Hawaii Revised Statutes

Haw. Rev. Stat. § 231-23 (2026)

Adjustments and refunds

✓ current as of July 2026

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§231-23 Adjustments and refunds. (a) This subsection shall apply to all taxes except those collected under chapter 247 and those collected under a chapter containing a provision for credit and refund of the amount of tax paid in excess of the tax imposed by such chapter. As to all tax payments for which a refund or credit is not authorized by this subsection (including without prejudice to the generality of the cases of unconstitutionality hereinafter mentioned in [paragraph] (1)(C)) the remedies provided by appeal or under section 40-35 are exclusive.

(1) If the amount already paid exceeds that which should have been paid under the chapter imposing a particular tax, or if the amount already paid results in duplication of payment in whole or in part, the excess so paid shall be refunded in the manner provided in subsection (c) subject however to the following limitations:

(A) No refund shall be made unless an application for the refund shall have been made within five years after the amount to be refunded was paid;

(B) No recourse may be had except under section 40-35 or by appeal for refunds of taxes paid pursuant to an assessment by the director of taxation, provided that if the assessment by the director shall contain clerical errors, transposition of figures, typographical errors, and errors in calculation or if there shall be an illegal or erroneous assessment, the usual refund procedures shall apply; or

(C) No refund or overpayment credit shall be made unless the original payment of the tax was due to the law having been interpreted or applied in respect of the taxpayer concerned differently than in respect of taxpayers generally.

(2) In any case where a taxpayer is entitled to a refund, the taxpayer, at the taxpayer's election, may apply the amount of the refund as an overpayment credit to taxes subsequently accruing under the same chapter as that under which the refundable amount was collected.

(b) This subsection shall apply to the taxes collected under chapter 247.

There may be refunded in the manner provided in subsection (c) such conveyance tax as has been erroneously or unjustly paid.

(1) All refunds shall be paid only upon a form to be known as a "refund voucher" prepared by the collector. The refund vouchers shall set forth all the details of each transaction, shall be approved by the director, and shall be forwarded to the comptroller from time to time. The comptroller shall issue a warrant, in the form prescribed by section 40-52, for the payment of any such refund out of the tax reserve fund hereinafter created; provided that if the person entitled to the refund is delinquent in the payment of any tax, the comptroller, upon demand of the collector and after notice to the delinquent taxpayer, shall withhold the amount of the delinquent taxes, together with penalties and interest thereon, from the amount of the refund and pay the same to the collector.

(2) There is hereby appropriated, from the general revenues of the State not otherwise appropriated, the sum of $25,000 which shall be set aside as a trust fund to be known as the tax reserve fund. All refunds of taxes collected by the department under chapters of the law under title 14 administered by the department shall be made out of the tax reserve fund. The director of taxation, from time to time, may deposit taxes collected under chapters of the law under title 14 administered by the department in the state treasury to the credit of the tax reserve fund so that there may be maintained at all times a fund not exceeding $25,000. The amounts deposited shall be made from the taxes with respect to which a particular refund is made.

(d) This subsection shall apply to a refund for an overpayment of a tax:

(1) If the tax return as filed by a taxpayer shows the amount already paid exceeds the amount determined to be the correct amount of the tax due, whether or not the tax was paid by installments, and the taxpayer requests a refund of the overpayment, the amount of the overpayment shall be refunded in the manner provided in subsection (c) within ninety days of the due date of the tax return or the date the tax return is filed, whichever is later; provided that interest on the overpayment shall be paid:

(A) To the taxpayer if the amount overpaid is not refunded within ninety days; and

(B) At the rate of one-third of one per cent of the refund amount for each month or fraction thereof after the ninety-day period, until the refund and any applicable interest is paid to the taxpayer;

(2) If any overpayment of taxes results or arises from:

(A) The taxpayer filing an amended return; or

(B) A determination made by the director; and

the overpayment is not shown on the original return as filed by the taxpayer, the amount overpaid shall be refunded to the taxpayer within ninety days from the due date of the original return or the date the overpayment is discovered under subparagraphs (A) or (B), whichever occurred later; provided that interest shall be paid to the taxpayer if the amount overpaid is not refunded within ninety days and at the rate of one-third of one per cent of the refund amount for each month or fraction thereof after the ninety-day period, until the refund and any applicable interest is paid to the taxpayer;

(3) For purposes of a net income tax return, if any overpayment of any taxes results from a carryback of a net operating loss, the overpayment shall be deemed to have been made at the close of the taxable year in which the net operating loss arises. To the extent that the carryback of net operating loss results in reducing the amount of underpayment of taxes for prior taxable year or years, interest that would be chargeable because of the underpayment shall not be applicable with respect to that amount or amounts that are carried back; and

(4) In the case of credit, interest shall be paid in the same manner as paragraph (1). [L 1939, c 213, §1; RL 1945, §5130; am L 1949, c 205, §1; RL 1955, §115-28; am L 1957, c 152, §1; am L Sp 1959 2d, c 1, §16; am L 1963, c 45, §1(c); am L 1966, c 10, §3; am L 1967, c 134, §2; HRS §231-23; am L 1968, c 32, §3; am L 1971, c 10, §1; am L 1972, c 200, §5; am L 1974, c 12, §1; am L 1983, c 217, §6; am L 1985, c 16, §5; gen ch 1985; am L 1986, c 340, §5; am L 1989, c 14, §4(4); am L 1991, c 136, §1 and c 263, §8; am L 1992, c 102, §1; am L 1995, c 66, §8; am L 2003, c 135, §2; am L 2009, c 40, §1; am L 2010, c 171, §1]

Case Notes

Mentioned with respect to applicable period for bringing action for refund of general excise taxes. 53 H. 1, 486 P.2d 396 (1971).

Prohibits original actions by insurers to recover moneys paid to State without protest under §431-318. 5 H. App. 122, 678 P.2d 1104 (1984).

Notes of Decisions

Cited in 10 cases (2 in the last 5 years), 1958–2024 · leading case: Hawaiian Airlines, Inc. v. State of Hawaii Dep't of Taxation, 716 P.2d 1138 (Haw. 1986).

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Hawaiian Airlines, Inc. v. State of Hawaii Dep't of Taxation, 716 P.2d 1138 (Haw. 1986). · cites it 7× “But Hawaiian views the five-year limitation in HRS § 231-23(b) as controlling and maintains it is entitled to the refund of payments made in the foregoing years since its amended returns were filed on September 15, 1978, and the Director insists the situation at hand is governed…”

In Re the Tax Appeal of Valley of the Temples Corp., 533 P.2d 1218 (Haw. 1975). · cites it 6× “Under Chapter 231 adjustments in the assessment lists may be made “on account of duplicate assessments and clerical errors, such as transposition in figures, typographical errors, and errors in calculations,” HRS § 231-23(a) (Supp. 1974), but no claim is made by the State that…”

Oceanic Found. v. Kondo, 486 P.2d 396 (Haw. 1971). · cites it 4× “Oceanic contends that the applicable statutory period is the 5-year limitation of HRS § 231-23, not the 30-day limitation of HRS § 40-35.”

State v. Gager, 370 P.2d 739 (Haw. 1962). · cites it 2× “1955, § 231-23. "[T]he judge is authorized in criminal cases to make *495 such comment on the evidence and the testimony and credibility of any witness as in his opinion is necessary for the proper determination of the case.”

Aetna Life Ins. v. Park, 678 P.2d 1104 (Haw. App. 1984). · cites it 2× “Section 231-23(b), HRS (1976), states as follows: (b) This subsection shall apply to all taxes except those collected under chapters 246 [real property tax law] and 247 [conveyance tax law] and those collected under a chapter containing a provision for credit and refund of the…”

Tax Appeal of Grace Bus. Dev. Corp. v. Kamikawa, 994 P.2d 591 (Haw. App. 1999). · cites it 2× “” The State points out that all tax appeals commenced in the Tax Appeal Court are governed by chapter 232, and that HRS § 231-23 limits taxpayer refund claims to the remedies exclusively provided by chapter 232 and HRS § 40-35.”

In re the Tax Appeal of Otis Elevator Co., 566 P.2d 1091 (Haw. 1977). “a further tax on the activity of the manufacturer as the manufacturer or as a wholesaler, and not as a retailer, there shall be no tax, provided, that if the wholesaler, jobber, or manufacturer is also engaged in business as a retailer (so classed under chapter 237), paragraph…”

Territory of Hawaii v. Josiah, 42 Haw. 367 (Haw. 1958). “1945 (now section 231-23, R. L. H. 1955) reads as follows: “Charge of court to jury; comment in criminal cases.”

In Re: Tax Appeal of Hawaiian Airlines, Inc. v. Dep't of Taxation (Haw. 2024). · cites it 2× “On page 36, footnote 13 shall be corrected to read as follows with underlined material added: It was also pointed out at oral argument, however, that while the State could owe interest of four percent on taxes refunded to taxpayers, HRS § 231-23(d)(1)(B), taxpayers could owe…”

In Re: Tax Appeal of Hawaiian Airlines, Inc. v. Dep't of Taxation. ICA s.d.o., filed 03/15/2024 [ada], 154 Haw. 48. Motion for Reconsideration, filed 03/25/2024. ICA Order Denying Motion for Reconsideration, filed 04/01/2024 [ada]. Application for Writ of Certiorari, filed 05/13/2024. S.Ct. Order Accepting Application for Writ of Certiorari, filed 07/08/2024 [ada]. (Haw. 2024). “[I]f the claim is for the recovery of taxes paid under protest by the claimant, the rate of interest and the overpayment of taxes shall be refunded in the manner provided in section 231-23(c) and (d). . . . If judgment is rendered against the claimant, the amount of money paid…”

— Haw. Rev. Stat. § 231-23(a) — 1 case

In Re the Tax Appeal of Valley of the Temples Corp., 533 P.2d 1218 (Haw. 1975). “Under Chapter 231 adjustments in the assessment lists may be made “on account of duplicate assessments and clerical errors, such as transposition in figures, typographical errors, and errors in calculations,” HRS § 231-23(a) (Supp. 1974), but no claim is made by the State that…”

— Haw. Rev. Stat. § 231-23(b) — 2 cases

Hawaiian Airlines, Inc. v. State of Hawaii Dep't of Taxation, 716 P.2d 1138 (Haw. 1986). “But Hawaiian views the five-year limitation in HRS § 231-23(b) as controlling and maintains it is entitled to the refund of payments made in the foregoing years since its amended returns were filed on September 15, 1978, and the Director insists the situation at hand is governed…”

Aetna Life Ins. v. Park, 678 P.2d 1104 (Haw. App. 1984). “Section 231-23(b), HRS (1976), states as follows: (b) This subsection shall apply to all taxes except those collected under chapters 246 [real property tax law] and 247 [conveyance tax law] and those collected under a chapter containing a provision for credit and refund of the…”

— Haw. Rev. Stat. § 231-23(c) — 1 case

— Haw. Rev. Stat. § 231-23(d) — 1 case

— Haw. Rev. Stat. § 231-23(d)(1)(B) — 1 case

In Re: Tax Appeal of Hawaiian Airlines, Inc. v. Dep't of Taxation (Haw. 2024). “On page 36, footnote 13 shall be corrected to read as follows with underlined material added: It was also pointed out at oral argument, however, that while the State could owe interest of four percent on taxes refunded to taxpayers, HRS § 231-23(d)(1)(B), taxpayers could owe…”

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