Bill Text: HI HB382 | 2011 | Regular Session | Amended
Bill Title: Auditor; Powers and Duties; Tax Returns
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2011-05-05 - (S) Vetoed on 05-05-11 - Returned from the Governor without approval (Gov. Msg. No. 1145). [HB382 Detail]
Download: Hawaii-2011-HB382-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
382 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE AUDITOR.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 23-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The auditor may examine and inspect
all accounts, books, records, files, papers, and documents and all financial
affairs of every department, office, agency, and political subdivision[.],
including the state department of taxation; provided that for examinations and
inspections relating to the state department of taxation, the auditor shall
implement internal policies to protect the confidentiality of private personal
information contained in tax returns."
SECTION 2. Section 231-18, Hawaii Revised Statutes, is amended to read as follows:
"§231-18 [Federal or other tax
officials] Officials permitted to inspect returns; reciprocal
provisions. Notwithstanding the provisions of any law making it unlawful
for any person, officer, or employee of the State to make known information
imparted by any tax return or permit any tax return to be seen or examined by
any person, it shall be lawful to permit a duly accredited tax official of the United
States, any state or territory, any county of this State, or the Multistate Tax
Commission or the auditor to inspect any tax return of any taxpayer, or
to furnish to an official, commission, or the authorized representative thereof
an abstract of the return or supply the official, commission, or the authorized
representative thereof with information concerning any item contained in the
return or disclosed by the report of any investigation of the return or of the
subject matter of the return for tax or auditing purposes only. The
Multistate Tax Commission may make the information available to a duly
accredited tax official of the United States, any state or territory, or the
authorized representative thereof, for tax purposes only."
SECTION 3. Section 235-116, Hawaii Revised Statutes, is amended to read as follows:
"§235-116 Disclosure of returns unlawful; penalty. All tax returns and return information required to be filed under this chapter shall be confidential, including any copy of any portion of a federal return which may be attached to a state tax return, or any information reflected in the copy of such federal return. It shall be unlawful for any person, or any officer or employee of the State, including the state auditor or the auditor's agent, to make known intentionally information imparted by any income tax return or estimate made under sections 235-92, 235-94, 235-95, and 235-97 or wilfully to permit any income tax return or estimate so made or copy thereof to be seen or examined by any person other than the taxpayer or the taxpayer's authorized agent, persons duly authorized by the State in connection with their official duties, the Multistate Tax Commission or the authorized representative thereof, except as provided by law, and any offense against the foregoing provisions shall be punished by a fine not exceeding $500 or by imprisonment not exceeding one year, or both."
SECTION 4. Section 237-34, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the state auditor or the auditor's agent, to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any such return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for tax purposes only the taxpayer, the taxpayer's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person in paragraphs (1) to (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) to (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory;
(11) The Multistate Tax Commission or its authorized representative;
(12) Members of a limited liability company; and
(13) A person contractually obligated to pay the taxes assessed against another when the latter person is under audit by the department.
Any violation of this subsection shall be a misdemeanor."
SECTION 5. Section 237D-13, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the state auditor or the auditor's agent, to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for tax purposes only the taxpayer, the taxpayer's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person in paragraphs (1) to (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) to (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States, any state or territory, or of any county of this State;
(11) The Multistate Tax Commission or its authorized representative; and
(12) Members of a limited liability company.
Any violation of this subsection shall be a misdemeanor. Nothing in this subsection shall prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items of the reports or returns."
SECTION 6. Section 251-12, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State, including the state auditor or the auditor's agent, to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any such tax return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for surcharge tax purposes only the lessor or tour vehicle operator, the lessor's or tour vehicle operator's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:
(1) Trustees;
(2) Partners;
(3) Persons named in a board resolution or a one per cent shareholder in case of a corporate return;
(4) The person authorized to act for a corporation in dissolution;
(5) The shareholder of an S corporation;
(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in case of the estate's or decedent's return;
(7) The committee, trustee, or guardian of any person in paragraphs (1) to (6) who is incompetent;
(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) to (7);
(9) Persons duly authorized by the State in connection with their official duties;
(10) Any duly accredited tax official of the United States or of any state or territory;
(11) The Multistate Tax Commission or its authorized representative; and
(12) Members of a limited liability company.
Any violation of this subsection shall be a
misdemeanor. Nothing in this subsection shall prohibit the publication of
statistics so classified as to prevent the identification of particular reports
or returns and the items of the reports or returns."
SECTION 7. Statutory material to be repealed is bracketed and stricken.
New statutory material is underscored.
SECTION 8. This Act shall take effect upon its approval.
Report Title:
Auditor; Powers and duties
Description:
Grants explicit authority to the Auditor to inspect the documents and financial affairs of the Department of Taxation. Requires the Auditor to implement internal policies to protect confidentiality of private personal information contained in tax returns. Provides penalty provisions applicable to the Auditor or Auditor's agent for disclosure of tax information. (HB382 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
