disclosure of Tax Information

Permits the disclosure of general excise/use tax return and tax
return information to a person contractually obligated to pay
general excise and use taxes assessed against another.

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THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 237-34, Hawaii Revised Statutes, is
 2 amended by amending subsection (b) to read as follows:
 3      "(b)  All tax returns and return information required to be
 4 filed under this chapter, and the report of any investigation of
 5 the return or of the subject matter of the return, shall be
 6 confidential.  It shall be unlawful for any person or any officer
 7 or employee of the State to intentionally make known information
 8 imparted by any tax return or return information filed pursuant
 9 to this chapter, or any report of any investigation of the return
10 or of the subject matter of the return, or to wilfully permit any
11 such return, return information, or report so made, or any copy
12 thereof, to be seen or examined by any person; provided that for
13 tax purposes only the taxpayer, the taxpayer's authorized agent,
14 or persons with a material interest in the return, return
15 information, or report may examine them.  Unless otherwise
16 provided by law, persons with a material interest in the return,
17 return information, or report shall include:
18      (1)  Trustees;
19      (2)  Partners;

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 1      (3)  Persons named in a board resolution or a one per cent
 2           shareholder in case of a corporate return;
 3      (4)  The person authorized to act for a corporation in
 4           dissolution;
 5      (5)  The shareholder of an S corporation;
 6      (6)  The personal representative, trustee, heir, or
 7           beneficiary of an estate or trust in case of the
 8           estate's or decedent's return;
 9      (7)  The committee, trustee, or guardian of any person in
10           paragraphs (1) to (6) who is incompetent;
11      (8)  The trustee in bankruptcy or receiver, and the
12           attorney-in-fact of any person in paragraphs (1) to
13           (7);
14      (9)  Persons duly authorized by the State in connection with
15           their official duties;
16     (10)  Any duly accredited tax official of the United States
17           or of any state or territory;
18     (11)  The Multistate Tax Commission or its authorized
19           representative; [and]
20     (12)  Members of a limited liability company[.]; and
21     (13)  A person contractually obligated to pay the taxes
22           assessed against another when the latter person is
23           under audit by the department.

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 1 Any violation of this subsection shall be a misdemeanor."
 2      SECTION 2.  Section 238-13, Hawaii Revised Statutes, is
 3 amended to read as follows:
 4      "238-13  Other provisions of general excise tax law
 5 applicable.  In respect of (1) the examination of books and
 6 records and of taxpayers and other persons, (2) procedure and
 7 powers upon failure or refusal by a taxpayer to make a return or
 8 a proper return, and (3) the general administration of this
 9 chapter, the director of taxation shall have all the rights and
10 powers conferred upon the director by the general excise tax law
11 with respect to taxes thereby or thereunder imposed; and, without
12 restriction upon these rights and powers, sections 237-8, 237-30,
13 237-34, and 237-36 to 237-41 are hereby made applicable to and
14 with respect to the taxes and the taxpayers, tax officers, and
15 other persons, and the matters and things affected or covered by
16 this chapter, insofar as not inconsistent with this chapter, in
17 the same manner, as nearly as may be, as in similar cases covered
18 by the general excise tax law."
19      SECTION 3.  Statutory material to be repealed is bracketed.
20 New statutory material is underscored.
21      SECTION 4.  This Act shall take effect upon its approval and
22 shall apply to discussions after the effective date of this Act
23 regarding the assessment of additional taxes.

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 2                           INTRODUCED BY:  _______________________

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