Bill Text: HI SB223 | 2021 | Regular Session | Amended
Bill Title: Relating To Contracting.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2021-02-12 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/JDC. [SB223 Detail]
Download: Hawaii-2021-SB223-Amended.html
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THE SENATE |
S.B. NO. |
223 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONTRACTING.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows:
"§46- Private building developments; tax
clearances. (a) No building license shall be granted for a
private development valued at $195,000 or greater, unless the applicant has presented
to the issuing officer tax clearances from the director of taxation and the
Internal Revenue Service on behalf of the building contractor and any
subcontractors. The issuing officer
shall verify that all contractors and subcontractors have filed all tax returns
due, and that all taxes, interest, and penalties levied against the contractor
and subcontractors or accrued under title 14 that are administered by the
department of taxation and under the Internal Revenue Code have been paid. The director of taxation may waive the
Internal Revenue Service tax clearance requirement if the director determines
that it is in the best interest of the State. A building license issued pursuant to this subsection
shall be valid for two years, provided that all appropriate tax clearances were
obtained and submitted with the application.
(b) Any assignment of a contract for a private
development valued at $195,000 or greater shall require the assignee, as a
condition precedent to the assignment, to first obtain a bulk sales certificate
if required under section 237-43, and present the certificate, or tax clearance
as provided under subsection (a) if a bulk sales certificate is not required,
to the state or county contracting officer or agent.
(c) If the building license issued pursuant to subsection
(a) expires, all state and county contracting officers or agents shall withhold
final inspection of a private development valued at $195,000 or greater until
the receipt of tax clearances from the director of taxation and the Internal
Revenue Service on behalf of the building contractor and any subcontractors; provided
that the tax clearances shall be dated no earlier than forty-five days prior to
the date of the request for final inspection of the private development.
(d) This section shall not apply to a contractor
or subcontractor if the department of taxation certifies that the contractor or
subcontractor is in good standing under a plan in which delinquent taxes,
interest, and penalties are being paid to the department of taxation or the
Internal Revenue Service, if applicable, in installments.
(e) The department of taxation may require that an
application for a tax
clearance required by this section be submitted electronically.
(f) Any officer or employee of any governmental agency
who intentionally or knowingly violates any provision under this section shall
be fined not more than $1,000 or imprisoned not more than one year, or both.
(g) This section shall not apply to the extent and during the period that the validity of the taxes, penalties, or interest is being contested in an administrative or judicial appeal with the department of taxation or Internal Revenue Service."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2022, and shall be repealed on December 31, 2026.
Report Title:
DOTAX; Counties; Contracting; Private Developments; Tax Clearance
Description:
Requires contractors and subcontractors to submit tax clearances as a condition of: (1) obtaining building permits for private developments exceeding a certain value, which shall be valid for two years; (2) assigning a contract for private developments exceeding a certain value; and (3) obtaining final inspection of private developments exceeding a certain value in certain circumstances. Authorizes the department of taxation to require that tax clearance applications be submitted electronically. Establishes penalties. Effective 1/1/2022. Repeals 12/31/2026. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
