Bill > HB2578

This bill clarifies that when the State determines an individual is personally responsible for another entity's unpaid general excise taxes, this determination is considered a formal tax assessment, meaning that person is entitled to the same due process procedures and appeal rights available for other tax assessments. The general excise tax is a tax on the gross income or gross proceeds of businesses in Hawaii. The bill specifically addresses situations where individuals like officers or managers of a business might be held personally liable if they willfully fail to pay taxes collected by the business. Previously, the Department of Taxation argued that such disputed taxes had to be paid under protest before a person could appeal, which could be difficult for individuals with limited financial means. This bill ensures that these individuals have a clearer path to dispute their personal liability and access the standard appeal processes, providing them with the same due process rights as other taxpayers.

Budget and Finance, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2578&year=2026