Bill > SB3172

This bill requires the Department of Taxation to accept and evaluate offers in compromise, which are agreements to settle a tax debt for less than the full amount owed, under certain conditions, including when the Governor's approval is needed, and mandates a written determination on these offers within specific timeframes. It also extends the statute of limitations for collecting income tax and general excise tax (a tax on most business transactions) to six years, except in cases of false or fraudulent returns intended to evade taxes. Additionally, the bill clarifies that tax liens, which are legal claims against property for unpaid taxes, will no longer be enforceable after the underlying tax liability becomes uncollectible due to the statute of limitations expiring, and the department must release these liens automatically when that happens.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3172&year=2026