Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 231 - ADMINISTRATION OF TAXES › Section 18-231-25.5-02 - Cost recovery for collection actions

Current through June, 2024
(a) The
			 department may charge cost recovery fees for collection actions as provided by
			 this section, unless waived under section 18-231-25.5-01(b).
(b) For the purpose of collection action
			 fees, to establish "hardship" under section 18-231-25.5-01(b), a person must
			 show that the failure to pay taxes which led to the collection action was an
			 "excusable failure" as the term is used in section
			 231-3(12),
			 HRS.
(c) Fees imposed under this
			 section may be charged after the department has mailed written notice to a
			 taxpayer demanding payment of delinquent taxes and advising that continued
			 failure to pay the amount due may result in collection action, including the
			 imposition of fees under this section. The notice shall be mailed to the
			 taxpayer's last known address or place of business on file with the department
			 in accordance with section
			 231-17, HRS,
			 and may be mailed by first class or air mail.
(d) The written notice in subsection (c)
			 shall contain a deadline date, no earlier than ten calendar days after the date
			 of mailing, before which no fee set forth in this section may be
			 charged.
(e) If the department
			 determines that a collection of tax is in jeopardy as defined in section
			 231-24(a),
			 HRS, the department may charge a fee set forth in this section for any
			 collection action undertaken after the written notice in subsection (c) is
			 given. In this instance, subsection (d) shall not apply.
(f) The fees that may be charged under this
			 section are:
(1) For processing a delinquent
			 taxpayer's account, $50 shall be charged at the close of business on the
			 deadline date specified in subsection (d) if the debt or any part of the debt
			 remains unpaid;
(2) For handling a
			 foreclosure action, $50 shall be charged upon the completion of the detailed
			 statement of taxes (prepared in connection with the filing of the department's
			 court complaint or affirmative statement of claim), plus any costs including
			 court costs or recording fees (such as a fee for recording the interlocutory
			 decree of foreclosure) that are actually charged to and incurred by the
			 department;
(3) For garnishment,
			 levy, or other seizures of a delinquent taxpayer's wages, property or rights to
			 property, $15 upon each service, including service by mail, of official notice
			 upon the payor or custodian of the asset levied, or physical seizure of the
			 asset levied, plus any court costs, recording fees, or related costs (such as a
			 fee paid to a United States marshal for seizure of a vessel or bank charges for
			 honoring a levy) that are actually charged to and incurred by the
			 department;
(4) For any collection
			 action requiring the services of collection agencies or attorneys, any
			 reasonable fees charged by those attorneys or collection agencies that are
			 actually incurred by the department;
(5) For recording a certificate of tax lien
			 or a release of tax lien, $25 for recording at the Bureau of Conveyances, plus
			 any other recording fees that are actually charged to and incurred by the
			 department for recording with other agencies (such as with a county director of
			 finance);
(6) For serving a
			 subpoena in connection with a collection effort, $25 shall be charged, plus any
			 other fees that are actually incurred by the department; and
(7) For collection actions other than that
			 set forth in paragraph (1) to (6), any fees or costs that are actually charged
			 to and incurred by the department.