Bill Text: HI HB1286 | 2013 | Regular Session | Introduced

Hawaii House Bill 1286 (Prior Session Legislation)

Introduced

Bill Title: Motor Vehicle Excise Tax; Exemption; Motor Vehicle Registration; Counties

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-01-28 - Referred to TRN, FIN, referral sheet 7 [HB1286 Detail]

Download: Hawaii-2013-HB1286-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1286
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 237-24.75, Hawaii Revised Statutes, is amended to read as follows:

"§237-24.75 Additional exemptions. In addition to the amounts exempt under section 237-24, this chapter shall not apply to:

(1) Amounts received as a beverage container deposit collected under chapter 342G, part VIII;

(2) Amounts received by the operator of the Hawaii convention center for reimbursement of costs or advances made pursuant to a contract with the Hawaii tourism authority under section 201B-7[~~[; and]~~];

[[](3) Amounts received[]] by a professional employment organization from a client company equal to amounts that are disbursed by the professional employment organization for employee wages, salaries, payroll taxes, insurance premiums, and benefits, including retirement, vacation, sick leave, health benefits, and similar employment benefits with respect to assigned employees at a client company; provided that this exemption shall not apply to a professional employment organization upon failure of the professional employment organization to collect, account for, and pay over any income tax withholding for assigned employees or any federal or state taxes for which the professional employment organization is responsible. As used in this paragraph, "professional employment organization", "client company", and "assigned employee" shall have the meanings provided in section 373K-1[.]; and

(4) Amounts received by a transferor as proceeds from the sale of a non-new motor vehicle currently registered in the State of Hawaii; provided that the sale:

(A) Is not an open title transaction;

(B) Is not a transaction where less than one hundred eighty days have elapsed from the date of issuance of the certificate of ownership to the prior registered owner to the date of application for registration in the name of the new registered owner;

(D) Involves a sale by a dealer licensed to sell motor vehicles under chapter 437 and the sales transaction documents show that a tax imposed under this chapter has been paid to such dealer;

(E) Involves the transfer of a motor vehicle having a value, as determined under section 286-52, of not more than $1,000; or

(F) Involves a sale by a casual seller.

As used in this paragraph:

"Casual seller" means a person that is not required to have a license under section 237-9 and who in any calendar year transfers fewer than three motor vehicles for consideration. The establishment of casual seller status as to any transaction shall require the transferor and transferee to appear at the same time before the department of taxation.

"Non-new motor vehicle" means a motor vehicle that has at least one newer model year in operation or has been in regular use for the past one hundred eighty days and is currently registered to an individual owner.

"Open title transaction" means any transfer of an ownership interest in a motor vehicle where the transferor is neither the registered owner nor the legal owner of the motor vehicle as shown on the certificate of title.

"Transferor" means the person or entity who receives consideration for the transfer of ownership of a motor vehicle, regardless of whether the person or entity appears on the certificate of title for the motor vehicle as the registered or legal owner."

SECTION 2. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"§237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [~~and~~]

(3) A sum from all general excise tax revenues realized by the State that is equal to one-half of the total amount of funds appropriated or transferred out of the hurricane reserve trust fund under sections 4 and 5 of Act 62, Session Laws of Hawaii 2011, shall be deposited into the hurricane reserve trust fund in fiscal year 2013-2014 and in fiscal year 2014-2015; provided that the deposit required in each fiscal year shall be made by October 1 of that fiscal year[.]; and

(4) The sum from all general excise tax revenues realized by the State as a result of non-new motor vehicle sales, other than sales exempt from the tax pursuant to section 237-24.75(a)(4), shall be deposited as follows:

(A) per cent to the credit of the department of taxation;

(B) per cent to the county treasury of the county where the transaction occurs; and

SECTION 3. Section 286-52, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Upon a transfer of the title or interest of a legal owner in or to a vehicle registered under this part, the person whose title or interest is to be transferred and the transferee shall write their signatures with pen and ink upon the certificate of ownership issued for the vehicle, together with the address of the transferee in the appropriate space provided upon the certificate. As a condition of the transfer of title or interest of a legal owner, payment of the tax imposed by section 237-13(2)(A) shall be required. Notwithstanding section 237-13(2)(A) to the contrary, the tax shall be levied on the greater of the amount of:

(1) The consideration exchanged for ownership of the vehicle as shown on the notice described in subsection (j); or

(2) The retail value of the motor vehicle as shown in the Kelley Blue Book or similar authority for valuation of motor vehicles.

In lieu of payment of the tax imposed by section 237-13(2)(A), an applicant for transfer of ownership of a motor vehicle may present a certificate from the department of taxation showing that the transaction is exempt pursuant to section 237‑24.75(a)(4). The department of motor vehicles shall maintain the certificate as part of the documentation of the registration."

2. By amending subsection (j) to read:

"(j) Every person, other than a dealer, upon transferring a motor vehicle, whether by sale, lease, or otherwise, shall within ten days give notice of the transfer to the director of finance upon the official form provided by the director of finance. Every notice shall contain the date of transfer, the names and addresses of the transferor and transferee, the purchase price of the vehicle, and such description of the vehicle as may be called for in the official form. Any person who violates this subsection shall be fined not more than $100. For purposes of verification of general excise tax return filings, including the applicability of any exemption pursuant to section 237-24.75(a)(4), the department of motor vehicles of a county that receives a notice pursuant to this subsection shall provide the transferor's name and address to the department of taxation."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Motor Vehicle Excise Tax; Exemption; Motor Vehicle Registration; Counties

Description:

Exempts certain sales of non-new motor vehicles currently registered in the State from the general excise tax. Requires an unspecified percentage of the sum of all general excise tax revenues from non-exempt motor vehicle sales to be deposited with the county where the motor vehicle sale occurred. Requires a county DMV to collect the general excise tax on vehicle sales. Requires the county DMV to provide the transferor's name and address to DOTAX.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.