Bill > HB1173

This bill amends Hawaii's tax lien laws to improve transparency and protect taxpayers by requiring the Department of Taxation to include the assessment date on tax lien certificates and mandating the issuance of certificates of discharge for tax liabilities that have been either satisfied or have become unenforceable due to the expiration of a 15-year statute of limitations. Specifically, the bill modifies existing law to require that tax lien certificates now include the date of tax assessment, which helps provide clearer information about when the tax liability originated. Additionally, the department is now obligated to issue a discharge certificate when a tax liability has been paid in full or has expired under various specified tax code sections, ensuring that taxpayers are not unfairly burdened by old or resolved tax liens. The legislative intent is to align Hawaii's tax lien procedures more closely with federal tax practices, creating more transparent and fair processes for taxpayers. The bill will take effect on January 1, 2027, giving the Department of Taxation ample time to prepare for these new requirements.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1173&year=2025