Tax Court Jurisdiction

• Publication year: 2019
• Citation: Vol. 23 No. 07

Tax Court Jurisdiction

[Page 8]

by Cynthia M. Johiro

The right to appeal is "purely statutory and ... therefore, the right to appeal is limited as provided by the legislature and compliance with the method and procedure prescribed is obligatory." In re Tax Appeal of Lower Ma-punapuna Tenants Assn., 73 Haw. 63, 69, 828 P.2d 263, 266 (1992) quoting In re Taxes, Kenneth K. Kobayashi, 44 Haw. 584, 593, 358 P.2d 539, 544 (1961). The legislature is empowered to limit or curtail the right to appeal and to prescribe the mode and time of invoking jurisdiction to the court with rules of practice to be applied in its exercise. Collection Corp., Ltd. v. Anami, 33 Haw. 911, 913 (1936). Without jurisdiction, a court is not in a position to consider the case further. Wong v. Wong, 79 Hawaii 26, 29, 897 P.2d 953, 956 (1995). A judgment rendered by a court without subject matter jurisdiction is void. Id. Jurisdiction cannot be conferred by agreement of the parties. Id. Subject matter jurisdiction may not be waived. Public Access Shoreline Hawaii v. Hawaii County Planning Comm'n., 79 Hawaii 425, 431, 903 P2d 1246, 1252 (1995).

Boards of Review

Administrative Boards of Taxation Review (the "Boards") are established in each of the taxation districts pursuant to Haw. Rev. Stat. §§ 26-10(d) and 232-6. The Boards for each of the four Taxation Districts of Oahu, Maui, Kauai, and Hawaii Island meet to informally hear and decide disputes between taxpayers and the tax assessor as an alternative to filing a formal appeal with the Hawaii Tax Appeals Court. The Boards may hear cases on a broad range of issues except for matters involving the United States Constitution or the laws of the United States. Because of the informal nature of the hearings, taxpayers often make their arguments to the Boards without having an attorney, no transcripts of the proceedings are made, and the decisions are not published.¹

Either the taxpayer or the Department may appeal a Board decision to the Tax Appeals Court. However, if the taxpayer is appealing an adverse decision of the Board, the taxpayer must pay the assessed tax, penalty, and interest before filing the appeal.

Each board consists of five members who are appointed by the Governor and confirmed by the Senate for four-year terms. Members must reside in the same district as the Board to which the member is appointed. For their service, Board members receive a nominal $10 for each day they attend plus travel expenses. See Department of...