HI HB968

Creates new section 231 establishing comprehensive confidentiality protections for all tax returns and return information filed under Hawaii law, making unlawful disclosure a felony punishable by up to $5,000 fine and/or five years imprisonment.

Specifies 13 categories of persons with material interest who may examine tax returns for tax purposes, including trustees, partners, shareholders, estate representatives, LLC members, and persons contractually obligated to pay taxes during audits.

Grants exceptions allowing disclosure to authorized government personnel including tax department employees, Attorney General and county prosecutors in criminal proceedings, and state/county agencies with court-ordered ex parte authorization.

Consolidates scattered disclosure restrictions from sections 235-116, 237-34, 237D-13, 251-12, and 842-12 into unified Chapter 231 framework while removing outdated misdemeanor penalties.

Takes effect upon approval and clarifies definitions of "return" and "return information" to include all related documents, supporting schedules, and data collected by the tax department.