Bill Text: HI HB956 | 2013 | Regular Session | Introduced
Bill Title: Delinquent Taxes
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-24 - Referred to FIN, referral sheet 5 [HB956 Detail]
Download: Hawaii-2013-HB956-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
956 |
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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 DELINQUENT TAXES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to set a reasonableness standard for when a tax is deemed uncollectible, rather than the minimum two-year period currently existing in the statute. This will allow the department of taxation to concentrate on the accounts that will likely generate the greatest recovery to the State. The proposed amendments will allow the department to consider various factors in determining when an account is uncollectible. Currently, even if an account is uncollectible, the department must wait two years before deeming it uncollectible. This creates undue stress and anxiety to the taxpayer who may have health or other insurmountable financial problems. This also will relieve the department of keeping track of numerous small claims where the costs of collection, including employee time, will exceed any expected recovery.
SECTION 2. Section 231-32, Hawaii Revised Statutes, is amended to read as follows:
"§231-32 Records of delinquent taxes, uncollectible delinquent taxes. The department of taxation shall prepare and maintain, open to public inspection, a complete record of the amounts of taxes assessed in each district that have become delinquent with the name of the delinquent taxpayer in each case, but it shall not be necessary to periodically compute on the records the amount of penalties and interest upon delinquent taxes.
The department may from time to time prepare
lists of all taxes delinquent which in its judgment are uncollectible. Such
taxes as the department finds to be uncollectible shall be entered in a special
record and be deleted from the other books kept by the department, and the
department shall thereupon be released from any further accountability for
their collection; provided that no account shall be so deleted [until it
shall have been delinquent for at least two years.] except for
reasonable cause, considering such factors as the financial condition of the
taxpayer, inability to locate the taxpayer, costs of collection against the
amount of tax owed, health of the taxpayer, and future income prospects of the
taxpayer. Any items so written off may be transferred back to the
delinquent tax roll if the department finds that the alleged facts as
previously presented to it were not true, or that such items are in fact
collectible."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act upon its approval shall take effect on January 1, 2013.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Delinquent Taxes
Description:
Establishes a reasonableness standard for when a tax is deemed uncollectible.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
