HOUSE OF REPRESENTATIVES	H.B. NO.	2599
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAX ADMINISTRATION.

 

 

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

 

     SECTION 1.  The purpose of this measure is to provide for the mandatory assessment of administrative costs associated with investigating tax crimes where a taxpayer is convicted of a tax offense or has a conviction deferred.

     SECTION 2.  Chapter 231, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§231-A  Criminal tax penalties; assessment for cost of investigation.  Any person who:

     (1)  Is convicted; or

     (2)  Is granted a deferred acceptance of plea pursuant to chapter 853;

of an offense under section 231-34, 231-35, 231-36, or 231-36.4 shall, in addition to any other penalties provided by law, be assessed by the court the actual cost of investigating the violation.

     Any costs recovered under this section shall be deposited into the tax administration special fund."

     SECTION 3.  Section 235-20.5, Hawaii Revised Statutes, is amended to read as follows:

     "§235-20.5  Tax administration special fund; established.  (a)  There is established a tax administration special fund, into which shall be deposited:

     (1)  Fees collected under sections 235-20, 235-110.9, and 235-110.91;

     (2)  Penalties collected under section 2 of Act 206, Session Laws of Hawaii 2007; [and]

     (3)  Revenues collected by the special enforcement section pursuant to section 231-85; provided that in each fiscal year, of the total revenues collected by the special enforcement section, all revenues in excess of $500,000 shall be deposited into the general fund[.]; and

     (4)  Assessments for the costs of criminal investigations recovered under section 231-A.

     (b)  The moneys in the fund shall be used for the following purposes:

     (1)  Issuing comfort letters, letter rulings, written opinions, and other guidance to taxpayers;

     (2)  Administering the tax credits under sections 235-110.9 and 235-110.91; [and]

     (3)  Administering the operations of the special enforcement section[.]; and

     (4)  Administering the operations of criminal investigations."

     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.  In codifying the new section added to chapter 231, Hawaii Revised Statutes, by section 2 of this Act, the revisor of statutes shall substitute an appropriate section number for the letter used in designating and referring to the new section in this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2010; provided that the amendments made to section 235-20.5, Hawaii Revised Statutes, by this Act shall not be repealed when:

     (1)  Section 235-20.5, Hawaii Revised Statutes, is reenacted on January 1, 2011, pursuant to section 8 of Act 206, Session Laws of Hawaii 2007; or

     (2)  Section 235-20.5, Hawaii Revised Statutes, is reenacted on June 30, 2014, pursuant to section 13 paragraph 3 of Act 134, Session Laws of Hawaii 2009.

 

INTRODUCED BY:	_____________________________
	BY REQUEST

 

 

Report Title:

Tax Administration; Criminal Cost Recovery

 

Description:

Provides for a cost recovery order issuable by the circuit court for investigation costs when a taxpayer is convicted of tax crimes.

 

 

 

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