Bill Text: HI HB828 | 2011 | Regular Session | Amended
Bill Title: Tax Administration; Cash Economy; Receipts and Records
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-06-14 - (H) Act 102, on 6/9/2011 (Gov. Msg. No. 1205). [HB828 Detail]
Download: Hawaii-2011-HB828-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
828 |
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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 TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 231-84, Hawaii Revised Statutes, is amended to read as follows:
"[[]§231-84[]] Right
to inspection of books, records, and premises; warrants and writs; levy and
seizure. (a) The right to inspection under this section shall be
applicable only if the following conditions are met:
(1) The licensee fails to openly display the license; and
(2) Upon request by the special enforcement section, the licensee fails to produce the license;
provided that the special enforcement section may conduct inspections pursuant to subsection (d) without regard to this subsection.
[(a)] (b) Upon presenting
credentials, the special enforcement section may examine any books, papers,
records, and any article or item of business transacted of any person engaged
in business in this State to verify the accuracy of the reporting and payment
of the taxes imposed by law. Every person in possession of any books, papers,
records, or articles or items of business transacted, and the person's agents
and employees, shall provide the special enforcement section the means,
facilities, and opportunities for the examinations upon request, to the extent
reasonably possible under the circumstances.
[(b)] (c) The special
enforcement section may inspect the operations, premises, and storage areas of
any person engaged in business in this State during regular business hours.
[(c)] (d) The special
enforcement section may inspect the operations, premises, and storage areas of
any person engaged in business in this State at any time, without notice, upon
the issuance of a warrant or writ of entry based upon probable cause of a
violation under title 14. The determination of probable cause for purposes of
this section shall be made based upon the standard of probable cause for an
administrative or civil search or seizure. Application for a search warrant or
writ of entry under this section shall be made by making a declaration, under
oath, which includes the following:
(1) The taxpayer's form of business;
(2) The taxpayer's interest in and address of the premises sought to be searched;
(3) Whether permission to search the premises has been requested in advance of requesting the warrant or writ;
(4) The particular books, records, items, articles, assets, or contraband reasonably believed to be on the premises; and
(5) The alleged violation reasonably believed to have occurred, including nonpayment of taxes; and, if searching or seizing in furtherance of collection, identification of the assets reasonably believed to be on the premises.
The special enforcement section may apply to the circuit court where the person is located for issuance of such warrant or writ. The special enforcement section may execute warrants or writs of entry. Any police officer, criminal investigator, or deputy sheriff of this State or any county shall be required to render assistance and aid to the special enforcement section in executing warrants and writs, upon request. Criminal law enforcement agencies that assist the special enforcement section may be compensated, as determined by the director; provided that no person or agency shall be compensated on the basis of a specific percentage or fraction of the money collected from taxpayers.
[(d)] (e) The special
enforcement section's ability to inspect shall include inspection of all
statements, books, papers, and records in whatever format, including electronic
format, articles or items of business transacted, including inventory,
supplies, stock, and cash on hand, pertaining to the sales or other business
activities of any person to verify the accuracy of the reporting and payment of
taxes imposed by law.
[(e)] (f) The special
enforcement section may seize and levy any assets in the custody or control of
any person pursuant to this chapter, and subject to all rights of appeal set
forth herein."
SECTION 2. Section 231-96, Hawaii Revised Statutes, is amended to read as follows:
"[[]§231-96[]] Failure
to record transaction [by receipt]. (a) It shall be
unlawful to knowingly conduct more than ten taxable business
transactions per day in cash and fail to [provide]:
(1) Offer a receipt or other record of
the transaction [when the means for issuing a receipt or recording the
transaction are available.]; and
(2) Maintain a contemporaneously generated record of all business transactions conducted each day,
whether hand written or generated by manually operated or electronic cash register. Each day a person is in violation of this section shall be treated as a separate violation.
[Any] (b) Except as provided in
subsection (c), any person who violates this section shall be subject to a
fine not to exceed $1,000; provided that if the person is a cash-based
business, the fine shall not exceed $2,000.
(c) If the person, including a cash-based business, is otherwise in compliance with title 14 at the time of violation of this section, the fine for a violation of this section shall not exceed $100."
SECTION 3. Section 231-97, Hawaii Revised Statutes, is repealed.
["[§231-97] Failure
to record transaction by register. It shall be unlawful to conduct
more than ten taxable business transactions per day in cash and fail to record
the transaction in a cash register when the means for recording the transaction
in a cash register are available. Each day a person is in violation of this
section shall be treated as a separate violation. Any person who violates this
section shall be subject to a fine not to exceed $1,000; provided that if the
person is a cash-based business, the fine shall not exceed $2,000."]
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 7, 2059.
Report Title:
Tax Administration; Cash Economy; Receipts and Records
Description:
Establishes conditions to inspect required records and receipts of cash business transaction and permits records to be prepared by hand or by cash register. Clarifies state of mind for violation of record and receipt requirements. Limits fine for violation if person is otherwise in compliance with tax laws. Effective January 7, 2059. (HB828 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
