Report Title:

Taxpayer Information

Description:

Allows the State to share taxpayer information with counties.

THE SENATE

S.B. NO.

2788

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to tax.

 

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

SECTION 1. The legislature finds that allowing counties to obtain information about taxpayers within their jurisdiction is an important resource to strengthen county tax collection efforts. Counties are unable to audit their own tax exemptions and credits for residents filing within their own county. With access to state tax information, such as taxpayers filing as residents in a particular county, they would be able to follow up on discrepancies with their property tax exemptions and credits.

Counties such as Maui are having difficulty determining if real property tax filers claiming apartment or condominium classification should be reclassified as a hotel. There have been numerous complaints about hotel activities in apartments and condominiums; however, the county is unable to access the transit accommodations tax information that would provide the necessary and helpful information about tax filers within their county.

The purpose of this Act is to allow counties to obtain taxpayer information from the State.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235-   Authority and access to records. The director of finance of each county or an authorized representative shall have access to state taxpayer information for residents filing within the county's jurisdiction."

SECTION 3. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237D-   Authority and access to records. The director of finance of each county or an authorized representative shall have access to state taxpayer information for taxpayers filing within the county's jurisdiction."

SECTION 4. Section 231-18, Hawaii Revised Statutes, is amended to read as follows:

"231-18 Federal or other tax officials permitted to inspect returns; reciprocal provisions. Notwithstanding the provisions of any law making it unlawful for any person, officer, or employee of the State to make known information imparted by any tax return or permit any tax return to be seen or examined by any person, it shall be lawful to permit a duly accredited tax official of the United States or of any state or territory or of any county of this State or the Multistate Tax Commission to inspect any tax return of any taxpayer, or to furnish to such official, commission, or the authorized representative thereof an abstract of the return or supply the official, commission, or the authorized representative thereof with information concerning any item contained in the return or disclosed by the report of any investigation of the return or of the subject matter of the return for tax purposes only. The Multistate Tax Commission may make such information available to a duly accredited tax official of the United States [or to a duly accredited tax official of], any state or territory, any county of this State, or the authorized representative thereof, for tax purposes only."

SECTION 5. Section 237D-13, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All tax returns and return information required to be filed under this chapter, and the report of any investigation of the return or of the subject matter of the return, shall be confidential. It shall be unlawful for any person or any officer or employee of the State to intentionally make known information imparted by any tax return or return information filed pursuant to this chapter, or any report of any investigation of the return or of the subject matter of the return, or to wilfully permit any such return, return information, or report so made, or any copy thereof, to be seen or examined by any person; provided that for tax purposes only the taxpayer, the taxpayer's authorized agent, or persons with a material interest in the return, return information, or report may examine them. Unless otherwise provided by law, persons with a material interest in the return, return information, or report shall include:

(1) Trustees;

(2) Partners;

(3) Persons named in a board resolution or a one per cent shareholder in case of a corporate return;

(4) The person authorized to act for a corporation in dissolution;

(5) The shareholder of an S corporation;

(6) The personal representative, trustee, heir, or beneficiary of an estate or trust in case of the estate's or decedent's return;

(7) The committee, trustee, or guardian of any person in paragraphs (1) to (6) who is incompetent;

(8) The trustee in bankruptcy or receiver, and the attorney-in-fact of any person in paragraphs (1) to (7);

(9) Persons duly authorized by the State in connection with their official duties;

(10) Any duly accredited tax official of the United States or of any state or territory[;] or of any county of this State;

(11) The Multistate Tax Commission or its authorized representative; and

(12) Members of a limited liability company. Any violation of this subsection shall be a misdemeanor. Nothing in this subsection shall prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items of the reports or returns."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2004; provided that section 2 shall apply to taxable years beginning after December 31, 2004.

INTRODUCED BY:

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