Report Title:

Tax Amnesty

 

Description:

Establishes a one-time tax amnesty period for delinquent taxpayers, beginning 1/1/03 and ending 7/31/03.

HOUSE OF REPRESENTATIVES

H.B. NO.

2381

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to taxation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the tragic events of September 11, 2001, have resulted in a number of businesses and individuals who are simply unable to pay their tax obligations to the State, whether because a slowdown in the tourism industry or because of unemployment.

The legislature further finds that these individuals and businesses, who are struggling for survival due to circumstances beyond their control, should have a second opportunity to pay their outstanding income taxes, general excise taxes, or other tax obligations, without additional penalty.

Accordingly, the purpose of this Act is to establish a one-time tax amnesty period, beginning January 1, 2003, and ending July 31, 2003, to give these taxpayers another opportunity to meet their delinquent tax obligations.

SECTION 2. Tax amnesty. (a) There is established an amnesty period beginning January 1, 2003, and ending July 31, 2003, during which time a taxpayer, who has failed to pay any state taxes on or before the day on which the tax is required to be paid, may pay to the director of taxation on or before July 31, 2003, the amount of that tax, without:

(1) Any interest that may otherwise be due;

(2) Any costs of collection that may otherwise be due; and

(3) The imposition of any civil or criminal penalties arising out of an obligation imposed under the state general excise tax law.

(b) This Act shall apply to all state tax liabilities for tax returns due prior to January 1, 2003, and shall not extend to any taxpayer who, at the time of the payment, is under criminal investigation or charge for any state tax matter, as certified by a county prosecuting attorney or the attorney general.

(c) If a taxpayer elects to participate in the amnesty program established pursuant to this Act, as that election shall be evidenced by full payment of a state tax liability, then that election shall constitute an express and absolute relinquishment of all administrative and judicial rights of appeal that have not run or otherwise expired as of the date payment is made. The relinquishment of rights of appeal pursuant to this Act shall apply with respect to all rights of appeal established by law. No tax payment made pursuant to this Act shall be eligible for refund or credit, whether claimed by administrative protest or judicial appeal, except as otherwise provided.

(d) No amnesty payment shall be accepted without the express approval of the director of taxation with respect to any state tax assessment that is the subject of any administrative or judicial appeal as of the effective date of this Act.

(e) No taxpayer shall be entitled to the waiver of penalty, interest, and cost of collection unless full payment of the tax due is made. There shall be imposed a five per cent penalty, which shall not be subject to waiver or abatement, in addition to all other penalties, interest, or costs of collection otherwise authorized by law, upon any state tax liability eligible to be satisfied during the amnesty period that was not satisfied during that period.

SECTION 3. This Act shall take effect on January 1, 2003.

INTRODUCED BY:

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