1) Unknown persons. In all cases where taxes assessed to persons unknown are delinquent and unpaid when due, action may be brought by the department of taxation in the district court of the circuit in which the assessment was made and the defendant may be named as unknown. In any such case, it shall be a good and sufficient service of summons, binding on all parties in interest, if under the order of the district court the title and the substance of the action and summons, including a return day not less than three weeks from the date of the issuance of such summons, and calling on all parties in interest to appear and defend, shall be published once a week for three consecutive weeks in some newspaper of general circulation in the State, and the district courts are given jurisdiction to order the service. In the summons and in the notice published, a brief description of the property assessed shall be given. Any judgment entered against the defendant shall be enforced only against the property for which the tax was assessed, unless the defendant has appeared in the action and defended on the merits, in which case the defendant shall be liable to a personal judgment with respect to the claim so defended.
(2) Nonresident delinquents. Where taxes assessed to nonresidents of the taxation district are delinquent and unpaid when due, service of summons may be made in any part of the State, or by exercise by the district court of the powers conferred on circuit courts with respect to defendants who cannot be served with process within the State, with the same effect as if the action had been brought in the circuit court. [L 1932 2d, c 40, §70; RL 1935, §1964; RL 1945, §5132; RL 1955, §115-35; am L Sp 1959 2d, c 1, §16; am L 1967, c 37, §1; HRS §231-30; am L 1973, c 133, §2; gen ch 1985]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-31 Nonresidents engaged in business, etc., service of process on, designation of agent for service of process.

§231-31 Nonresidents engaged in business, etc., service of process on, designation of agent for service of process.
Every nonresident individual who, jointly, severally, or jointly and severally, is subject to a tax upon the gross or net income from, or sales of, an occupation, trade, or business carried on in the State, in whole or in part, or upon the carrying on of the occupation, trade, or business, or upon the use or keeping for use of property therein, shall file with the department of taxation in the form and manner prescribed by the department, the name and address of a person residing within the State upon whom process may be served, and in default of the designation, and if the nonresident individual cannot be found in the State, service of process in any action for the collection of the taxes may be made on any manager, superintendent, or other person in charge, employed in the carrying on of the occupation, trade, or business, with like effect as if the person so served had been designated by the nonresident as the nonresident's agent for such purpose; provided that nothing therein shall preclude the service of process in any other manner provided by law. [L 1953, c 67, §2; RL 1955, §115-36; am L Sp 1959 2d, c 1, §16; am L 1967, c 37, §1; HRS §231-31; gen ch 1985; am L 2021, c 117, §4]
Rules of Court
Service, see HRCP rule 4.
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-32 Records of delinquent taxes, uncollectible delinquent taxes.

§231-32 Records of delinquent taxes, uncollectible delinquent taxes.
The department of taxation shall prepare and maintain, open to public inspection, a complete record of the amounts of taxes assessed in each district that have become delinquent with the name of the delinquent taxpayer in each case, but it shall not be necessary to periodically compute on the records the amount of penalties and interest upon delinquent taxes.
The department, from time to time, may prepare lists of all delinquent taxes that in its judgment are uncollectible. Taxes that the department finds to be uncollectible shall be entered in a special record and be deleted from the other books kept by the department. The department shall then be released from any further duty to collect these taxes. No account shall be deleted unless the department finds that there is reasonable cause to delete the account, considering factors such as the financial condition of the taxpayer, inability to locate the taxpayer, costs of collection against the amount of tax owed, health of the taxpayer, and future income prospects of the taxpayer. Any items written off may be transferred back to the delinquent tax roll if the department finds that the alleged facts as previously presented to it were not true or that the items are in fact collectible. [L 1932 2d, c 40, §68; RL 1935, §1962; am L 1937, c 203, §1; am L 1939, c 182, §1; am L 1941, c 254, §1; RL 1945, §5133; am L 1951, c 133, §3; RL 1955, §115-37; am L Sp 1959 2d, c 1, §16; am L 1967, c 37, §1; HRS §231-32; am L 2013, c 33, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-34 Attempt to evade or defeat tax.

Note
Part heading amended by L 1995, c 92, §3.
§231-34 Attempt to evade or defeat tax.
Any person who wilfully attempts in any manner to evade or defeat any tax imposed under title 14, or its payment, in addition to other penalties provided by law, shall be guilty of a class C felony and, upon conviction, shall be subject to one or any combination of the following:
(1) A fine of not more than $100,000;
(2) Imprisonment of not more than five years; or
(3) Probation;
provided that a corporation shall be fined not more than $500,000. [L 1943, c 4, §4; RL 1945, §5134; RL 1955, §115-38; am L Sp 1959 2d, c 1, §16; HRS §231-34; am L 1995, c 92, §4; am L 1999, c 303, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-35 Wilful failure to file return, supply information, or secure a license.

§231-35 Wilful failure to file return, supply information, or secure a license.
Any person required to make a return, make a report, keep any records, supply any information, or secure any license required under title 14, who wilfully fails to make the return, make the report, keep the records, supply the information, or secure the license, at the time or times required by law, shall in addition to other penalties provided by law, be guilty of a misdemeanor and upon conviction, shall be subject to one or any combination of the following:
(1) A fine of not more than $25,000;
(2) Imprisonment of not more than one year; or
(3) Probation;
provided that a corporation shall be fined not more than $100,000. [L 1932 2d, c 40, §13; RL 1935, §1912; am imp L 1943, c 4, §4; RL 1945, §5135; RL 1955, §115-39; HRS §231-35; gen ch 1985; am L 1995, c 92, §5; am L 1996, c 54, §2; am L 1999, c 303, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-36 False and fraudulent statements; aiding and abetting.

§231-36 False and fraudulent statements; aiding and abetting.
(a) Any person who wilfully makes and subscribes any return, statement, or other document required to be made under title 14, except chapter 238, which contains or is verified by a written declaration that it is true and correct as to every material matter, and which the person does not believe to be true and correct as to every material matter shall be guilty of a class C felony and, upon conviction, shall be subject to one or any combination of the following:
(1) A fine of not more than $100,000;
(2) Imprisonment of not more than three years; or
(3) Probation;
provided that a corporation shall be fined not more than $500,000; and provided further that, if the person wilfully makes and subscribes any return, statement, or other document required to be made under chapter 238, which contains or is verified by a written declaration that it is true and correct as to every material matter and which the person does not believe to be true and correct, then the person shall be guilty of a misdemeanor and, upon conviction, shall be subject to one or any combination of the following:
(1) A fine of not more than $2,000;
(2) Imprisonment of not more than one year; or
(3) Probation.
(b) Any person who wilfully aids or assists in, or procures, counsels, or advises the preparation or presentation of any tax return, affidavit, claim, or other document required to be made under title 14, which is fraudulent or is false as to any material matter, regardless of whether the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim, or document shall be guilty of a class C felony and, upon conviction, shall be subject to one or any combination of the following:
(1) A fine of not more than $100,000;
(2) Imprisonment of not more than three years; or
(3) Probation;
provided that a corporation shall be fined not more than $500,000. [L 1932 2d, c 40, §14; RL 1935, §1902; RL 1945, §5136; RL 1955, §115-40; HRS §231-36; am L 1995, c 92, §6; am L 1998, c 103, §1; am L 1999, c 303, §3]
Case Notes
Where, pursuant to §231-40, the Cheek interpretation of the wilfulness requirement--that a jury must be permitted to consider evidence of a defendant's good faith belief that defendant's conduct did not violate the tax laws, even if that belief was not objectively reasonable, in determining whether defendant acted wilfully--was adopted and applied in construing subsection (a), the trial court erred in excluding defendant's exhibit pursuant to HRE rules 401 and 403 on the grounds that defendant's analysis of the tax laws was irrelevant and that evidence of defendant's legal theories would confuse the jury. 119 H. 60 (App.), 193 P.3d 1260 (2008).
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-36.4 Wilful failure to collect and pay over tax.

§231-36.4 Wilful failure to collect and pay over tax.
Any person required to collect, account for, and pay over any tax imposed by title 14, who wilfully fails to collect or truthfully account for and pay over such tax shall be guilty of a class C felony, in addition to other penalties provided by law and, upon conviction, shall be subject to one or any combination of the following:
(1) A fine of not more than $100,000;
(2) Imprisonment of not more than five years; or
(3) Probation;
provided that a corporation shall be fined not more than $500,000. [L 2009, c 166, §21]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-36.6 Substantial understatements or misstatements of amounts; penalty.

§231-36.6 Substantial understatements or misstatements of amounts; penalty.
(a) There shall be added to the tax an amount equal to twenty per cent of the portion of any underpayment that is attributable to any substantial understatement of any tax in a taxable year. The penalty under this section shall be in addition to any other penalty assessable by law.
(b) Except as provided under subsection (c), there is a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the greater of:
(1) Ten per cent of the tax required to be shown on the return for the taxable year; or
(2) $1,500.
(c) In the case of a corporation other than a corporation taxable under subchapter S of the Internal Revenue Code, there is a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the greater of:
(1) Ten per cent of the tax required to be shown on the return for the taxable year; or
(2) $30,000.
(d) The amount of any understatement shall be reduced by that portion of the understatement that is attributable to:
(1) The tax treatment of any item by the taxpayer if there is or was substantial authority for such treatment; or
(2) Any item if the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return and there is a reasonable basis, as defined under section 231-36.8, for the tax treatment by the taxpayer.
The reduction in this subsection shall not apply to any item attributable to a tax shelter as described in section 231-36.7.
(e) This section shall be construed in accordance with regulations and judicial interpretations given to section 6662 of the Internal Revenue Code.
(f) For purposes of this section, "understatement" means the excess of:
(1) The amount of tax required to be shown on the return for the taxable year; over
(2) The amount of tax imposed that is shown on the return, reduced by any rebate as that term is defined by section 6211(b)(2) of the Internal Revenue Code. [L 2009, c 166, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-36.8 Erroneous claim for refund or credit.

§231-36.8 Erroneous claim for refund or credit.
(a) If a claim for refund or credit with respect to tax is made for an excessive amount, the person making the claim shall be liable for a penalty in an amount equal to twenty per cent of the excessive amount; provided that there shall be no penalty assessed where the penalty calculation under this section results in an amount of less than $400.
(b) It shall be a defense to the penalty under this section that the claim for refund or credit had a reasonable basis. A person claiming the reasonable basis defense shall have the burden of proof to demonstrate the reasonableness of the claim.
(c) This section shall be construed in accordance with regulations and judicial interpretations given to section 6676 of the Internal Revenue Code.
(d) For purposes of this section:
"Excessive amount" means the amount by which the amount of the claim for refund or credit for any taxable year exceeds the amount of the claim allowable for such taxable year.
"Reasonable basis" means a standard of care used in tax reporting that is significantly higher than not frivolous or not patently improper. A reasonable basis position will be more than arguable and based on at least one or more authorities of either state or federal tax administration. A position is considered to have a reasonable basis if a reasonable and well-informed analysis by a person knowledgeable in tax law would lead that person to conclude that the position has approximately a one-in-four, or greater, likelihood of being sustained on the merits. A reasonable basis includes innocent mistakes where the excessive amount is the result of inadvertence, mathematical error, or where otherwise defined as innocent by the director pursuant to a formal pronouncement issued without regard to chapter 91.
(e) This section shall not apply to any portion of an underpayment on which a penalty is imposed under section 231-36.6. [L 2009, c 166, §3; am L 2012, c 185, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-37 Neglect of duty, etc., misdemeanor.

§231-37 Neglect of duty, etc., misdemeanor.
Any officer of the department of taxation, the state director of finance, any person duly authorized by the director of taxation, or any police officer, on whom duties are imposed under this chapter, who wilfully fails or refuses or neglects to perform faithfully any duty or duties as required by this chapter, shall be deemed guilty of a misdemeanor. [L 1932 2d, c 40, §12; RL 1935, §1915; RL 1945, §5137; am L 1945, c 79, §7; RL 1955, §115-41; am L Sp 1959 2d, c 1, § §14, 16; am L 1963, c 114, §1; HRS §231-37; am L 1974, c 139, §2; am L 2017, c 12, §34]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-40 Interpretation.

§231-40 Interpretation.
Sections 231-34, 231-35, 231-36, and 231-36.4 shall be construed in accordance with judicial interpretations given to similar provisions of title 26 of the United States Code; consistent therewith, the term "wilfully" shall mean a voluntary, intentional violation of a known legal duty.
[L 1995, c 92, pt of §2; am L 2009, c 166, §22; am L 2011, c 43, §3]
Case Notes
Where, pursuant to this section, the Cheek interpretation of the wilfulness requirement--that a jury must be permitted to consider evidence of a defendant's good faith belief that defendant's conduct did not violate the tax laws, even if that belief was not objectively reasonable, in determining whether defendant acted wilfully--was adopted and applied in construing §231-36(a), the trial court erred in excluding defendant's exhibit pursuant to HRE rules 401 and 403 on the grounds that defendant's analysis of the tax laws was irrelevant and that evidence of defendant's legal theories would confuse the jury. 119 H. 60 (App.), 193 P.3d 1260 (2008).
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-40.5 Statute of limitations; extension for substantial omissions.

§231-40.5 Statute of limitations; extension for substantial omissions.
(a) Notwithstanding any other law to the contrary limiting the time for assessment of any tax, if a taxpayer omits an amount of:
(1) Gross income or gross proceeds of sale;
(2) Gross rental or gross rental proceeds;
(3) Price, value, or consideration paid or received for any property;
(4) Gross receipts; or
(5) Gallonage, tonnage, cigarette count, day, or other weight or measure applicable to any tax,
properly includable therein that is in excess of twenty-five per cent of the amount stated in the return, the tax may be assessed or a proceeding in court with respect to the tax without assessment may be begun without assessment, at any time within six years after the return was filed.
(b) In determining any amount omitted, there shall not be taken into account any amount that is stated in the return if such amount is disclosed in the return or in a statement attached to the return in a manner adequate to apprise the department of taxation of the nature and amount of such item.
(c) This section shall be construed in accordance with regulations and judicial interpretations given to section 6501 of the Internal Revenue Code. [L 2009, c 166, §5]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-41 Statute of limitation for criminal penalties.

§231-41 Statute of limitation for criminal penalties.
Notwithstanding any laws to the contrary, prosecutions under sections 231-34, 231-35, 231-36, and 231-36.4 shall be commenced within seven years after the commission of the offense.
[L 1995, c 92, pt of §2; am L 2009, c 166, §23; am L 2011, c 43, §4]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-51 Purpose.

§231-51 Purpose.
The purpose of sections 231-52 to 231-59 is to permit the retention of state income tax refunds of those persons who owe a debt to the State, who are delinquent in the payment of child support pursuant to section 576D-1, who have defaulted on an education loan note held by the United Student Aid Funds, Inc., who owe federal income taxes to the United States Treasurer, or who receive a medicaid overpayment subject to recovery under section 346-59.6. L 1982, c 199, pt of §1; am L 1985, c 256, §1; am L 1986, c 87, §1; am L 1988, c 199, §1; am L 1998, c 153, §1 and c 293, §3
Cross References
Civil relief for state military forces, see chapter 657D.
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-53 Setoff against refund.

§231-53 Setoff against refund.
The State, through the department of accounting and general services or the department of taxation, upon request of a claimant agency, shall set off any valid debt due and owing a claimant agency by the debtor against any debtor's refund. Any amount of the refund in excess of the amount retained to satisfy the debt shall be refunded to the debtor. [L 1982, c 199, pt of §1; am L 2019, c 97, §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-54 Hearings; appeals.

§231-54
Hearings; appeals.
At the time a setoff is identified, the debtor shall be notified by the comptroller or the director of taxation of the State's intention to apply the debtor's debt against the refund. The notice shall state that the debtor within thirty days may request a hearing before the claimant agency to contest the setoff. No issues that have been previously litigated shall be considered at the hearing. Appeals from the hearing allowed under this section shall be in accordance with chapter 91. [L 1982, c 199, pt of §1; am L 2019, c 97, §2]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-55 Finalization of setoff; credit on debt.

§231-55 Finalization of setoff; credit on debt.
Upon completion of the hearing and appeal process set out in section 231-54, or upon the debtor's failure to timely request a hearing pursuant to that section, the setoff shall become final. The amount of the setoff after deduction of any charge authorized by section 231-56 shall be credited by the claimant agency against the debtor's debt. [L 1982, c 199, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-56 Charges for setoff; credit to agency.

§231-56 Charges for setoff; credit to agency.
The State may charge the claimant agency for the cost of the setoff; provided that the charges shall not exceed the proceeds of the collection. The State may designate a single percentage to be retained from the proceeds of the setoff as a charge for cost of assistance. The net proceeds of a setoff, after deduction of any charge, shall be credited to the claimant agency's account or fund. [L 1982, c 199, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-57 Apportionment of joint refunds.

§231-57 Apportionment of joint refunds.
In the case of a setoff against a joint income tax refund, the State may make separate refunds of withheld taxes upon request by a husband or wife who has filed the joint return. The refund payable to each spouse shall be proportioned to the gross earnings of each shown by the information returns filed by the employer or otherwise shown to the satisfaction of the State. [L 1982, c 199, pt of §1]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-57.5 Notification of address and social security number of debtor parent.

§231-57.5 Notification of address and social security number of debtor parent.
The department of accounting and general services or the department of taxation shall notify the child support enforcement agency of the address and social security number of each debtor who has been subject to a setoff because of a child support debt. [L 1986, c 332, §3; am L 2019, c 97, §3]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-59 Procedure additional.

§231-59 Procedure additional.
The setoff procedure authorized by sections 231-53 to 231-57.5 is in addition to and not in substitution of any other remedy available by law. [L 1982, c 199, pt of §1; am L 2017, c 12, §35]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-61 Tax liens; co-owners' rights.

§231-61 Tax liens; co-owners' rights.
(a) If a cotenancy exists and within the period of a tax lien, all of the taxes, interest, penalties, and other additions to the tax, due and delinquent at the time of payment, are paid by a cotenant, the cotenant shall have a lien in an amount equal to the amount paid by the cotenant on the interest of any noncontributing cotenant upon recording in the bureau of conveyances, within ninety days after the cotenant's payment, a sworn notice setting forth the amount claimed, a brief description of the land affected by tax key or otherwise, sufficient to identify the land, the taxes paid and the name of the cotenant upon whose interest the lien is asserted. When a notice of the tax lien is recorded by a cotenant, the registrar shall cause the tax lien to be indexed in the general indexes of the bureau of conveyances. If the land affected is registered in the land court the notice shall also contain a reference to the number of the certificate of title of the land and shall be filed and registered in the office of the assistant registrar of the land court, and the registrar, in the registrar's capacity as assistant registrar of the land court, shall make a notation of the filing thereof on each land court certificate of title so specified.
The cotenant's lien shall have the same priority as the lien or liens of the State for the taxes paid by the cotenant, and may be enforced by an action in the nature of a suit in equity. The lien shall continue for three years after recording or registering, or until termination of the proceedings for enforcement thereof if such proceedings are begun and notice of the pendency thereof is recorded or filed and registered as provided by law, within the period.
(b) The director or the director's subordinate, in case of a state tax lien, and the creditor cotenant, in case of a cotenant's lien, at the expense of the debtor, upon payment of the amount of the lien, shall execute and deliver to the debtor a sworn satisfaction thereof, including a reference to the name of the person assessed or cotenant affected as shown in the original notice, the date of filing of the original notice, a description of the land involved, and the number of the certificate of title of the land if registered in the land court. When recorded in the bureau of conveyances or filed and registered in the office of the assistant registrar of the land court, in the case of a cotenant's lien, which contains the reference to the book and page of the original lien, the sworn satisfaction shall be entered in the general indexes of the bureau of conveyances, and if a notation of the original notice was made on any land court certificate of title the filing of the satisfaction shall also be noted on the certificate.
This section as to cotenancy shall apply, as well, in any case of ownership by more than one assessable person. [L 1989, c 14, pt of §1(1)]
Rules of Court
Filing liens, see RLC rule 62.
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-62 Tax liens; foreclosure; property.

§231-62 Tax liens; foreclosure; property.
(a) Upon enforcement or foreclosure by the State, in any manner whatsoever, of any state tax lien on real property, all state taxes of whatsoever nature and howsoever accruing and due at the time of the foreclosure sale from the taxpayer against whose property the tax lien is so enforced or foreclosed shall be satisfied as far as possible out of the proceeds of the sale remaining after payment of the:
(1) Costs and expenses of the enforcement and foreclosure, including a title search, if any;
(2) Amount of subsisting state tax liens on real property; and
(3) Amount of any recorded liens against the property,
in the order of their priority.
(b) The liens may be enforced by action of the state tax collector in the circuit court of the judicial circuit in which the property is situated. Jurisdiction is conferred upon the circuit courts to hear and determine all proceedings brought or instituted to enforce and foreclose such state tax liens, and the proceedings had before the circuit courts shall be conducted in the same manner and form as ordinary foreclosure proceedings.
(c) If the owners or claimants of the property against which a state tax lien is sought to be foreclosed are at the time without the State or cannot be served within the State, or if the owners are unknown, and the fact shall be made to appear by affidavit to the satisfaction of the court, and it shall in like manner appear prima facie that a cause of action exists against such owners or claimants or against the property described in the complaint or that such owners or claimants are necessary or proper parties to the action, the court may grant an order that the service may be made in the manner provided by sections 634-23 to 634-27. In any such case it shall not be necessary to obtain judgment and have execution issued and returned unsatisfied, before proceeding to foreclose the lien for taxes in the manner provided. [L 1989, c 14, pt of §1(1); am L 2017, c 12, §36]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-63 Tax liens; foreclosure without suit, notice.

§231-63 Tax liens; foreclosure without suit, notice.
All real property on which a lien for state taxes exists may be sold by way of foreclosure without suit by the state tax collector, and in case any lien, or any part thereof, has existed thereon for three years, shall be sold by the state tax collector at public auction to the highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and expenses due or incurred on account of the tax, lien, and sale, the surplus, if any, to be rendered to the person thereto entitled. The sale shall be held at any public place proper for sales on execution, after notice published at least once a week for at least four successive weeks immediately prior thereto in any newspaper with a general circulation of at least sixty thousand published in the State and any newspaper of general circulation published and distributed in the taxation district wherein the property to be sold is situated, if there is a newspaper published in the taxation district.
If the address of the owner is known or can be ascertained by due diligence, including an abstract of title or title search, the state tax collector shall send to each owner notice of the proposed sale by registered mail, with request for return receipt. If the address of the owner is unknown, the state tax collector shall send a notice to the owner at the owner's last known address as shown on the records of the department of taxation. The notice shall be deposited in the mail at least forty-five days prior to the date set for the sale. The notice shall also be posted for a like period in at least three conspicuous public places within such taxation district, and if the land is improved one of the three postings shall be on the land. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-64 Tax liens; registered land.

§231-64 Tax liens; registered land.
If the land has been registered in the land court, the state tax collector shall also send by registered mail a notice of the proposed sale to any person holding a mortgage or other lien registered in the office of the assistant registrar of the land court. The notice shall be sent to any such person at the person's last address as shown by the records in the office of the registrar, and shall be deposited in the mail at least forty-five days prior to the date set for the sale. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-65 Tax liens; notice, form of.

§231-65 Tax liens; notice, form of.
The notice of sale shall contain the names of the persons assessed, the names of the present owners (so far as shown by the records of the tax office and the records, if any, in the office of the assistant registrar of the land court), the character and amount of the tax, and the tax year or years, with interest, penalties, costs, expenses, and charges accrued or to accrue to the date appointed for the sale, a brief description of the property to be sold, and the time and place of sale, and shall warn the persons assessed, and all persons having or claiming to have any mortgage or other lien thereon or any legal or equitable right, title, or other interest in the property, that unless the tax, with all interest, penalties, costs, expenses, and charges accrued to the date of payment, is paid before the time of sale appointed, the property advertised for sale will be sold as advertised. The state tax collector may include in one advertisement of notice of sale notice of foreclosure upon more than one parcel of real property, whether or not owned by the same person and whether or not the liens are for the same tax year or years. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-66 Tax liens; postponement of sale, etc.

§231-66 Tax liens; postponement of sale, etc.
If at the time appointed for the sale the state tax collector deems it expedient and for the interest of all persons concerned therein to postpone the sale of any property or properties for want of purchasers, or for other sufficient cause, the state tax collector may postpone the sale from time to time, until the sale is completed, giving notice of every adjournment by a public declaration thereof at the time and place last appointed for the sale; provided that the sale of any property may be abandoned at the time first appointed or any adjourned date, if no proper bid is received sufficient to satisfy the lien, together with all interest, penalties, costs, expenses, and charges. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-67 Tax liens; tax deed; redemption.

§231-67 Tax liens; tax deed; redemption.
The state tax collector or the state tax collector's assistant, on payment of the purchase price, shall make, execute, and deliver all proper conveyances necessary in the premises and the delivery of the conveyances shall vest in the purchaser the title to the property sold; provided that the deed to the premises shall be recorded within sixty days after the sale; provided further that the taxpayer may redeem the property sold by payment to the purchaser at the sale, within one year from the date thereof, or if the deed shall not have been recorded within sixty days after the sale, then within one year from the date of recording of the deed, of the amount paid by the purchaser, together with all costs and expenses which the purchaser was required to pay, including the fee for recording the deed, and in addition thereto, interest on such amount at the rate of twelve per cent a year, but in a case of redemption more than one year after the date of sale by reason of extension of the redemption period on account of late recording of the tax deed, interest shall not be added for the extended redemption period. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-68 Tax liens; costs.

§231-68 Tax liens; costs.
The director of taxation by rule may prescribe a schedule of costs, expenses, and charges and the manner in which they shall be apportioned between the various properties offered for sale and the time at which each cost, expense, or charge is deemed to accrue. The costs, expenses, and charges shall be added to and become a part of the tax lien on the property for the last year involved in the sale or proposed sale, the tax for which is delinquent. The costs, expenses, and charges may include provision for the making of and the securing of certificates of searches of any records to furnish information to be used in or in connection with the notice of sale or tax deed, or in any case where the director deems it advisable; provided that the state tax collector shall not be required to make such searches or to cause them to be made except as provided by section 231-64 with respect to mortgages or other liens registered in the office of the assistant registrar of the land court. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-69 Tax deed as evidence.

§231-69 Tax deed as evidence.
The tax deed referred to in section 231-67 is prima facie evidence that:
(1) The property described by the deed on the date of the sale was subject to a lien or liens for state taxes, penalties, and interest in the amount stated in the deed, for the tax years therein stated, and that the state taxes, penalties, and interest were due and unpaid on the date of sale;
(2) Costs, expenses, and charges due or incurred on account of the state taxes, liens, and sale had accrued at the date of the sale in the amount stated in the deed;
(3) The person who executed the deed was the proper officer;
(4) At a proper time and place the property was sold at public auction as prescribed by law, and by the proper officer;
(5) The sale was made upon full compliance with sections 231-63 to 231-68 and all laws relating thereto, and after giving notice as required by law; and
(6) The grantee named in the deed was the person entitled to receive the conveyance. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-70 Disposition of surplus moneys.

§231-70 Disposition of surplus moneys.
(a) The officer charged with the duty of distributing the surplus arising from a tax sale under sections 231-63 to 231-68 shall pay from the surplus all state taxes, including interest and penalties, of whatsoever nature and howsoever accruing, as provided in section 231-62, and the officer may pay from the surplus the cost of a search of any records where such search is deemed advisable by the officer to ascertain the person or persons entitled to the surplus; provided that nothing in this section shall be construed to require the state tax collector to make or cause any such search to be made. If the officer is in doubt as to the person or persons entitled to the balance of the fund the officer may refuse to distribute the surplus and any claimant may sue the officer or the officer's successor in office in the circuit court in the circuit within which the property sold was situated. The officer may require the claimants to interplead, in which event the officer shall state the names of all claimants known to the officer, and shall cause them to be made parties to the action. If in the officer's opinion there may be other claimants who are unknown, the officer may apply for an order or orders joining all persons unknown having or claiming to have any legal or equitable right, title, or interest in the moneys or any part thereof or any lien or other claim with respect thereto.
(b) Any orders of the court or summons in the matter may be served as provided by law or the rules of court, and all persons having any interest in the moneys who are known, including the guardians of such of them as are under legal age or under any other legal disability (and if any one or more of them is under legal age or under other legal disability and without a guardian the court shall appoint a guardian ad litem to represent them therein) shall have notice of the action by personal service upon them. All persons having any interest in the moneys whose names are unknown or who if known do not reside within the State, or for any reason cannot be served with process within the State shall have notice of the action as provided by sections 634-23 to 634-27, except that any publication of summons shall be in at least one newspaper published in the State and having a general circulation in the circuit within which the property sold was situated, and the form of notice to be published shall provide a brief description of the property which was sold.
(c) All expenses incurred by the officer shall be met out of the surplus moneys realized from the sale. [L 1989, c 14, pt of §1(1)]
2023 Hawaii Revised Statutes › Title 14. Taxation › 231. Administration of Taxes › 231-81 Special enforcement section; created.

§231-81
Special enforcement section; created.
(a) There is created within the department of taxation the special enforcement section to carry out civil enforcement efforts as directed by the director of taxation. The director may staff the section as the exigencies of the public service may require.
(b) The special enforcement section may:
(1) Examine any sector of the State's economy;
(2) Initiate civil investigations to ensure that each taxpayer pays all taxes that the taxpayer is required to pay; and
(3) Use enforcement and education to deter and prevent non-compliance with state taxation laws.
(c) The department of taxation shall report to the legislature no later than thirty days prior to the convening of each regular session the state resources committed to implementing Act 134, Session Laws of Hawaii 2009 and the additional revenues raised therefor. [L 2009, c 134, pt of §2, §13(3); am L 2013, c 58, §1; am L 2022, c 79, §1]
Revision Note
L 2009, c 134, §9 codified to this section pursuant to §23G-15.