The Hawaii Department of Taxation (DOT) has issued an announcement detailing the various forms of tax relief available to taxpayers affected by the wildfire disasters in the counties of Maui and Hawai’i. The DOT will consider requests by adversely affected taxpayers on a case-by-case basis for extensions to file and pay Hawai’i taxes, for waivers of penalties and interest, and for relief based on interruptions to mail delivery. The tax relief applies to all taxes that the DOT administers, including general excise (sales tax), transient accommodations, net income, tobacco, and liquor.
Taxpayers who file by paper and want to request relief should clearly write “2023 Wildfire Relief” on the top center of the paper return. Taxpayers who file electronically and want to request relief should send a message at the time of filing via Hawaii Tax Online by selecting “I have a 2023 Wildfire Relief Question.” Regardless of filing method, taxpayers requesting relief should include a brief statement explaining what relief they are requesting and how the wildfire disaster adversely affected their ability to meet their tax obligations. An “adversely affected taxpayer” includes any individual, business entity, or other person who is unable to file returns or unable to make payments because of the wildfire disaster’s impact.
Amounts received under property or casualty insurance policies for damage or loss of inventory used in a trade or business located within an area declared a disaster by the governor are exempt from general excise tax (GET).
The DOT’s announcement also includes information on tax relief provisions specific to Hawaii income tax. For additional information, visit the Hawaii DOT Announcements webpage. (Announcement No. 2023-03 (Amended), Hawaii Department of Taxation, August 23, 2023)