Bill Text: HI HB2344 | 2014 | Regular Session | Introduced
Bill Title: Taxes; Tax Appeals
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-27 - The committee(s) on FIN recommend(s) that the measure be deferred. [HB2344 Detail]
Download: Hawaii-2014-HB2344-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2344 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAX APPEALS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 231-7.5, Hawaii Revised Statutes, is amended to read as follows:
"§231-7.5 Expedited appeals and
dispute resolution program. (a) The department shall be authorized to
implement an administrative appeals and dispute resolution program that shall
expeditiously resolve all tax, penalty, interest, fine, assessment, and other
such disputes between the department and the taxpayer or return preparer. The
director or the director's designee, who shall report directly and be
answerable solely to the director, shall serve as an independent appeals
officer and [shall] may be authorized to compromise, settle, or
otherwise resolve any dispute on any basis, including hazards and costs of
litigation, considering equally the position of the taxpayer and the department
on an impartial basis. The independent appeals officer shall not be influenced
by any department tax compliance initiatives and policies, or loss of revenue
to the State. Decisions of the independent appeals officer shall be in writing
stating the facts, analysis, and conclusions in support, which shall be
provided to the taxpayer and return preparer. Persons who currently serve or
have served in the previous five years as an auditor, audit supervisor or
manager, collector, collection supervisor or manager, district manager or supervisor,
or tax compliance administrator, shall not be eligible to be the director's
designee.
(b) The independent appeals officer may decide all questions of fact and all questions of law, excepting questions involving the Constitution or laws of the United States, necessary to the determination of the objections raised by the taxpayer in the petition; provided the independent appeals officer may not determine or declare an assessment illegal or void. Without prejudice to the generality of the foregoing, the independent appeals officer may allow or disallow exemptions pursuant to law whether or not previously allowed or disallowed by the assessor and may increase or lower any assessment.
(c) The independent appeals officer shall base the officer's decision on the evidence before it, and, as provided in section 231-20, the assessment made by the assessor shall be deemed prima facie correct. The independent appeals officer shall file with the assessor concerned the officer's decision in writing on each appeal decided by the officer and a copy of the decision shall be furnished to the taxpayer concerned by delivery or by mailing the copy addressed to the taxpayer's last known place of residence.
[(b)] (d) Notwithstanding any
other law to the contrary, including tax appeal procedures set forth under
chapter 232, a taxpayer shall be eligible to petition the department once for
participation in the administrative appeals and dispute resolution program
after issuance of a notice of [proposed] final assessment; provided
that if a taxpayer has filed a tax appeal with the tax appeal court or other
court, the taxpayer shall first be required to obtain the approval of the
director and permission from the respective court prior to petitioning the
department for participation. If a taxpayer has filed a notice of appeal
with a board of review, the taxpayer shall first be required to obtain the
approval of the board of review to transfer the case prior to petitioning the
department for participation; provided that a taxpayer may not petition the
department for participation after a board of review has issued a decision on
the same case. The director shall have the right to deny a petition for
cause.
[(c)] (e) The department shall
adopt procedures to carry out the purposes of this section, including
procedures relating to ex parte communications between the director or the
director's designee and other department personnel to ensure that such
communications do not compromise or appear to compromise the independence of the
administrative appeals and dispute resolution program.
[(d)] (f) The director of
taxation may appoint an administrative appeals officer as necessary to
administer this section, and perform other duties as directed by the director.
The administrative appeals officer shall be exempt from chapter 76 and may be a
legal or accounting professional; provided that no individual appointed under
this section shall render legal services reserved to the attorney general under
chapter 28."
SECTION 2. Section 232-7, Hawaii Revised Statutes, is amended to read as follows:
"§232-7 Boards of review; duties, powers, procedure before. (a) The board of review for each district shall hear informally all disputes, where the total amount in controversy for all title 14 taxes, excluding penalties and interest, is no more than $25,000, between the assessor and any taxpayer in all cases in which appeals have been duly taken and the fact that a notice of appeal has been duly filed by a taxpayer shall be conclusive evidence of the existence of a dispute; provided that this provision shall not be construed to permit a taxpayer to dispute an assessment to the extent that it is in accordance with the taxpayer's return.
(b) Each
board shall hold [public] meetings at some central location in its
taxation district at least once annually and shall hear, as speedily as
possible, all appeals presented for each year. A taxpayer's identity and final
documents submitted in support or opposition of an appeal shall [be public
information; provided that an individual taxpayer is authorized to redact all
but the last four digits of the taxpayer's social security number from any
accompanying tax return.] not be open to public inspection under chapter
92F. Each board shall have the power and authority to decide all questions
of fact and all questions of law, excepting questions involving the
Constitution or laws of the United States, necessary to the determination of
the objections raised by the taxpayer in the notice of appeal; provided that no
board shall have power to determine or declare an assessment illegal or void. Without
prejudice to the generality of the foregoing, each board shall have power to
allow or disallow exemptions pursuant to law whether or not previously allowed
or disallowed by the assessor and to increase or lower any assessment.
(c) The board shall base its decision on the evidence before it, and, as provided in section 231-20, the assessment made by the assessor shall be deemed prima facie correct. The board shall file with the assessor concerned its decision in writing on each appeal decided by it, and a certified copy of the decision shall be furnished by the assessor to the taxpayer concerned by delivery or by mailing the copy addressed to the taxpayer's last known place of residence.
(d) Each board and each member thereof in addition to all other powers shall also have the power to subpoena witnesses, administer oaths, examine books and records, and hear and take evidence in relation to any subject pending before the board. The tax appeal court shall have the power, upon request of the boards, to enforce by proper proceedings the attendance of witnesses and the giving of testimony by them, and the production of books, records, and papers at the hearings of the boards.
(e) If there exists more than one board of review in a taxation district, the chair of one board, administratively and without requirement of any formal action, may assign a member of that board to serve as a temporary member of the requesting board for purposes of establishing a quorum at a designated meeting of the requesting board. The temporary member shall serve only for the specific board meeting for which the assignment is made and only for the period necessary to establish and maintain a quorum. A temporary member may participate in discussion and vote on all matters before the board. Nothing herein shall prevent a member from being assigned multiple times under this subsection.
(f) Each board shall have the authority to refer, at its discretion, any case appealed to it to the expedited appeals and dispute resolution program established under section 231-7.5."
SECTION 3. Section 235-114, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) If the appeal is first made to the board, the appeal shall either be heard by the board or be transferred to the tax appeal court for hearing at the election of the taxpayer or employer. If heard by the board, an appeal shall lie from the decision thereof to the tax appeal court and to the intermediate appellate court, subject to chapter 602, in the manner and with the costs provided by chapter 232. The tax appeal court shall have jurisdiction of any case transferred by the board; provided that the taxpayer or employer pays to the tax appeal court the costs provided by chapter 232 within ten business days from the date of transfer. The supreme court shall prescribe forms to be used in the appeals. The forms shall show:
(1) The amount of taxes or liability upon the basis of the taxpayer's computation of the taxpayer's taxable income or the employer's computation of the employer's liability;
(2) The amount upon the basis of the assessor's computation;
(3) The amount upon the basis of the decisions of the board of review and tax appeal court, if any; and
(4) The amount in dispute.
If or when the appeal is filed with or transferred to the tax appeal court, the court shall proceed to hear and determine the appeal, subject to appeal to the intermediate appellate court as is provided in chapter 232."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Taxes; Tax Appeals
Description:
Clarifies that the independent appeals officer may decide all questions of fact and all questions of law, excepting questions involving the Constitution or laws of the United States, necessary to the determination of the objections raised by the taxpayer in the petition. Specifies procedure of the expedited appeals and dispute resolution program. Limits the amount in controversy for board of review cases to $25,000. Clarifies the procedure for the transfer of cases from the board of review to the Tax Appeal Court.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
