HB 655: RELATING TO MOTOR VEHICLES.

A BILL FOR AN ACT

RELATING TO MOTOR VEHICLES.

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

     SECTION 1.  The legislature finds that for some residents, the moneys owed for motor vehicle taxes and fees that have been unpaid for several years may exceed the value of the motor vehicle, making it difficult to renew the motor vehicle's registration or transfer its title.  These affected residents often decide to instead abandon their motor vehicles, creating environmental waste and further straining Hawaii's limited waste disposal capacity.

     The legislature believes that under certain circumstances, simply forgiving a portion of the unpaid taxes, fees, and accompanying penalties would be more financially and environmentally beneficial for the State and counties than having these motor vehicles abandoned.

     Accordingly, the purpose of this Act is to limit the required payment of certain unpaid motor vehicle taxes and fees and accompanying financial penalties to those incurred during the most recent five consecutive years of delinquency.

     SECTION 2.  Section 249-5.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All vehicles taxable under sections 249-1, 249-2, 249-4 and 249-6 to 249-13, which are stored so that they are not used for transportation, or for the other purposes covered by section 249-2, shall be exempt from the tax for the period of storage; provided that the owner of each vehicle shall first present to the director of finance a signed statement of the fact of the storage, together with other relevant facts as may be required by the director of finance and shall surrender the last issued certificate of registration, license plates, and emblem for the vehicle.  If the affidavit, certificate of registration, license plates, and emblem are presented to the director of finance after the expiration of the vehicle's registration period, then the unpaid tax for each month the license plates could have been validated with an emblem plus the fee for the currently issued license plates and emblem shall be paid in full upon presenting the affidavit[.]; provided that the moneys owed shall not exceed the current license plate and emblem fees plus any unpaid taxes due during the most recent five consecutive years that the license plate could have been validated with an emblem, regardless of the overall duration of delinquency."

     SECTION 3.  Section 249-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any tax imposed by sections 249-1 to 249-13 for any year and not paid when due, shall become delinquent and a penalty shall be added to, and become part of, the delinquent tax[.]; provided that the delinquent tax due shall not exceed the current tax due plus any unpaid taxes due and penalties incurred during the most recent five consecutive years of delinquency, regardless of the overall duration of delinquency.  The amount of the delinquency penalty shall be established by the county's legislative body.  If the date that the tax is due is a Saturday, Sunday, or legal holiday, the tax shall become delinquent at the end of the next day that is not a Saturday, Sunday, or legal holiday.  The director of finance may require the payment of any delinquent tax and penalty as a condition precedent to the registration, renewal, or transfer of ownership of [such] the vehicle.  Any vehicle not having the number plates required by sections 249-1 to 249-13, or any vehicle upon which taxes are delinquent as provided in this section, may be seized, wherever found, by the director of finance or by any police officer, and held for a period of ten days, during which time the vehicle shall be subject to redemption by its owner by payment of the taxes due, together with the delinquent penalties and the cost of storage and other charges incident to the seizure of the vehicle.  The director of finance, chief of police, or any police officer shall be deemed to have seized and taken possession of any vehicle, after having securely sealed it where located and posted a notice upon the vehicle, setting forth the fact that it has been seized for taxes and warning all other persons from molesting it under any penalty provided by section 249-11."

     SECTION 4.  Section 249-34, Hawaii Revised Statutes, is amended to read as follows:

     "§249-34  Delinquent penalties; seizure and sale for tax and fee.  Any tax or fee imposed under sections 249-31 and 249-33 for any year and not paid when due shall be subject to the penalties provided in section 249-10[.]; provided that any moneys due shall not exceed the current tax or fee, or both, due plus any unpaid taxes or fees, or both, due and penalties incurred during the most recent five consecutive years of delinquency, regardless of the overall duration of delinquency."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Motor Vehicles; Registration; Taxes; Penalties; Delinquency

Description:

Limits the required payment of certain unpaid motor vehicle taxes and fees and accompanying financial penalties to those incurred during the most recent five consecutive years of delinquency.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

RELATING TO MOTOR VEHICLES.

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

     SECTION 1.  The legislature finds that, for some residents, the moneys owed for motor vehicle taxes and fees that have been unpaid for several years may exceed the value of the motor vehicle, making it difficult to renew the motor vehicle's registration or transfer its title.  These affected residents often decide to instead abandon their motor vehicles, creating environmental waste and further straining Hawaii's limited waste disposal capacity.

     The legislature believes that under certain circumstances, simply forgiving a portion of the unpaid taxes, fees, and accompanying penalties would be more financially and environmentally beneficial for the State and counties than having these motor vehicles abandoned.

     Accordingly, the purpose of this Act is to limit the required payment of certain unpaid motor vehicle taxes and fees and accompanying financial penalties to those incurred during the most recent five consecutive years of delinquency.

     SECTION 2.  Section 249-5.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All vehicles taxable under sections 249-1, 249-2, 249-4 and 249-6 to 249-13, which are stored so that they are not used for transportation, or for the other purposes covered by section 249-2, shall be exempt from the tax for the period of storage; provided that the owner of each vehicle shall first present to the director of finance a signed statement of the fact of the storage, together with other relevant facts as may be required by the director of finance and shall surrender the last issued certificate of registration, license plates, and emblem for the vehicle.  If the affidavit, certificate of registration, license plates, and emblem are presented to the director of finance after the expiration of the vehicle's registration period, then the unpaid tax for each month the license plates could have been validated with an emblem plus the fee for the currently issued license plates and emblem shall be paid in full upon presenting the affidavit[.]; provided that the moneys owed shall not exceed the current license plate and emblem fees plus any unpaid taxes due during the most recent five consecutive years that the license plate could have been validated with an emblem, regardless of the overall duration of delinquency."

     SECTION 3.  Section 249-10, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Any tax imposed by sections 249-1 to 249-13 for any year and not paid when due, shall become delinquent and a penalty shall be added to, and become part of, the delinquent tax[.]; provided that the delinquent tax due shall not exceed the current tax due plus any unpaid taxes due and penalties incurred during the most recent five consecutive years of delinquency, regardless of the overall duration of delinquency.  The amount of the delinquency penalty shall be established by the county's legislative body.  If the date that the tax is due is a Saturday, Sunday, or legal holiday, the tax shall become delinquent at the end of the next day that is not a Saturday, Sunday, or legal holiday.  The director of finance may require the payment of any delinquent tax and penalty as a condition precedent to the registration, renewal, or transfer of ownership of [such] the vehicle.  Any vehicle not having the number plates required by sections 249-1 to 249-13, or any vehicle upon which taxes are delinquent as provided in this section, may be seized, wherever found, by the director of finance or by any police officer, and held for a period of ten days, during which time the vehicle shall be subject to redemption by its owner by payment of the taxes due, together with the delinquent penalties and the cost of storage and other charges incident to the seizure of the vehicle.  The director of finance, chief of police, or any police officer shall be deemed to have seized and taken possession of any vehicle, after having securely sealed it where located and posted a notice upon the vehicle, setting forth the fact that it has been seized for taxes and warning all other persons from molesting it under any penalty provided by section 249-11."

     SECTION 4.  Section 249-34, Hawaii Revised Statutes, is amended to read as follows:

     "§249-34  Delinquent penalties; seizure and sale for tax and fee.  Any tax or fee imposed under sections 249-31 and 249-33 for any year and not paid when due shall be subject to the penalties provided in section 249-10[.]; provided that any moneys due shall not exceed the current tax or fee, or both, due plus any unpaid taxes or fees, or both, due and penalties incurred during the most recent five consecutive years of delinquency, regardless of the overall duration of delinquency."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

Report Title:

Motor Vehicles; Registration; Taxes; Penalties; Delinquency

Description:

Limits the required payment of certain unpaid motor vehicle taxes and fees and accompanying financial penalties to those incurred during the most recent 5 consecutive years of delinquency.

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.  749

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 655

      H.D. 1

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. 655, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

     The purpose of this measure is to limit the required payment of certain unpaid motor vehicle taxes and fees and accompanying financial penalties to those incurred during the most recent five consecutive years of delinquency.

     Your Committee received testimony in support of this measure from one individual.  Your Committee received testimony in opposition to this measure from the Department of Transportation.  Your Committee received comments on this measure from Tax Foundation of Hawaii.

     Your Committee finds that establishing limitations on the payment of unpaid motor vehicle taxes, fees, and penalties will reduce the financial burden on residents with long-term delinquent vehicle taxes.  This measure will also alleviate the administrative burden on government agencies attempting to collect old debts.

     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. 655, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

STAND. COM. REP. NO.  72

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 655

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Transportation, to which was referred H.B. No. 655 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLES,"

begs leave to report as follows:

     The purpose of this measure is to limit the required payment of certain unpaid motor vehicle taxes and fees and accompanying financial penalties to those incurred during the most recent five consecutive years of delinquency.

     Your Committee received testimony in support of this measure from one individual.  Your Committee received comments on this measure from Tax Foundation of Hawaii and one individual.

     Your Committee finds that this measure provides a statute of limitations on unpaid motor vehicle taxes and fees and penalties to address the uncertainty and administrative burden of these fees on residents and the government respectively.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 655, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 655, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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