RELATING TO TAX COLLECTIONS.

Housing Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: NAKAMURA (Introduced by request of another party)
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill's effective date is set for July 1, 3000, which seems unusual and may be an error in the official text.

Suspension of Tax Collection Statute of Limitations

This bill suspends the time limit during which certain taxes can be collected if a taxpayer appeals an assessment to the taxation board of review or tax appeal court.

What This Bill Does

Suspends the statute of limitations on collecting income tax, general excise tax, transient accommodations tax, use tax, fuel tax, conveyance tax, and rental motor vehicle surcharge taxes when a taxpayer is appealing an assessment.
Applies to appeals filed with the taxation board of review or tax appeal court.
Suspension starts from the date the notice of appeal is filed until a final decision is issued or the case is withdrawn or dismissed.

Who It Names or Affects

Taxpayers who appeal tax assessments to the taxation board of review or tax appeal court will have extended time limits on collections during their appeals.
The state's Department of Taxation and other relevant agencies will need to follow these new rules when collecting taxes from taxpayers.

Terms To Know

statute of limitations: A law that sets a time limit for taking legal action, such as filing a lawsuit or collecting a debt.
tax appeal court: A special court where taxpayers can challenge decisions made by the Department of Taxation.

Limits and Unknowns

The bill does not specify how long after July 1, 3000 it will take effect.
It is unclear if this bill will pass in its current form or if there will be further amendments before final approval.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: The amendment changes certain tax collection rules in Hawaii, extending the time for collecting taxes and suspending limitation periods under specific conditions.

Extends the period to collect income taxes from three years to fifteen years after assessment if a proceeding is initiated within that timeframe.
Suspends the limitation on collecting taxes when taxpayers agree to it or are outside of Hawaii for at least six months, among other circumstances.
Clarifies and standardizes language across different tax sections.

The amendment text was truncated and does not provide complete information about all changes made in Section 4.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-14 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Matayoshi, Poepoe, Ward excused (4).
2025-02-14 H
Reported from JHA (Stand. Com. Rep. No. 745) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-13 H
The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Kahaloa, Perruso, Takayama, Todd, Garcia, Shimizu; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Cochran.
2025-02-10 H
Bill scheduled to be heard by JHA on Thursday, 02-13-25 2:00PM in House conference room 325 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to JHA, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO TAX COLLECTIONS.
Collection of Taxes; Statute of Limitations; Tax Appeal; Taxation Board of Review
Suspends the statute of limitations on collections of income tax, general excise tax, transient accommodations tax, use tax, fuel tax, conveyance tax, and rental motor vehicle, tour vehicle, and car-sharing vehicle surcharge tax during the period an assessment is pending on appeal before the taxation board of review or tax appeal court. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1150

HOUSE OF REPRESENTATIVES

H.B. NO.

1150

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAX COLLECTIONS.

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

����
SECTION 1.
�
Section
235-111, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

����
"(a)
�

General rule.
�
The amount of
income taxes imposed by this chapter (also the amount of income taxes imposed
by any preceding law of the State) and the liability of any employer in respect
of wages, shall be assessed or levied and the overpayment, if any, shall be
credited within three years after filing of the return for the taxable year, or
within three years of the due date prescribed for the filing of the return, whichever
is later.
�
No proceeding in court without
assessment for the collection of the taxes or the enforcement of the liability
shall be begun after the expiration of the period.
�
Where the assessment of the tax imposed by
this chapter has been made within the period of limitation applicable thereto,
the tax may be collected by levy or by a proceeding in court under chapter 231;
provided that the levy is made or the proceeding was begun within fifteen years
after the assessment of the tax.
�
For any
tax that has been assessed prior to July 1, 2009, the levy or proceeding shall
be barred after June 30, 2024.

����
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:

����
(1)
�
The
taxpayer agrees to suspend the period;

����
(2)
�
The
assets of the taxpayer are in control or custody of a court in any proceeding
before any court of the United States or any state, and for six months
thereafter;

����
(3)
�
An
offer in compromise under section 231-3(10) is pending; [
and
]

����
(4)
�
During
which the taxpayer is outside the State for a continuous period of at least six
months; provided that if at the time of the taxpayer's return to the State the
period of limitations on collection after assessment would expire before the
expiration of six months from the date of the taxpayer's return, the period
shall not expire before the expiration of the six months[
.
]
; and

����
(5)
�
An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed.
"

����
SECTION 2.
�

Section 237-40, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:

����
"
(a)
�
General rule.
�

The amount of excise taxes imposed by this chapter shall be assessed or
levied within three years after the annual return was filed, or within three
years of the due date prescribed for the filing of the return, whichever is
later, and no proceeding in court without assessment for the collection of any
of the taxes shall be begun after the expiration of the period.
�
Where the assessment of the tax imposed by
this chapter has been made within the period of limitation applicable thereto, the
tax may be collected by levy or by a proceeding in court under chapter 231;
provided that the levy is made or the proceeding was begun within fifteen years
after the assessment of the tax.
�
For any
tax that has been assessed prior to July 1, 2009, the levy or proceeding shall
be barred after June 30, 2024.

����
Notwithstanding
any other provision to the contrary in this section, the limitation on
collection after assessment in this section shall be suspended for the period:

����
(1)
�
The taxpayer agrees to suspend the period;

����
(2)
�
The assets of the taxpayer are in control or
custody of a court in any proceeding before any court of the United States or
any state, and for six months thereafter;

����
(3)
�
An offer in compromise under section 231-3(10)
is pending; [
and
]

����
(4)
�
During which the taxpayer is outside the State
if the period of absence is for a continuous period of at least six months;
provided that if at the time of the taxpayer
'
s
return to the State the period of limitations on collection after assessment
would expire before the expiration of six months from the date of the taxpayer
'
s
return, the period shall not expire before the expiration of the six months[
.
]
;
and

����
(5)
�
An appeal of the assessment is pending
before the taxation board of review or the tax appeal court, beginning on the
date the notice of appeal is filed and concluding on the date a final decision
is issued or the case is withdrawn or dismissed.
"

����
SECTION 3.
�

Section 237D-9, Hawaii Revised Statutes, is amended by amending
subsection (c) to read as follows:

����
"(c)
�

Except as otherwise provided by this section, the amount of taxes
imposed by this chapter shall be assessed or levied within three years after
the annual return was filed, or within three years of the due date prescribed
for the filing of the return, whichever is later, and no proceeding in court
without assessment for the collection of any of the taxes shall be begun after
the expiration of the period.
�
Where the
assessment of the tax imposed by this chapter has been made within the period
of limitation applicable thereto, the tax may be collected by levy or by a
proceeding in court under chapter 231; provided that the levy is made or the
proceeding was begun within fifteen years after the assessment of the tax.
�
For any tax that has been assessed prior to
July 1, 2009, the levy or proceeding shall be barred after June 30, 2024.

����
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:

����
(1)
�
The
taxpayer agrees to suspend the period;

����
(2)
�
The
assets of the taxpayer are in control or custody of a court in any proceeding
before any court of the United States or any state, and for six months
thereafter;

����
(3)
�
An
offer in compromise under section 231-3(10) is pending; [
and
]

����
(4)
�
During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer
'
s return to the State
the period of limitations on collection after assessment would expire before
the expiration of six months from the date of the taxpayer�s return, the period
shall not expire before the expiration of the six months[
.
]
; and

����
(5)
�
An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed.
"

����
SECTION 4.
�

Section 238-7, Hawaii Revised Statutes, is amended by amending
subsection (b) to read as follows:

����
"(b) Where the assessment of the tax
imposed by this chapter has been made within the period of limitation
applicable thereto, the tax may be collected by levy or by a proceeding in
court under chapter 231; provided that the levy is made or the proceeding was
begun within fifteen years after the assessment of the tax.
�
For any tax that has been assessed prior to
July 1, 2009, the levy or proceeding shall be barred after June 30, 2024.

����
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:

����
(1)
�
The
taxpayer agrees to suspend the period;

����
(2)
�
The
assets of the taxpayer are in control or custody of a court in any proceeding
before any court of the United States or any state, and for six months
thereafter;

����
(3)
�
An
offer in compromise under section 231-3(10) is pending; [
and
]

����
(4)
�
During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer�s return to the State the period of limitations on collection after
assessment would expire before the expiration of six months from the date of
the taxpayer's return, the period shall not expire before the expiration of the
six months[
.
]
; and

����
(5)
�
An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed.
"

����
SECTION 5.
�

Section 243-14, Hawaii Revised Statutes, is amended by amending
subsection (b) to read as follows:

����
"(b)
�

The amount of license taxes imposed by this chapter shall be assessed or
levied, or the overpayment, if any, shall be credited within three years after
filing of the monthly statement, or within three years of the due date
prescribed for the filing of the statement, whichever is later.
�
No proceeding in court without assessment for
the collection of the taxes or the enforcement of the liability shall begin
after the expiration of the three-year period.
�

Where the assessment of the tax imposed by this chapter has been made
within the period of limitation applicable thereto, the tax may be collected by
levy or by a proceeding in court under chapter 231; provided that the levy is
made or the proceeding was begun within fifteen years after the assessment of
the tax.
�
For any tax that has been
assessed prior to July 1, 2009, the levy or proceeding shall be barred after
June 30, 2024.

����
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:

����
(1)
�
The
taxpayer agrees to suspend the period;

����
(2)
�
The
assets of the taxpayer are in control or custody of a court in any proceeding
before any court of the United States or any state, and for six months
thereafter;

����
(3)
�
An
offer in compromise under section 231-3(10) is pending; [
and
]

����
(4)
�
During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer's return to the State the period of limitations on collection after
assessment would expire before the expiration of six months from the date of
the taxpayer's return, the period shall not expire before the expiration of the
six months[
.
]
; and

����
(5)
�
An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed.

As to all
tax payments for which a refund or credit is not authorized by this section
(including, without prejudice to the generality of the foregoing, cases of
unconstitutionality), the remedies provided by appeal or by section 40-35 are
exclusive."

����
SECTION 6.
�

Section 247-6.5, Hawaii Revised Statutes, is amended to read as follows:

����
"
�247-6.5
�
Limitation period for assessment, levy,
collection, or credit.
�
The amount of
conveyance taxes imposed by this chapter shall be assessed or levied, and the
overpayment, if any, shall be credited within three years after filing of the
certificate prescribed by section 247-6.
�

No proceeding in court without assessment for the collection of the
taxes shall be begun after the expiration of the three-year period.
�
Where the assessment of the tax imposed by
this chapter has been made within the period of limitation applicable thereto,
the tax may be collected by levy or by a proceeding in court under chapter 231;
provided that the levy is made or the proceeding was begun within fifteen years
after the assessment of the tax.
�
For any
tax that has been assessed prior to July 1, 2009, the levy or proceeding shall
be barred after June 30, 2024.

����
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:

����
(1)
�
The
taxpayer agrees to suspend the period;

����
(2)
�
The
assets of the taxpayer are in control or custody of a court in any proceeding
before any court of the United States or any state, and for six months
thereafter;

����
(3)
�
An
offer in compromise under section 231-3(10) is pending; [
and
]

����
(4)
�
During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the taxpayer�s
return to the State the period of limitations on collection after assessment
would expire before the expiration of six months from the date of the
taxpayer�s return, the period shall not expire before the expiration of the six
months[
.
]
; and

����
(5)
�
An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed.

����
In the case of a false or fraudulent
certificate filed with the intent to evade tax, or of a failure to file a
certificate, the tax may be assessed or levied at any time."

����
SECTION 7.
�

Section 251-8, Hawaii Revised Statutes, is amended by amending
subsection (c) to read as follows:

����
"(c)
�

Except as otherwise provided by this section, the amount of surcharge
taxes imposed by this chapter shall be assessed or levied within three years
after the annual return was filed, or within three years of the due date
prescribed for the filing of the return, whichever is later, and no proceeding
in court without assessment for the collection of any such surcharge taxes
shall begin after the expiration of the period.
�

Where the assessment of the tax imposed by this chapter has been made
within the period of limitation applicable thereto, the tax may be collected by
levy or by a proceeding in court under chapter 231; provided that the levy is
made or the proceeding was begun within fifteen years after the assessment of
the tax.
�
For any tax that has been
assessed prior to July 1, 2009, the levy or proceeding shall be barred after
June 30, 2024.

����
Notwithstanding any other provision to the
contrary in this section, the limitation on collection after assessment in this
section shall be suspended for the period:

����
(1)
�
The
taxpayer agrees to suspend the period;

����
(2)
�
The
assets of the taxpayer are in control or custody of a court in any proceeding
before any court of the United States or any state, and for six months
thereafter;

����
(3)
�
An
offer in compromise under section 231-3(10) is pending; [
and
]

����
(4)
�
During
which the taxpayer is outside the State if the period of absence is for a
continuous period of at least six months; provided that if at the time of the
taxpayer
'
s return to the State
the period of limitations on collection after assessment would expire before
the expiration of six months from the date of the taxpayer
'
s return, the period shall not
expire before the expiration of the six months[
.
]
; and

����
(5)
�
An
appeal of the assessment is pending before the taxation board of review or the
tax appeal court, beginning on the date the notice of appeal is filed and
concluding on the date a final decision is issued or the case is withdrawn or
dismissed.
"

����
SECTION 8.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 9.
�

This Act shall take effect upon its approval and shall suspend the
statute of limitations on collections of

assessments that were on appeal before the effective date of
this Act, from the filing date of the notices of appeal to the conclusion,
dismissal, or withdrawal of the appeals.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Collection of Taxes; Statute of Limitations; Tax Appeal;
Taxation Board of Review; Income Tax; General Excise Tax; Transient
Accommodations Tax; Use Tax; Conveyance Tax; Rental Motor Vehicle, Tour
Vehicle, and Car-Sharing Vehicle Surcharge Tax

Description:

Suspends the statute of limitations on collections during
the period an assessment is pending on appeal before the taxation board of
review or 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.