HI SB1199

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

Permits authorized disclosure of tax returns and return information to specified parties including the taxpayer, authorized agents, government personnel with official duties, attorneys general, prosecutors, court-ordered disclosures, and persons with material interest (trustees, partners, shareholders, LLC members, beneficiaries, etc.).

Repeals duplicate confidentiality and disclosure penalty provisions from sections 235-116 (income tax), 237-34 (general excise tax), 237D-13 (transient accommodations tax), and 251-12 (surcharge tax) to consolidate all requirements into the new chapter 231 provision.

Repeals section 842-12 allowing police chiefs to inspect tax records, restricting tax information access to authorized government personnel under the new consolidated confidentiality framework.

Defines "return" as any tax or information return, declaration of estimated tax, or claim for refund filed with the department, and "return information" as taxpayer identity, income, payments, deductions, credits, and other tax-related data.