AI-assisted research summary: The director of finance must keep a tax lien and encumbrance record and enter specified lien, seizure, order, and release notices in it.
(a) The director of finance shall keep a book or record to be known as the "tax lien and encumbrance record" in which the following information shall be entered: (1) Notices of liens for internal revenue taxes payable to the United States and certificates of release thereof; (2) Notices of liens, taxes, or judgments payable to the State or county and certificates of release thereof; (3) Notices of seizure in accordance with law of any registered motor vehicle upon any writ of attachment, execution, or other process issued under authority of law; (4) Notices of restraining order or other order affecting the registration of any registered motor vehicle; (5) Notice of any proceeding or action affecting the title of a registered motor vehicle or the interest of the owner or legal owner thereof; and (6) Notice of release of any of the foregoing. (b) With the exception of delinquent taxes and penalties imposed by section 249-10, the record shall show the year, month, day, hour, and minute at which the notice has been filed with the director of finance, shall show the nature and kind of lien or encumbrance claimed, the amount of tax or other claim, with interest, penalties, and costs, and shall identify the registered motor vehicles affected by the lien or encumbrance, and shall contain such further information as the director of finance may require. The record shall be a public record and may be arranged in such manner as the director of finance determines. The interest of the owner or the legal owner in the motor vehicle shall not be deemed to be affected until the notice referred to in subsection (a)(1) to (5) has been filed with the director of finance in such form as the director of finance shall prescribe for entry in the tax lien and encumbrance record; provided the director of finance may require the payment of delinquent taxes and penalties as a condition precedent to the vehicle's renewal, registration, or transfer of ownership; provided further that a taxpayer may enter into a payment plan with the director of taxation in lieu of paying a tax delinquency in full, in which case an entry in the tax lien and encumbrance record shall be avoided. The director of finance shall charge a fee of $5 for each entry made in the tax lien and encumbrance record, which shall be deposited in the general fund; provided that state and county agencies shall not be charged a fee for any entry made in the tax lien and encumbrance record if the state or county agency provides to the director of finance the license plate number or vehicle identification number of the vehicle to be flagged. Nothing in this section shall be deemed to alter or amend any statute relating to tax liens or the enforcement thereof. [L 1949, c 164, §1; RL 1955, §160-6; HRS ; am L 1969, c 98, §1; am L 1993, c 151, §2; am L 1995, c 164, §3; am L 2012, c 67, §2]