This bill is significant as it not only provides relief to those who may be struggling with outstanding tax debts but also serves to improve the state’s tax collection efforts. By incentivizing taxpayers to come forward and pay their dues without the burden of penalties, it potentially increases state revenue and encourages compliance with tax laws. The Hawaii Department of Taxation will be responsible for implementing and managing this program, including publicizing it to maximize participation.
Summary
Senate Bill 854 establishes a one-time tax amnesty program in Hawaii, aimed at allowing individuals and businesses to clear their tax liabilities without facing penalties. The amnesty will apply to taxes owed for taxable periods from January 1, 2010, to December 31, 2020, and it offers a chance for taxpayers to remit owed taxes voluntarily while having all penalties waived. The program is set to run from January 1, 2022, to December 31, 2022, providing a limited time window for taxpayers to take advantage of this relief option.
Contention
However, the amnesty program comes with certain eligibility requirements that may raise concerns among potential applicants. For instance, the program specifically excludes those taxpayers currently under criminal investigation or prosecution for tax-related issues. Critics might argue that such exclusions create barriers for many who need assistance the most. Additionally, there is a stipulation that no refunds or credits will be granted for any penalties or interests paid before the amnesty request, which may displease some taxpayers.
Notable_points
The bill emphasizes public awareness, mandating the director of taxation to undertake active measures to inform the public about the program. There are also specific provisions for installment payment under severe hardship, which allows eligible taxpayers who cannot pay in full right away to settle their debts over time. Overall, the bill reflects a proactive approach to tax collection while attempting to ease the financial burden on taxpayers.