Bill Text: HI HB310 | 2013 | Regular Session | Introduced
Bill Title: Deposits Against Tax Liability; Interest
Spectrum: Moderate Partisan Bill (Republican 6-1)
Status: (Introduced - Dead) 2013-01-22 - Referred to FIN, referral sheet 3 [HB310 Detail]
Download: Hawaii-2013-HB310-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
310 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
Relating to deposits submitted to the Department of TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that tax disputes sometimes arise between a taxpayer and the department of taxation. These disputes may involve proceedings that take a long time to resolve. While such disputes are pending, interest accrues on the taxpayer's potential liability. This is a concern because the interest rate that must be paid to the State is approximately eight per cent per year, a much greater rate than is available on risk-free bank deposits. The legislature further finds that the State can assist taxpayers by allowing them to submit a cash deposit with the department for any current or future tax liabilities. While the department has such a process in place, and the federal government allows such deposits, state law is silent on the issue.
The purpose of this Act is to conform state law to federal law and implement a streamlined process by which a taxpayer may make a cash deposit with the department of taxation, which may be used by the department to pay any current or anticipated future tax liability imposed under law.
SECTION 2. Chapter 231, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§231- Deposits made to suspend the running of interest. (a) Notwithstanding any law or administrative practice to the contrary, a taxpayer may submit a cash deposit to the department for the payment of any current or future liability on any tax the department collects.
(b) A taxpayer shall not be required to enter into a formal cash bond-interest tolling agreement before submitting the deposit.
(c) To the extent the department applies the deposit toward a tax owed by the taxpayer, the amount applied shall be deemed paid as of the date the department received the deposit.
(d) If the department determines that a portion or all of the deposit is not necessary for any current tax liability, the department shall inform the taxpayer in writing of the determination.
(e) Unless the department reasonably determines that the collection of tax is in jeopardy, the department shall return to the taxpayer any amount of the deposit (to the extent not used for a payment of a tax) that the taxpayer requests in writing.
(f) No taxpayer shall be entitled to earn interest on any deposit submitted pursuant to this section.
(g) Before July 1, 2014, the department shall adopt administrative rules in accordance with chapter 91 to facilitate the administration of this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 6. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2013.
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INTRODUCED BY: |
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Report Title:
Deposits Against Tax Liability; Interest
Description:
Implements a streamlined process by which a taxpayer may make a cash deposit with the department of taxation, which may be used by the department to pay any current or anticipated future tax liability imposed under law.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
