Hawaii Senate Bill SB3147

Hawaii 2022 Regular Session

• Introduced: 1/26/22
• Refer: 1/26/22

Caption

Relating To Collection Of Delinquent Taxes.

Impact

The proposed changes would impact current state laws regarding the handling of tax debts. Specifically, the transition from a lien system to civil judgment could expedite the recovery of tax debts, as civil judgments can be enforced more readily than tax liens. This means that once a lien is converted, the state could pursue various legal remedies to recover funds, which may include garnishing wages or seizing assets of those who owe taxes. These adjustments may significantly bolster the state's capacity to manage delinquent accounts and improve overall tax collection rates.

Summary

Senate Bill 3147 aims to enhance the collection of delinquent taxes in the state of Hawaii by amending Section 231-33 of the Hawaii Revised Statutes. The bill allows the Director of Taxation to apply to the circuit court to convert tax liens into enforceable civil judgments, thereby streamlining the process of collecting unpaid taxes. By establishing a legal framework for this conversion, the bill seeks to create a more efficient mechanism for the state to recover funds owed from individuals or entities that fail to meet their tax obligations.

Contention

While the bill is designed to improve tax collection efficiency, it could raise concerns regarding debtor rights and the implications of converting tax liens into civil judgments. Critics may argue that such measures could lead to more aggressive enforcement tactics and potentially unfair treatment of individuals facing financial hardships. Moreover, the effectiveness of this legislation will depend on how the courts handle these cases and whether they prioritize taxpayer protections alongside revenue recovery efforts.