HAR §18-231-59. (Reserved

) §18-231-91-01 Procedures; scope and purpose.  (a) Sections 18-231-91-01 to 18-231-100-01, implement section 231-91, HRS through section 231-100, HRS, relating to Cash Economy Enforcement; Citations, and apply notwithstanding any contrary provision in title 14, HRS, and the rules adopted thereunder relating to the general enforcement of taxes. (b) A cease and desist citation pursuant to section 231-91, HRS, may include a monetary fine for any infraction under title 14, HRS, including but not limited to the following monetary fines: (1) Failure to produce license upon demand, section 231-94, HRS; (2) Failure to keep adequate books and records, section 231-95, HRS; (3) Failure to record transaction, section 231-96, HRS; (4) (Reserved); (5) Tax avoidance price fixing, section 231-98, HRS; (6) Possession of currency for tax avoidance purposes, section 231-99, HRS; (7) Interference with a tax official, section 231-100, HRS; (c) The administrative rules contained herein govern the practice and procedure in all cease and desist citations issued by the special enforcement section, including the imposition of any monetary fines, and any subsequent rights of review. (d) An agency appeal of a cease and desist citation under section 231-91(e), HRS, shall be conducted as a contested case under chapter 91, HRS. The procedures for contested cases in chapter 91, HRS (including sections 91- 8.5 through 91-15, HRS), shall apply to agency appeals. (e) The administrative rules contained in sections 18-231-91-01 through 18-231-91-100-01 shall be construed to secure the just and speedy determination of every cease and desist citation issued. (f) Should any section, paragraph, sentence, clause, phrase, or application of this subchapter be declared unconstitutional or invalid for any reason, the remainder of any other application of said chapter shall not be affected thereby. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) §18-231-91-02 Definitions.  As used in sections 18-231-91-01 through 18-231-100-01: “Agency appeal” means an appeal of a cease and desist citation to the director or the director’s designee pursuant to section 231-91(e), HRS. “Department” means the department of taxation. “Director” means the director of taxation. “Hearing” means a contested case hearing in accordance with chapter 91, HRS, to determine an agency appeal. “Person” means one or more individuals, a company, a corporation, a partnership, an association, or any other type of legal entity, and also includes an officer or employee of a corporation, a partner or employee of a partnership, a trustee of a trust, a fiduciary of an estate, or a member, employee, or principal of any other entity, HRS §231-91 HRS §231-91 §18-231-91-03 ADMINISTRATION OF TAXES 231- 30 (Unofficial Compilation as of 12/31/2025) who as such officer, employee, partner, trustee, fiduciary, member or principal is under a duty to perform and is principally responsible for performing the act in respect of which the violation occurs. “Presiding officer” means the director or presiding officer who will be conducting the hearing. “Respondent” means the person to whom the cease and desist citation is addressed. “Special enforcement section” means the unit created within the department to carry out the functions set forth in section 231-81, HRS. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) §18-231-91-03 Cease and desist citation; requirements.  (a) A cease and desist citation must be issued on the forms prescribed by the department. (b) A cease and desist citation shall include the following in its contents: (1) The name and address of the respondent; (2) The location of where the offense is about to occur, is occurring, or has occurred. If the location is a vehicle, the vehicle must be specifically identified, including its location at the time of the infraction; (3) The specific alleged violation or violations of title 14, HRS, or the administrative rules adopted thereunder which constitute cause for the issuance of the cease and desist citation, including (if applicable) any allegation that the person is a cash-based business as defined in section 231-93, HRS; (4) A signature of the special enforcement section employee or other Department employee authorized to issue the citation. By signing the cease and desist citation, the issuer certifies that the statements contained in the citation are true and correct, to the best of his or her knowledge. A citation that has not been signed by a duly authorized employee of the Department shall be void ab initio; (5) If applicable, the amount of the monetary fine imposed against the respondent; (6) A space for the respondent, or the respondent’s agent or representative, to acknowledge receipt of the citation by signature. If the respondent or respondent’s agent or representative refuses to sign or if for some other reason the special enforcement section employee is unable to acquire a signature to acknowledge receipt, the citation may indicate “refused to sign,” “unavailable,” “no signature for safety reasons,” or other language explaining the lack of signature by the respondent or the respondent’s agent or representative. The lack of the signature of the respondent or the respondent’s agent or representative shall not affect the validity of the citation; (7) Information regarding respondent’s appeal rights, including the requirement that the citation must be returned to the special enforcement section within thirty days from the date of the citation, respondent’s right to a hearing before the director or the director’s designee, and contact information for where the respondent may obtain further information. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) §18-231-91-04 Issuance of a cease and desist citation.  (a) A cease and desist citation is both a notice of violation and an offer to settle an administrative case involving any violation of title 14, HRS, or any of the administrative rules adopted thereunder and may include a monetary fine where permitted under the applicable statutes and rules. (b) Any duly authorized employee of the department who is assigned to the special enforcement section may issue a cease and desist citation to a person if there is reason to believe the person has violated, is violating, or is about to violate any provision of title 14, HRS, or any administrative rule adopted thereunder. (c) A cease and desist citation may be served by: (1) Personal service on the respondent, respondent’s officer or director, or respondent’s registered agent for service of process as shown in the records of the department of commerce and consumer affairs; (2) Service by certified mail, restricted delivery, sent to the respondent’s last known business or residence address or the address of respondent’s registered agent for service of process as shown in the records of the department of commerce and consumer affairs; or (3) If service by certified mail is not made because of refusal to accept service or because the department has been unable to ascertain the address necessary for service under paragraph (2) after reasonable and diligent inquiry, the cease and desist citation may be served by publication at least once in each of two successive weeks in a newspaper of general circulation. (d) The date on which the citation is served on the respondent shall constitute the date of issuance. If the citation is served by publication under subsection (c)(3), the date of service of the citation is the last date of publication in the second successive week. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) HRS §231-91 HRS §231-91 ADMINISTRATION OF TAXES §18-231-91-09 231- 31 (Unofficial Compilation as of 12/31/2025) §18-231-91-05 Response to cease and desist citation.  (a) A respondent must respond to a cease and desist citation within thirty days from the date of its issuance: (1) By paying to the special enforcement section the stated amount of the monetary fine, which shall constitute acknowledgement of the violation and a waiver of further rights of review, provided that if the tendered payment is dishonored for any reason not the fault of the department, the respondent will be deemed not to have answered the citation; or (2) By appealing the citation by making a written request to the special enforcement section for a contested case hearing in accordance with these rules and Chapter 91, HRS, including but not limited to section 18-231-91-08. Written requests for contested case hearings may be indicated on the citation itself. (b) If the respondent fails to respond to the cease and desist citation within thirty days from the date the citation is issued: (1) The failure is an acknowledgement that the allegations contained in the citation are true, and that the relief sought in the citation, including any monetary fines, is appropriate; and (2) The department may collect any overdue monetary fines and enforce any overdue non- monetary sanctions as set forth in section 18-231-91-25(b). (c) The hearing of an agency appeal shall be limited solely to the allegations contained in the citation. No other matter may be considered, including, but not limited to, any disputes relating to any tax liability. [Eff 11/30/14; am 4/3/16] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) §18-231-91-06 Venue.  Venue of the hearing of an agency appeal is proper in the taxation district in which the alleged violation is said to have occurred, is occurring, or is about to occur, or such other location as the parties to the hearing may mutually agree. Any party may participate in the hearing by telephone, provided that the presiding officer receives written notice of such intent at least five days before the hearing. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) §18-231-91-07 Docket.  The director or the director’s representative shall maintain a docket of all agency appeals and each agency appeal shall be assigned a number. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-08 Hearing; request for and scheduling.  (a) Upon receipt of an agency appeal request, the special enforcement section shall notify the director of the appeal and the director or the director’s designee shall schedule a hearing. (b) A written request for an agency appeal shall contain a concise statement of the basic facts, the issues contested, and the relief the respondent is requesting. The department may prepare departmental forms that may be substituted for any written request for an agency appeal which may be required for any authorized proceedings pursuant to law or rules. (c) No hearing shall be held until due notice is given to all parties as provided in sections 91-9 and 91- 9.5, HRS, or their successor laws. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9), 231-7) (Imp: HRS §§91-9, 91-9.5, 231-91) §18-231-91-09 Presiding officer of hearings; duties and powers; substitute presiding officers.  (a) The director shall conduct the hearings on an appeal, shall render the decision, and shall issue such orders and take such actions as may be required; provided that the director may designate a representative, who shall be the presiding officer, to conduct the hearings, and make recommendations in writing to the director, which recommendations shall include recommendations as to findings of fact and conclusions of law. If the presiding officer’s recommendation is adverse to any party other than the department, the recommended decision shall be served on the person contesting the citation. The person contesting the citation shall thereafter have ten calendar days from the date the recommendation is mailed to file exceptions to the recommendation and to present arguments to the director in writing. The director shall then personally consider the whole record or such portion thereof as may be cited by the parties, shall render the decisions as to findings of fact and conclusions of law in writing, and shall issue such orders and take such actions as may be further required. (b) In all hearings, the presiding officer shall have the power to give notice of the hearing, arrange for the administration of oaths, examine witnesses, certify to official acts, rule on offers of proof, receive relevant evidence, regulate the course and conduct of the hearing, including regulating the manner of any examination of a witness to prevent harassment or intimidation and ordering the removal of disruptive individuals, and perform such other duties necessary for the proper conduct of the hearings. (c) The presiding officer may subpoena witnesses and books, papers, documents, other designated objects, or any other record, however maintained, pursuant to section 231-7, HRS. HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-91 §18-231-91-10 ADMINISTRATION OF TAXES 231- 32 (Unofficial Compilation as of 12/31/2025) (d) Any of these rules of practice and procedure may be suspended or waived by stipulation of all the parties. (e) The presiding officer may engage the services of a stenographer, or someone similarly skilled, to take a verbatim record of the evidence presented at any hearing if requested for purposes of rehearing or court review. The party making the request shall be responsible for the fees for the transcript. If a verbatim record is taken, any other party may request a certified transcript of the proceedings at that party’s cost. (f) If a presiding officer is absent from a scheduled hearing or is incapacitated from performance of duty, the director may designate another representative to serve as a substitute presiding officer without abatement of the proceedings. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-10 Disqualification of presiding officers.  (a) A presiding officer shall be disqualified from deciding an agency appeal if the presiding officer: (1) Has a substantial financial interest, as defined by section 84-3, HRS, in a business or other undertaking that will be directly affected by the decision of the agency appeal; (2) Is related within the third degree by blood or marriage to any party to the proceeding or any party’s representative or attorney; (3) Has participated in the investigation preceding the institution of the agency appeal proceedings or has participated in the development of the evidence to be introduced in the hearing; or (4) Has a personal bias or prejudice concerning a party that will prevent a fair and impartial decision involving that party. (b) A presiding officer shall withdraw from further participation in the proceedings upon discovery of a disqualifying conflict of interest or bias if the factual circumstances are undisputed. If the allegation of a disqualifying conflict of interest or bias is not clearly substantiated, the presiding officer need not voluntarily withdraw and the party seeking the disqualification may file a motion to disqualify the presiding officer. The motion shall be filed and decided before the evidentiary portion of the hearing on the agency appeal. If a presiding officer is disqualified, the director shall designate another representative to serve as the presiding officer. If the disqualified presiding officer is the director, the director shall designate a representative to serve as the presiding officer whose findings of fact, conclusions of law, and decision and order shall be final and binding. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-11 Communications with the director or presiding officers.  (a) No person shall communicate with the director or presiding officer regarding matters to be decided by the director or presiding officer in any agency appeal with the intent, or the appearance of the intent, to influence the decision of the director or presiding officer, unless all of the parties to the proceedings are given notice of communication and an opportunity to also communicate with the director or presiding officer. (b) If a communication is made privately with the presiding officer in violation of subsection (a), the presiding officer shall disclose the communication to all parties on the record of the proceedings and afford all parties an opportunity to respond to, refute, or otherwise comment on the ex parte communication. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-12 Computation of time.  In computing any time period under these rules, the day of the act, event, or default from which the period of time begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday, state holiday, or state government furlough day. Intermediate Saturdays, Sundays, legal holidays, or government furlough days shall be included. Intermediate Saturdays, Sundays, state holidays, or state government furlough days shall be excluded in the computation when the period of time prescribed or allowed is less than seven days. Whenever an act required to be performed under these rules may be accomplished by mail, the act shall be deemed to have been performed on the date the items are actually received by the recipient. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-13 Filing of documents; amendment; dismissal; retention.  (a) All pleadings, submittals, petitions, applications, charges, reports, maps, exceptions, briefs, memorandums, and other papers required to be filed in any agency appeal shall be filed with the director or as instructed by the director or presiding officer. Such papers may be sent electronically, by facsimile transmission, by United States mail, postage prepaid, or by hand-delivery to the department, within the time limit, if any, as set forth in any statute or rule, for such filing. The date on which the papers are actually received by the department or at the hearing shall be deemed to be the date of filing. (b) Filing electronically means emailing the filing in pdf format or other format as instructed by the director or presiding officer to an email address designated by the director or presiding officer. The email shall include HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-91 ADMINISTRATION OF TAXES §18-231-91-16 231- 33 (Unofficial Compilation as of 12/31/2025) a subject line identifying the appeal number, the respondent, and the hearing date and a description of the papers being filed. (c) All papers filed with the department, other than papers filed electronically or by facsimile, shall be written in ink, typewritten, or printed, shall be plainly legible, shall be on strong durable paper, not larger than 8-1/2 by 11 inches in size except that tables, maps, charts, and other documents may be larger, but shall be folded to the size of the documents to which they are attached. Papers filed electronically or by facsimile must be transmitted in a form that can be legibly and understandably printed to 8-1/2 by 11 inch paper or 8-1/2 by 17 inch paper. (d) All papers must be signed in ink by the party or a duly authorized agent or attorney. The presentation to the director (whether by signing, filing, submitting, or later advocating) of any paper shall constitute a certification that the party in interest has read the document; that to the best of the party’s knowledge, information, and belief every statement contained in the document is true and no such statements are misleading; and that the document is not interposed for delay. (e) Unless otherwise specifically provided by a particular rule or order of the department, an original and two copies of all papers shall be filed. Papers sent electronically or by facsimile transmission shall not require any copies. However, the original must be presented to the Department upon request. (f) The initial document filed by any person in any proceeding shall state on the document’s first page the name and mailing address of the person or persons who may be served with any documents filed in the proceeding. (g) All papers filed in an agency appeal shall be served on all other parties to the hearing by the filing party. Service may be accomplished by: (1) Personal service on the party, party’s officer or director, or party’s registered agent for service of process as shown in the records of the department of commerce and consumer affairs; (2) Service by certified mail, restricted delivery, sent to the party’s last known business or residence address or the address of party’s registered agent for service of process as shown in the records of the department of commerce and consumer affairs; or (3) If service by certified mail is not made because of refusal to accept service or because it has not been possible to ascertain the address necessary for service under paragraph (2) after reasonable and diligent inquiry, the papers may be served by publication at least once in each of two successive weeks in a newspaper of general circulation. (h) If any document initiating or filed in an agency appeal is not in substantial conformity with the applicable rules of the department as to the document’s contents, or is otherwise insufficient, the presiding officer, on his or her own motion, or on motion of any party, may strike the document, or require its amendment. The document initiating the agency appeal may not be stricken, but may be subject to required amendments. If amendments are required, the document with amendments shall be effective as of the date of the original filing. (i) All documents filed in an agency appeal shall be retained in the files of the presiding officer, except that the presiding officer may permit the withdrawal of original documents upon submission of properly authenticated copies to replace the original documents. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-14 Filed documents available for public inspection; exceptions.  (a) Unless otherwise provided by statute, rule, or order of the presiding officer, all information contained in any document filed in an agency appeal shall be available for inspection by the public after final decision. (b) Confidential treatment may be requested where authorized by statute. For good cause shown, the presiding officer shall grant such a request. (c) When permitted or authorized, matters of public record may be inspected in the appropriate offices of the department during regular office hours. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231- 91) §18-231-91-15 Appearances in agency appeal.  (a) An individual may appear in the individual’s own behalf; a general partner may represent a partnership; and a bona fide officer or employee of an entity may represent the entity in any hearing. (b) A person may be represented by an attorney or attorneys-at-law qualified to practice before the supreme court of Hawaii in any hearing under these rules. (c) A person shall not be represented in any hearing except as stated in subsections (a) and (b). (d) Any person appearing at a hearing in a representative capacity on behalf of a respondent shall submit a notice of appearance and a power of attorney at least seven days prior to the date of the hearing. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-16 Substitution of parties.  Upon motion and for good cause shown, the presiding officer may order substitution of parties, except that in the case of a death of a party, substitution may be ordered without the filing of a motion. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) HRS §231-91 HRS §231-91 HRS §231-91 §18-231-91-17 ADMINISTRATION OF TAXES 231- 34 (Unofficial Compilation as of 12/31/2025) §18-231-91-17 Consolidation; separate hearings.  (a) The presiding officer, upon his or her own initiative or upon motion, may consolidate for hearing or for other purposes or may contemporaneously consider two or more proceedings that involve substantially the same parties, or issues that are the same or closely related, if the presiding officer finds that the consolidation or contemporaneous hearing will be conducive to the proper dispatch of the business of the department and to the ends of justice and will not unduly delay the proceedings. (b) The presiding officer, upon his or her own initiative or upon motion, may separate any issue, appeal, or other matter for hearing or for other purposes if the director or presiding officer finds that the separation will be conducive to the proper dispatch of business of the department and to the ends of justice. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-18 Intervention.  Applications to intervene in a proceeding shall comply with section 18-231-91-13 and shall be served on all parties. Applications for intervention will be granted or denied at the discretion of the presiding officer. As a general policy, such applications shall be denied unless the petitioner shows that it has an interest in a question of law or fact involved in the contested matter. [Eff 11/30/14; am 4/3/16] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-19 Prehearing conferences; exchange of exhibits; briefs.  (a) The presiding officer may hold or cause to be held prehearing conferences with the parties for the purpose of formulating or simplifying the issues, arranging for the exchange of proposed exhibits or proposed written testimony, setting of schedules, exchanging of names of witnesses, limitation of number of witnesses, and such other matters as may expedite orderly conduct and disposition of the proceeding as permitted by law. (b) The presiding officer may request briefs setting forth the issues, facts, and legal arguments upon which the parties intend to rely and the presiding officer may fix the conditions and time for the filing of briefs and the number of pages. Exhibits may be reproduced in an appendix to the brief. A brief of more than twenty pages shall contain a subject index and table of authorities. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231- 91) §18-231-91-20 Motions.  (a) All motions other than those made during a hearing shall be made in writing to the presiding officer, shall state the relief sought, and shall be accompanied by an affidavit or memorandum setting forth the grounds upon which they are based. The presiding officer shall set the time for all motions and opposing memoranda, if any. (b) The moving party shall serve a copy of all motions on all other parties at least fourteen calendar days prior to the hearing on the motion. Service shall be in accordance with the rules of service of papers under section 18- 231-91-13(g). (c) A memorandum in opposition or a counter affidavit shall be served on all parties not later than seven calendar days prior to the hearing. Service shall be in accordance with the rules of service of papers under section 18- 231-91-13(g). (d) Failure to serve or file a memorandum in opposition to a motion or failure to appear at the hearing shall be deemed a waiver of objection to the granting or denial of the motion. [Eff 11/30/14; am 4/3/16] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-21 Evidence.  (a) The presiding officer shall rule on the admissibility of all evidence. The presiding officer may exercise discretion in the admission or rejection of evidence and the exclusion of immaterial, irrelevant, or unduly repetitious evidence with a view to doing substantial justice. (b) Evidence shall generally consist of the cease and desist citation, any applicable reports, or other written statements submitted by either party. (c) When objections are made to the admission or exclusion of evidence, the grounds relied upon shall be stated briefly. Formal exceptions to rulings are unnecessary and need not be taken. (d) With the approval of the presiding officer, a witness may read testimony into the record on direct examination. Before any prepared testimony is read, unless excused by the presiding officer, the witness shall deliver copies thereof to the presiding officer and all counsel parties. If the presiding officer deems that substantial savings in time will result, a copy of the prepared testimony may be received in evidence without reading. (e) If relevant and material matter is offered in evidence in a document containing other matters, the party offering it shall designate specifically the matter so offered. If the other matter in the document would burden the record, at the discretion of the presiding officer, the relevant and material matter may be read into the record or copies of it received as an exhibit. Other parties shall be afforded opportunity at the time to examine the document, and to offer in evidence other portions believed material and relevant. HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-91 ADMINISTRATION OF TAXES §18-231-94-01 231- 35 (Unofficial Compilation as of 12/31/2025) (f) If any matter contained in a document on file as a public record with the department is offered in evidence, unless otherwise directed by the presiding officer, the document need not be produced and may be received in evidence by reference. (g) Official notice may be taken of such matters as may be judicially noticed by the courts of the State of Hawaii. Official notice may also be taken of generally recognized technical or scientific facts when parties are given notice either before or during the hearing of the material so noticed and afforded the opportunity to contest the facts so noticed. (h) Exhibits shall be prepared in the same format as that required for the filing of documents under section 18-231-91-13, unless otherwise directed or permitted by the presiding officer. (i) At the hearing, the presiding officer may require the production of further evidence upon any issue. Upon agreement of the parties, the presiding officer may authorize the filing of specific documentary evidence as a part of the record within a fixed time. [Eff 11/30/14; am 4/3/16] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-10, 231- 91) §18-231-91-22 Continuances or extensions of time.  Whenever a person or agency has a right or is required to take action within the period prescribed or allowed by this chapter for an agency appeal, the presiding officer may (1) before the expiration of the prescribed period, with or without notice, extend such period; or (2) upon motion, permit the act to be done after the expiration of a specified period where the failure to act is reasonably shown to be excusable. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-23 Service of decisions.  All final orders, opinions, or rulings entered in an agency appeal shall be served in accordance with section 91-12, HRS. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-12, 231-91) §18-231-91-24 Correction of transcript.  Motions to correct the transcript shall be made within five days after the receipt of the transcript and shall be acted upon by the presiding officer. [Eff 11/30/14] (Auth: HRS §§91-2, 231-3(9)) (Imp: HRS §§91-9, 231-91) §18-231-91-25 Enforcement and stay.  (a) Unless otherwise stated in a final decision, all monetary fines and non-monetary sanctions shall be due and payable within thirty days of the service of the final decision imposing such fines and sanctions, provided that if any party appeals such final decision to the circuit court, such monetary fines and non-monetary sanctions may be stayed by the reviewing court under section 91-14, HRS. (b) The department is authorized to collect any overdue monetary fines and to enforce any overdue non­ monetary sanctions imposed under any final decision, by referral of the matter to the attorney general for such action as it may deem necessary. In the director’s discretion, any uncollected monetary fine may be referred to third parties, including a collection agency, or may be offset against any amounts owed by the department to the person. Any third party service fees incurred for the collection of any monetary fine, including collection agency fees, shall be the responsibility of the person against which the monetary fine was assessed. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-91) §18-231-92-01 (Reserved.) §18-231-93-01 (Reserved.) §18-231-94-01 Fine for failure to produce license.  (a) A person required to be licensed or permitted under title 14, HRS (whether or not so licensed or permitted), and who fails to produce the license or permit upon demand by the special enforcement section shall be fined as follows: (1) For a first offense, a fine of $250; (2) For second and subsequent offenses, a fine of $500; provided that if the person is a cash- based business, the fine shall be $1,000. (b) A person may produce the original of the license or permit, a copy of the license or permit, a print out from the department showing that such person holds a license or permit, a completed application to the department for a license or permit along with proof of payment of any applicable license or permit fees, or a general excise tax return not older than one year along with evidence of payment of any taxes shown on such return, provided that a return that shows no taxes owing shall not be acceptable. (c) Only one citation for a violation of this section may be issued to the person in any thirty day period Every citation issued under this section shall be considered as a separate violation. (d) For purposes of this section, a person who sells at a swap meet, flea market, garage sale, farmers market, open market, trade show, or similar event shall be deemed to be engaging in business if the person sells goods and/or services of any kind in the State at more than three separate events in any taxable year, regardless of the location HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-91 HRS §231-94 §18-231-95-01 ADMINISTRATION OF TAXES 231- 36 (Unofficial Compilation as of 12/31/2025) or amount of the sales activity, unless such person can demonstrate to the department’s satisfaction that all sales occurring at one or more of such events were casual sales as defined under section 237-1, HRS. Each day that a person sells at a swap meet, flea market, garage sale, farmers market, open market or similar event shall be considered as a separate event. (e) It is an absolute defense to this section if the person produces a license or permit number on file with the department and the department confirms that the person is associated with that number and the number is valid for the purpose of that person’s activities. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-94) §18-231-95-01 Fine for failure to keep adequate books and records.  (a) A person required to keep adequate books and records but who fails to produce such books and records upon demand by the special enforcement section shall be fined as follows: (1) For the first offense, a fine of $500; (2) For second and subsequent offenses, a fine of $1,000; provided that if the person is a cash- based business, the fine shall be $2,000. (b) A person shall not be required to keep books and records in any particular format, provided that the books and records fairly reflect the financial matters of the business, including (but not limited to) the revenue and expenses of the business. (c) The special enforcement section shall demand the production of books and records in writing that shall state: (1) That if the person was unable to produce the books and records while the special enforcement section officer was present, the person must make an appointment with the special enforcement section officer to deliver the books and records to that officer or another officer of the special enforcement section at a state tax office within fourteen days; and (2) What period of books and records the person must produce. (d) Where a person’s business records are not in his or her possession due to transient business location, the special enforcement section will allow the person to produce the books and records at a state tax office. A person may agree to produce books and records outside a state tax office, or agree to produce books and records in a period of time shorter than fourteen days, at his or her discretion and upon agreement with a special enforcement section officer. (e) Only one citation may be issued to the person in any thirty day period for any demand of any period of books and records. Following the expiration of the thirty day period, a citation may be issued for failure to produce the same books and records demanded in connection with any previous citation, or for failure to produce books and records for a different period. Every citation issued under this section shall be considered as a separate violation. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-95) §18-231-96-01 Fine for failure to record transaction.  (a) A person who conducts taxable business transactions in cash and who fails to offer a receipt or other record of the transaction and who fails to maintain a contemporaneously generated record of all business transactions conducted each day, shall be fined as follows: (1) For a first offense, a fine of $500; (2) For second and subsequent offenses, a fine of $1,000; provided that if the person is a cash- based business, the fine shall be $2,000. (b) For purposes of this section, a transaction is a business transaction if the activity of the person would require the person to hold a license or permit in accordance with any provision of title 14, HRS, or the rules adopted thereunder. (c) For purposes of this section, the following methods will satisfy the requirements of this section: (1) Cash register receipt (either by a manually operated register or by an electronic register), provided that the cash register tabulates and maintains records of total daily sales; (2) Point of sale, scanner, or other computerized method, provided that the system tabulates and maintains records of total daily sales; (3) Pre-numbered receipt book with at least an original and copy, provided that the receipts are used in numerical order, the receipt numbers are not reused, and at least one copy of all receipts is retained; or (4) Contemporaneous log maintained by the person setting forth a general description of the goods and/or services sold, as well as the total gross proceeds of each transaction, as well as a statement advising the customer of the right to obtain a receipt. For purposes of this subsection, a prominently displayed sign in the immediate vicinity of where the goods and/ or services are paid for noting that a receipt will be given upon request shall suffice to satisfy such notice requirement, provided that such sign is clearly legible and visible. (d) If the person is otherwise in compliance with title 14, HRS, at the time a fine for violation of section 231-96, HRS, is issued, the fine shall be commensurate with the violation as follows: HRS §231-95 HRS §231-96 ADMINISTRATION OF TAXES §18-231-100-01 231- 37 (Unofficial Compilation as of 12/31/2025) (1) For the first fine issued for a first offense under subsection (a)(1), the fine, or a portion thereof, may be waived at the discretion of the special enforcement section employee or other authorized department employee who issued the citation; and (2) For second and subsequent fines under subsection (a)(2), such fines shall not be waived. (e) For purposes of this section, “cash” shall include legal tender of any country, currency in whatever form, and negotiable instruments in whatever form, but shall not include charge card or debit card payments. (f) For purposes of this section, a transaction is deemed to have occurred at the time that a customer pays for the goods and/or services and the person accepts the payment, notwithstanding any rights of return or refund that the customer may have. (g) Only one citation may be issued to the person per day. Every citation issued under this section shall be considered as a separate violation. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-96) §18-231-97-01 (Reserved.) §18-231-98-01 Fine for tax avoidance price fixing.  (a) A person who sells, offers to sell, or otherwise conducts business offering a lower price to complete the transaction when paid for in cash than by any other payment means shall be fined $2,000; provided that if the person is a cash-based business, the fine shall be $3,000. (b) It shall not be an offense under this section if the person can establish a legitimate business purpose for such differentiation. For example, a legitimate business purpose exists if some fee or cost that is associated with the alternative means of payment (including, but not limited to, credit or debit card merchant fees) is not present when payment is made in cash, provided that the discount offered does not exceed the amount of such fee or cost. (c) For purposes of this section, “cash” shall include legal tender of any country, currency in whatever form, and negotiable instruments in whatever form, but shall not include charge card or debit card payments. (d) Only one citation may be issued to the person in any thirty day period, and only one citation may be issued per incidence of sale or offer in violation of this section. Every citation issued under this section shall be considered as a separate violation. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-98) §18-231-99-01 (Reserved.) §18-231-100-01 Fine for interference with a tax official.  (a) A person who intentionally interferes with, hinders, obstructs, prevents, or impedes any investigator, auditor, collector, or other employee of the department from obtaining license information, books, records, articles, or items of business transacted, or other information or property rightfully entitled to the department shall be subject to a fine of $2,000. (b) No citation shall issue for any conduct that is constitutionally protected. (c) In any proceeding under this section, it shall be an absolute defense that the person acted with good cause. For purposes of this section, good cause shall mean a situation where: (1) The person’s intent was to comply with the law; (2) The person acted in a reasonable manner; and (3) There was a significant mitigating factor such as, but not limited to, the person not knowing he or she was interfering with, hindering, obstructing, preventing, or impeding the investigator, auditor, collector or other employee of the department. (d) A citation may be issued to the person for each incident that constitutes intentionally interfering with, hindering, obstructing, preventing, or impeding of any investigator, auditor, collector, or other employee of the department which prevents such investigator, auditor, collector, or other employee of the department from obtaining license information, books, records, articles, or items of business transacted, or other information or property to which the department was rightfully entitled. Every citation issued under this section shall be considered as a separate violation. [Eff 11/30/14] (Auth: HRS §231-3(9)) (Imp: HRS §231-100) HRS §231-98 HRS §231-100 ADMINISTRATION OF TAXES 231- 38 (Unofficial Compilation as of 12/31/2024) [THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]