Report Title:

Nonpayment of Fuel Taxes; Citizen Lawsuit

Description:

Establishes a private right of action against a taxpayer for the nonpayment of fuel taxes.

THE SENATE

S.B. NO.

2300

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 243, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"243-   Private right of action against taxpayer for nonpayment. (a) Any citizen may maintain a lawsuit to recover taxes imposed by this chapter or chapter 231 on the sale, transfer, or distribution of liquid fuel or fuel, or on any income derived therefrom, that have not been collected by or paid to the State or counties, including but not limited to taxes that were not collected or paid due to a false or fraudulent statement or act by a taxpayer or the taxpayer's agent, with the intent to evade the payment of taxes.

(b) The taxes recoverable under this section shall be for the taxable years beginning after December 31, 1959.

(c) There shall be no statute of limitations for the filing or maintaining of an action based upon a taxpayer's false or fraudulent statements or acts.

(d) Any taxpayer found to be liable for unpaid taxes in an action brought under this section shall pay the plaintiff's attorney's fees and costs. The court may calculate attorney's fees based on a contingency fee formula or percentage of judgment formula.

(e) All moneys recovered in an action brought under this section, less moneys awarded to the plaintiff for attorney's fees and costs, shall be paid into the general fund of the State or county, as appropriate."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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