Hawaii Administrative Rules
Section 18-231-25.5-02 - Cost recovery for collection actions

Universal Citation: HI Admin Rules 18-231-25.5-02

Current through August, 2023

(a) The department may charge cost recovery fees for collection actions as provided by this section, unless waived under section 18-231-25.5-01(b).

(b) For the purpose of collection action fees, to establish "hardship" under section 18-231-25.5-01(b), a person must show that the failure to pay taxes which led to the collection action was an "excusable failure" as the term is used in section 231-3(12), HRS.

(c) Fees imposed under this section may be charged after the department has mailed written notice to a taxpayer demanding payment of delinquent taxes and advising that continued failure to pay the amount due may result in collection action, including the imposition of fees under this section. The notice shall be mailed to the taxpayer's last known address or place of business on file with the department in accordance with section 231-17, HRS, and may be mailed by first class or air mail.

(d) The written notice in subsection (c) shall contain a deadline date, no earlier than ten calendar days after the date of mailing, before which no fee set forth in this section may be charged.

(e) If the department determines that a collection of tax is in jeopardy as defined in section 231-24(a), HRS, the department may charge a fee set forth in this section for any collection action undertaken after the written notice in subsection (c) is given. In this instance, subsection (d) shall not apply.

(f) The fees that may be charged under this section are:

(1) For processing a delinquent taxpayer's account, $50 shall be charged at the close of business on the deadline date specified in subsection (d) if the debt or any part of the debt remains unpaid;

(2) For handling a foreclosure action, $50 shall be charged upon the completion of the detailed statement of taxes (prepared in connection with the filing of the department's court complaint or affirmative statement of claim), plus any costs including court costs or recording fees (such as a fee for recording the interlocutory decree of foreclosure) that are actually charged to and incurred by the department;

(3) For garnishment, levy, or other seizures of a delinquent taxpayer's wages, property or rights to property, $15 upon each service, including service by mail, of official notice upon the payor or custodian of the asset levied, or physical seizure of the asset levied, plus any court costs, recording fees, or related costs (such as a fee paid to a United States marshal for seizure of a vessel or bank charges for honoring a levy) that are actually charged to and incurred by the department;

(4) For any collection action requiring the services of collection agencies or attorneys, any reasonable fees charged by those attorneys or collection agencies that are actually incurred by the department;

(5) For recording a certificate of tax lien or a release of tax lien, $25 for recording at the Bureau of Conveyances, plus any other recording fees that are actually charged to and incurred by the department for recording with other agencies (such as with a county director of finance);

(6) For serving a subpoena in connection with a collection effort, $25 shall be charged, plus any other fees that are actually incurred by the department; and

(7) For collection actions other than that set forth in paragraph (1) to (6), any fees or costs that are actually charged to and incurred by the department.

(g) Each fee under subsection (f) shall be separately imposed, and a single delinquency may cause the imposition of several fees.

[Eff 12/15/95; am and ren § 18-231-25.5-01 3/03/97] (Auth: HRS §§ 231-3(9), 231-17, 231-25.5(e)) (Imp: HRS § 231-25.5)

Disclaimer: These regulations may not be the most recent version. Hawaii may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.