Hawaii Appellate Judges Nullify Tax Court’s Liability Assessment

The Hawaii Tax Appeal Court overstepped its power by imposing a higher income tax on a couple that flouted tax liability assessments, a state appeals court said Thursday.

Blake and Blanca Goodman claimed a renewable energy income tax credit to reduce their income tax liability to about $8,000. Hawaii’s tax agency reduced the couple’s credit by 30% to adjust for erroneously filled out forms, which increased their liability to about $13,420 total. The court remanded the case back to the tax court to affirm the agency’s assessment.

But the tax court instead chose to completely revoke the credit, increasing the income tax liability ...