July 10, 2000

RE: Act 199, Session Laws of Hawaii 2000 (Act 199), Relating to Taxation Appeals.

Prior to Act 199, taxpayers were required to pay the tax (including penalties and interest) assessed as a condition to appealing the assessed tax to one of the four independent Boards of Review.  Act 199 eliminates this pre-payment requirement when appealing a tax assessment to a Board of Review.  The pre-payment requirement is still in force for direct appeals to the Tax Appeal Court.

If the taxpayer prevails at the Board level and the department appeals, the taxpayer is not required to pay the tax assessed. However, the assessed tax must be paid when the decision by a Board is in favor of the department and appealed by the taxpayer.

Act 199 is effective for appeals filed on or after June 8, 2000.

Forms and other tax information are available at the Department's website at:

On Oahu, forms may be ordered by calling the Department's Forms Request Line at:   808-587-7572.  Persons who are not calling from Oahu may call: 1-800-222-7572 (toll free) to receive forms by mail or 808-678-0522 from a fax machine to receive forms by fax.

Director of Taxation

HRS Sections Explained: HRS Sections 232-24, 235-114, 237-42, 237D-11, 238-8, 243-14.5, 244D-12, 245-10, 247-4.5, and 251-10.