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HCR 101

REQUESTING THE DEPARTMENT OF TAXATION TO ESTABLISH A TAX AMNESTY DAY TO ALLOW BUSINESSES AND INDIVIDUALS TO PAY UNPAID TAXES WITHOUT PENALTIES OR FINES.

2025 Regular Session Introduced by Terez Amato and 6 co-sponsors

HCR 101 asks Hawaii to establish a one-day tax amnesty allowing payment of outstanding taxes without penalties to boost voluntary compliance and revenue.

Referred to FIN, referral sheet 22
#departmentoftaxation #taxamnestyday
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Bill Summary · HCR 101

Summary — HCR 101 (2025)

Requesting the Department of Taxation to establish a Tax Amnesty Day to allow businesses and individuals to pay unpaid taxes without penalties or fines

Main purpose and intent

HCR 101 is a concurrent resolution asking (but not legally requiring) the Hawaii Department of Taxation to create a one‑time “Tax Amnesty Day.” On that day, businesses and individuals would be able to voluntarily pay outstanding state taxes without being assessed additional penalties or fines. The stated goals are to increase voluntary compliance, reduce administrative enforcement burdens, and generate additional revenue for government services.

Key provisions

  • Requests the Department of Taxation to establish a Tax Amnesty Day that permits taxpayers to pay unpaid taxes without penalties or fines.
  • Directs the Department to develop guidelines and procedures for implementation, including public outreach to inform eligible taxpayers.
  • Requests the Department to submit a report to the Legislature on feasibility and potential impact of the proposed Tax Amnesty Day no later than 20 days before the convening of the Regular Session of 2026.
  • Directs that a certified copy of the concurrent resolution be transmitted to the Director of Taxation.

What the bill would change

  • HCR 101 itself does not change statutory tax law; it is a concurrent resolution that requests agency action. Any actual amnesty program would require the Department’s implementation under existing authority or subsequent legislation to change substantive law (e.g., waiving interest, setting eligibility windows, or addressing criminal referrals).

Who would be affected

  • Businesses and individual taxpayers with outstanding state tax liabilities would be the primary beneficiaries if they choose to participate.
  • The Department of Taxation would be responsible for designing and carrying out the program and producing the requested report.
  • State budget/treasury could see short‑term revenue increases from collected back taxes; effects on long‑term compliance and enforcement budgets would depend on program design.

Context and precedent

  • The resolution cites a 2009 “Tax Fresh Start Program” in Hawaii that reportedly collected about $14.4 million (including ~$4.2 million in general excise tax and ~$3.9 million in income tax), and notes that other jurisdictions have used amnesty programs to boost collections.

Potential impacts and considerations

  • Potential benefits: immediate revenue, improved compliance records, reduced enforcement costs and case backlog.
  • Potential drawbacks/concerns: fairness to compliant taxpayers, possible moral hazard encouraging future noncompliance, administrative and outreach costs, and uncertainty about whether interest or criminal referrals would be addressed (the resolution specifically waives penalties and fines but is silent on interest and criminal liability).
  • The Department’s report is expected to analyze feasibility and impacts and should address eligibility criteria, anticipated revenue, administrative capacity, treatment of interest and criminal referrals, outreach strategy, and timeline.

Legislative status and timeline

  • Introduced: March 6, 2025. Referred to FIN (referral sheet 22).
  • House actions indicate the resolution was adopted by the House on April 14, 2025, received by the Senate, and has been referred for further committee consideration.
  • The Department of Taxation is to report to the Legislature no later than 20 days before the 2026 Regular Session.
  • Companion measure: HR 97.

Compiled from official sources — confirm details with the bill’s official record.

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