HB 1175: RELATING TO THE PROCEDURE FOR TAX APPEALS.

A BILL FOR AN ACT

RELATING TO THE PROCEDURE FOR TAX APPEALS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that section 232-19, Hawaii Revised Statutes, is no longer consistent with the appeal procedures adopted by the judiciary and must be amended to restore consistency.

     The legislature further finds that Alford v. City and County of Honolulu, 109 Hawaiʻi 14, 122 P.3d 809 (2005), created an issue regarding appellate jurisdiction over a dispositive order that is later merged into a final judgment if a notice of appeal is filed within thirty days of the judgment but not within thirty days of the earlier order.

     The purpose of this Act is to:

     (1)  Conform the statutory provisions for tax appeals with the procedures adopted by the judiciary; and

     (2)  Clarify that an appeal may be taken if a notice of appeal is filed within thirty days of the judgment or within thirty days of the earlier order.

     SECTION 2.  Section 232-19, Hawaii Revised Statutes, is amended to read as follows:

     "§232-19  Appeals; procedure.  Any taxpayer or county aggrieved or the assessor may appeal to the intermediate appellate court, subject to chapter 602, from the decision of the tax appeal court by filing a written notice of appeal [with the tax appeal court] and depositing [therewith] the costs of appeal, in the manner required by court rules, within thirty days after the filing of the decision[.] or within thirty days after entry of final judgment.  The appeal shall be considered and treated for all purposes as a general appeal and shall bring up for determination all questions of fact and all questions of law, including constitutional questions, involved in the appeal.  A notice of appeal may be amended at any time up to the final determination of the tax liability by the last court from which an appeal may be taken.  The appellate court shall enter a judgment in conformity with its opinion or decision.

     All such appeals shall be speedily disposed of and, in the hearing and disposition thereof, shall be given preference over other litigation in the discretion of the court."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Taxation; Tax Appeals; Filing; Appeal from Final Judgment

Description:

Removes language specifying that an appeal from the Tax Appeal Court be filed with the Tax Appeal Court.  Allows an appeal from the Tax Appeal Court to be filed within thirty days of entry of a final judgment.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 1368

Honolulu, Hawaii

RE:    H.B. No. 1175

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 1175 entitled:

"A BILL FOR AN ACT RELATING TO THE PROCEDURE FOR TAX APPEALS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Conform the statutory provisions for tax appeals with the procedures adopted by the Judiciary; and

     (2)  Clarify that an appeal may be taken if a notice of appeal is filed within thirty days of the judgment or within thirty days of the earlier order.

     Your Committee received testimony in support of this measure from one individual.

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that section 232-19, Hawaii Revised Statutes, is no longer consistent with the appeal procedures adopted by the Judiciary.  Your Committee further finds that Alford v. City and County of Honolulu, 109 Hawaiʻi 14, 122 P.3d 809 (2005), created an issue regarding appellate jurisdiction over a dispositive order that is later merged into a final judgment if a notice of appeal is filed within thirty days of the judgment but not within thirty days of the earlier order.  This measure will address these issues by conforming existing law relating to tax appeals with procedures adopted by the Judiciary and providing clarification regarding appellate jurisdiction over a dispositive order in certain situations.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1175, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary,

STAND. COM. REP. NO.  799

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1175

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Judiciary & Hawaiian Affairs, to which was referred H.B. No. 1175 entitled:

"A BILL FOR AN ACT RELATING TO THE PROCEDURE FOR TAX APPEALS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Repeal language specifying that an appeal from the Tax Appeal Court be filed with the Tax Appeal Court; and

     (2)  Allow an appeal from the Tax Appeal Court to be filed within thirty days of entry of a final judgment.

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that existing law relating to the appeal procedures by the Tax Appeal Court is outdated and no longer aligns with the appeal procedures adopted by the Judiciary, creating inconsistencies in the tax appeal process.  Your Committee further finds that Alford v. City and County of Honolulu, 109 Hawaii 14, 122 P.3d 809 (2005), raised concerns about appellate jurisdiction when a dispositive order is later merged into a final judgement, potentially leading to procedural confusion regarding the timing of appeals.  This measure resolves these issues by updating statutory provisions to conform with judicial procedures.

     As affirmed by the record of votes of the members of your Committee on Judiciary & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1175 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary & Hawaiian Affairs,