Section 18-231-3-14.16 - Cancellation of licenses; placement on inactive status(a) As used in this section: "Annual return" means a tax return required to be filed under section 237-33, 237D-7, or 251-6, HRS.
"License" means a license issued under chapter 237, HRS, or a certificate of registration issued under chapter 237D or 251, HRS.
"Licensee" means the person to whom a license has been issued.
"Periodic return" means a tax return required to be filed under section 237-30, 237D-4, or 251-3, HRS.
(b) Any person who goes out of business or otherwise ceases to engage in activity for which the person was licensed, or who transfers ownership of a business, shall notify the district tax office to which the person reports by cancelling the license on a form prescribed by the department not more than ten days after the transfer of ownership or the cessation of activity. As used in this section, a transfer of ownership means that the business is conducted by a different person or company. A transfer of ownership occurs, for example, if a sole proprietorship is changed to a partnership or corporation. A licensee shall return the license to the department with the notice of cancellation.(c) A licensee that discontinues its business activity temporarily may request in writing that its license be placed on inactive status.(1) Any request for inactive status shall include the licensee's agreement that the licensee must request reactivation of the license and file a periodic return if the licensee later derives any income from business activity.(2) The director may grant the request for inactive status for a period not to exceed two years, and upon request may extend the inactive status of a license for additional periods of no more than two years each, if the director is satisfied that the interests of the State will not be jeopardized.(3) If the request is granted, the director shall inform the licensee of the effective date. The director shall return a license on inactive status to active status upon a licensee's written request.(d) Cancellation of a license, or placement of a license on inactive status, shall have no effect on liability for payment of taxes, fees, penalties, or interest incurred or imposed.Haw. Code R. § 18-231-3-14.16
[Eff 6/18/94] (Auth: HRS §§ 231-3(9)) (Imp: HRS §§ 231-3(14), 237-9, 237D-4, 251-3)