Bill > HB655

This bill addresses motor vehicle tax and fee delinquency in Hawaii by limiting the required payment of unpaid taxes and penalties to those incurred during the most recent five consecutive years, regardless of the total duration of delinquency. The legislation aims to help vehicle owners who might otherwise abandon their vehicles due to overwhelming accumulated taxes and fees that potentially exceed the vehicle's value. Specifically, the bill modifies several sections of Hawaii Revised Statutes related to motor vehicle taxation, including sections 249-5.5, 249-10, and 249-34, to cap the amount of delinquent taxes, fees, and penalties that can be collected. The changes mean that when vehicle owners seek to renew registration, transfer ownership, or resolve tax issues, they will only be required to pay current fees plus unpaid taxes and penalties from the most recent five years, even if the total period of delinquency is longer. The legislature believes this approach will be more financially and environmentally beneficial by reducing vehicle abandonment and providing a more manageable path for owners to resolve tax obligations. The bill is set to take effect on July 1, 3000, and does not affect rights, penalties, or proceedings that occurred before its effective date.

Budget and Finance, Justice, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=655&year=2026