HI HB2578

Establishes due process protections for individuals held personally liable for unpaid general excise taxes owed by a business entity they were associated with.

Currently, the Department of Taxation requires disputed taxes to be paid under protest before judicial review, which may be impossible for someone with minimal company ownership facing large tax liabilities.

Amends Section 237-41.5, Hawaii Revised Statutes, to classify personal liability determinations as formal assessments subject to standard tax dispute resolution procedures.

Allows aggrieved persons to appeal personal liability assessments, with appeals limited to whether the person qualifies as a responsible party and whether they willfully failed to pay taxes.

Effective date set for July 1, 3000 (placeholder date).