Report Title:

Taxation

Description:

Establishes a statute of limitations for the collection of income taxes.

THE SENATE

S.B. NO.

2235

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to taxation.

 

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235- Statute of limitations. (a) Where the assessment of any tax imposed by this chapter has been made within the period of assessment properly applicable thereto, the tax may be collected by levy, lien, or by a proceeding in court; provided that the levy is made, lien attached, or the proceeding began:

(1) Within ten years from the assessment of the tax;

(2) Prior to ninety days after the period for collection agreed upon in writing by the department and the taxpayer in the case of an installment agreement; or

(3) Prior to the expiration of any period for collection agreed upon in writing by the department and the taxpayer in the case of a release of levy or lien after the ten-year period.

(b) If a court proceeding for the collection of a tax has timely commenced, the period during which the tax may be collected by levy or lien shall be extended and shall not expire until the liability for the tax or judgment against the taxpayer arising from the liability is satisfied or becomes unenforceable.

(c) The date on which a levy or lien on property or rights to property is made shall be the date on which proper notice is given."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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