Question: Regarding the tax liens on cars, is that only for unpaid vehicle taxes? Is there a minimum amount you have to owe before the state does this?
Answer: No and no. Gary H. Yamashiroya, spokesperson for the state Department of Taxation, emailed more information about tax liens and encumbrances that can prevent a person from renewing their motor vehicle registration, which we had written about April 2 (808ne.ws/3mhJCzh). Yamashiroya’s response answers your questions as well as questions from other readers:
“The State of Hawaii Department of Taxation (DOTAX), similar to IRS and other lien holders, has the ability to attach a lien to delinquent taxpayers’ motor vehicles and vessels and occasionally does so on a case-by-case basis. While a vehicle or vessel lien would prevent the owner from renewing his/her/their vehicle/ vessel registration, taxpayers are encouraged to pay off their tax delinquency or contact DOTAX to arrange a suitable payment plan. Once the delinquency is paid in full or a payment plan is arranged, taxpayers will be able to renew, register, or transfer ownership of the vehicle.
“The unpaid tax does not have to relate to the subject vehicle or vessel. Also, while there is no minimum dollar amount before such a lien is issued, DOTAX issues such liens only if other attempts to collect on the tax delinquency have been exhausted. DOTAX encourages taxpayers to access its website at hitax.hawaii.gov to check their tax records, to make a payment, to arrange a payment plan, or to contact DOTAX.
“Before purchasing a used car from a private seller, DOTAX encourages prospective buyers to check the vehicle lien status. To do this, check with your local DMV. Some DMV websites allow you to complete online lien searches using the vehicle’s identification number, or VIN. Example: Honolulu Motor Vehicle Inquiry at mvinquiry.hnl.info/title.”
To use the online tool, input the vehicle’s license plate number and the last four digits of its vehicle identification number. Information is available for automobiles, mopeds, motorcycles and trailers.
When it comes to person-to-person vehicle sales, as opposed to on car lots, Honolulu’s Department of Customer Services recommends that the “buyer and seller go together in person to transfer the vehicle title and registration (buyer) and submit notice of transfer (seller).” It spells out the process at 808ne.ws/43mQjQZ.
Other readers asked where they could read the “tax lien and encumbrance record,” which lists notices for delinquent federal, state and county taxes, and other legal orders, as required by state law. Depending on the lien, it might show up in DMV records as a “stopper” that prevents the car’s registration from being renewed, as the reader in the April 2 column had learned.
Harold Nedd, a spokesperson for Honolulu’s Department of Customer Services, said the public record known as the “lien file” is kept as a hard copy at the Motor Vehicle Registration Branch’s administrative office on the second floor of Kapalama Hale, 925 Dillingham Blvd. This hard file is not kept at a driver’s license center or satellite city hall, he said.
Mahalo
During my daily walks for exercise, I notice that some drivers and/or passengers, after alighting from their parked cars, drop their trash into the gutters. Auwe! I can recall back in the 1960s, some companies would hand out small plastic litter bags, with their logo on them, which could be hung from the cars’ dashboards to collect trash, to be dumped later at home, and the bags reused again. Wouldn’t it be nice if companies nowadays could provide the same public service by providing small, eco-friendly bags bearing their logos? Mahalo! — E.M.K.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.