AI-assisted research summary: Courts must enforce certain out-of-state tax liabilities and claims, and state officials may bring collection actions in other state courts.
(a) The courts of the State shall recognize and enforce the liability for taxes lawfully imposed by the laws of any state which extends a like comity, whether by statute or case law, in respect of the liability for taxes lawfully imposed by the laws of this State. Should a claim be made in the state courts for taxes by a state whose highest court has not yet passed upon the question of enforcing extraterritorial revenue laws, the courts of the State shall enforce such claims until such time as the highest court of that state prohibits the enforcement of extraterritorial revenue laws. (b) Any and all authorized officials of a state entitled to enforce its tax claims within the state courts may bring action in the courts of this State for the collection of the taxes. The certificate of the secretary of state of such state, or of the nearest equivalent official, that such officials have the authority to collect the taxes sought to be collected by the action shall be conclusive proof of that authority. (c) The attorney general may bring action in the name of the State, or authorize action to be brought in the name of the State, in the courts of any state to collect taxes legally due the State. (d) The term "state" as used herein means any state, territory, or possession of the United States. The term "taxes" as herein employed shall include: (1) Any and all tax assessments lawfully made, whether they be based upon a return or other disclosure of the taxpayer, upon the information and belief of the taxing authority, or otherwise; (2) Any and all penalties lawfully imposed pursuant to a taxing statute; and (3) Interest charges lawfully added to the tax liability which constitutes the subject of the action. (e) In any case where a person owing delinquent taxes to the State has moved from the State to another state or country, is situated in another state or country, resides, or maintains a place of business in another state or country, the director, notwithstanding any other law to the contrary, by contract, may select and retain bonded collection agencies, licensed attorneys, accountants, and auditors or other persons to pursue and collect the claims of the State. (f) At the option of the director, any contract entered into under this section may provide for compensation on: (1) A fixed price basis; (2) An hourly rate basis with or without a fixed cap; or (3) A contingent fee arrangement to be specified in the contract; provided that this paragraph shall not apply to auditors and accountants. All compensation shall be payable out of the taxes recovered for the State or from the debtor in accordance with the terms of, and up to the amounts authorized by the contract, unless otherwise determined by the director. (g) Suits brought upon judgments shall be governed by the law relating thereto, and not by this section. [L 1949, c 311, §1(a); am L 1953, c 67, §1; RL 1955, §115-31; am L Sp 1959 2d, c 1, §16; HRS ; gen ch 1985; am L 1997, c 253, §2; am L 1999, c 68, §2]