HRS § 232-24 — Taxes paid pending appeal


§232-24 Taxes paid pending appeal. (a)
The tax paid upon the amount of any assessment, actually in dispute and in
excess of that admitted by the taxpayer, and covered by an appeal to the tax
appeal court duly taken, shall, pending the final determination of the appeal,
be paid by the director of finance into the "litigated claims fund".
If the final determination is in whole or in part in favor of the appealing
taxpayer, the director of finance shall repay to the taxpayer out of the fund,
or if investment of the fund should result in a deficit therein, out of the
general fund of the State, the amount of the tax paid upon the amount held by
the court to have been excessive or nontaxable, together with, from the date of
each payment into the litigated claims fund, the interest to be paid from the
general fund of the State. For purposes of this section, the rate of interest
shall be computed by reference to section 6621(a), with respect to interest
rate determination, of the Internal Revenue Code of 1986, as of January 1,
2010. The balance, if any, of the payment made by the appealing taxpayer, or
the whole of the payment, in case the decision is wholly in favor of the
assessor, shall, upon the final determination become a realization under the
tax law concerned.
(b) In a case of an appeal to the taxation
board of review, the tax paid, if any, upon the amount of the assessment
actually in dispute and in excess of that admitted by the taxpayer, shall,
during the pendency of the appeal and until and unless an appeal is taken to
the tax appeal court, be held by the director of finance in a special deposit.
In the event of final determination of the appeal in the taxation board of
review, the director of finance shall repay to the appealing taxpayer out of
the deposit the amount of the tax paid upon the amount held by the board to
have been excessive or nontaxable, if any, the balance, if any, or the whole of
the deposit, in case the decision is wholly in favor of the assessor, to become
a realization under the tax law concerned.