Bill Text: HI HB1353 | 2018 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB1353 Detail]
Download: Hawaii-2018-HB1353-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1353 |
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TWENTY-NINTH LEGISLATURE, 2017 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 46-16.8, Hawaii Revised Statutes, is amended to read as follows:
"§46-16.8 County surcharge on state
tax. (a) Each county may establish a surcharge on state tax at the rates
enumerated in sections 237-8.6 and 238-2.6. A county electing to establish
this surcharge shall do so by ordinance; provided that[:
(1) No] no ordinance shall be
adopted until the county has conducted a public hearing on the proposed
ordinance[;
(2) The ordinance shall be adopted prior to
December 31, 2005; and
(3) No county surcharge on state tax that
may be authorized under this subsection shall be levied prior to January 1,
2007, or after December 31, 2022, unless extended pursuant to subsection (b)].
Notice of the public hearing required under [paragraph
(1)] this subsection shall be published in a newspaper of general
circulation within the county at least twice within a period of thirty days
immediately preceding the date of the hearing.
(b) A county electing to exercise the
authority granted under this subsection shall notify the director of taxation
within ten days after the county has adopted a surcharge on state tax ordinance,
and[, beginning no earlier than January 1, 2007,] the director of
taxation shall levy, assess, collect, and otherwise administer the county
surcharge on state tax[.]; provided that for any ordinance that is
adopted after July 1, 2017, pursuant to this section, the director of taxation
shall not levy, assess, collect, or otherwise administer the county surcharge
on state tax earlier than January 1 of the year succeeding the adoption of the
authorizing ordinance.
[(b) Each county that has established a
surcharge on state tax prior to [July 1, 2015,] under authority of subsection
(a) may extend the surcharge from January 1, 2023, until December 31, 2027, at
the same rates. A county electing to extend this surcharge shall do so by
ordinance; provided that:
(1) No ordinance shall be adopted until the
county has conducted a public hearing on the proposed ordinance; and
(2) The ordinance shall be adopted prior to
July 1, 2016, but no earlier than July 1, 2015.
A county electing to exercise the authority
granted under this subsection shall notify the director of taxation within ten
days after the county has adopted an ordinance extending the surcharge on state
tax. Beginning on January 1, 2023, the director of taxation shall levy,
assess, collect, and otherwise administer the extended surcharge on state tax.
(c) Each county that has not established a
surcharge on state tax prior to [July 1, 2015,] may establish the surcharge at
the rates enumerated in sections 237-8.6 and 238-2.6. A county electing to
establish this surcharge shall do so by ordinance; provided that:
(1) No ordinance shall be adopted until the
county has conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted prior to
July 1, 2016, but no earlier than July 1, 2015; and
(3) No county surcharge on state tax that
may be authorized under this subsection shall be levied prior to January 1,
2018, or after December 31, 2027.
A county electing to exercise the authority
granted under this subsection shall notify the director of taxation within ten
days after the county has adopted a surcharge on state tax ordinance.
Beginning on January 1, 2018, the director of taxation shall levy, assess, collect,
and otherwise administer the county surcharge on state tax.
(d) Notice of the public hearing required
under subsection (b) or (c) before adoption of an ordinance establishing or
extending the surcharge on state tax shall be published in a newspaper of
general circulation within the county at least twice within a period of thirty
days immediately preceding the date of the hearing.
(e)] (c) Each county with a
population greater than five hundred thousand that adopts [or extends] a
county surcharge on state tax ordinance pursuant to subsection (a) [or (b)]
shall use the surcharges received from the State for:
(1) Capital costs of a locally preferred alternative for a mass transit project; and
(2) Expenses in complying with the Americans with Disabilities Act of 1990 with respect to paragraph (1).
The county surcharge on state tax shall not be used to build or repair public roads or highways, bicycle paths, or support public transportation systems already in existence prior to July 12, 2005.
[(f)] (d) Each county with a
population equal to or less than five hundred thousand that adopts a county
surcharge on state tax ordinance pursuant to this section shall use the
surcharges received from the State for:
(1) Operating or capital costs of public transportation within each county for public transportation systems, including public roadways or highways, public buses, trains, ferries, pedestrian paths or sidewalks, or bicycle paths; and
(2) Expenses in complying with the Americans with Disabilities Act of 1990 with respect to paragraph (1).
[(g)] (e) As used in this
section, "capital costs" means nonrecurring costs required to
construct a transit facility or system, including debt service, costs of land
acquisition and development, acquiring of rights-of-way, planning, design, and
construction, and including equipping and furnishing the facility or system.
For a county with a population greater than five hundred thousand, capital
costs also include non-recurring personal services and other overhead costs
that are not intended to continue after completion of construction of the
minimum operable segment of the locally preferred alternative for a mass
transit project."
SECTION 2. Section 238-2.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Each county surcharge on state tax
that may be adopted [or extended] shall be levied beginning in the
taxable year after the adoption of the relevant county ordinance[; provided
that no surcharge on state tax may be levied:
(1) Prior to:
(A) January 1, 2007, if the county
surcharge on state tax was established by an ordinance adopted prior to
December 31, 2005; or
(B) January 1, 2018, if the county
surcharge on state tax was established by the adoption of an ordinance after
June 30, 2015, but prior to July 1, 2016; and
(2) After December 31, 2027]."
SECTION 3. Section 248-2.6, Hawaii Revised Statutes, is amended to read as follows:
1. By amending subsection (a) to read:
"(a) If adopted by county ordinance, all
county surcharges on state tax collected by the director of taxation shall be
paid into the state treasury [quarterly,] monthly, within ten
working days after collection, and shall be placed by the director of finance
in special accounts. Out of the revenues generated by county surcharges on
state tax paid into each respective state treasury special account, the
director of finance shall deduct ten per cent of the gross proceeds of a
respective county's surcharge on state tax to reimburse the State for the costs
of assessment, collection, and disposition of the county surcharge on state tax
incurred by the State. Amounts retained shall be general fund realizations of
the State."
2. By amending subsection (d) to read:
"(d) After the deduction and withholding
of the costs under subsections (a) and (b), the director of finance shall pay
the remaining balance on [[]a[]] quarterly] monthly
basis to the director of finance of each county that has adopted a county
surcharge on state tax under section 46-16.8. The [quarterly] monthly
payments shall be made after the county surcharges on state tax have been paid
into the state treasury special accounts or after the disposition of any tax
appeal, as the case may be. All county surcharges on state tax collected shall
be distributed by the director of finance to the county in which the county
surcharge on state tax is generated and shall be a general fund realization of
the county, to be used for the purposes specified in section 46-16.8 by each of
the counties."
SECTION 4. Act 247, Session Laws of Hawaii 2005, as amended by section 7 of Act 240, Session Laws of Hawaii 2015, is amended by amending section 9 to read as follows:
"SECTION 9. This Act shall take effect upon its approval; provided that:
(1) If none of the counties of the State adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, this Act shall be repealed and section 437D-8.4, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act;
(2) If any county does not adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, it shall be prohibited from adopting such an ordinance pursuant to this Act, unless otherwise authorized by the legislature through a separate legislative act; and
(3) If an ordinance to levy a county surcharge on
state tax is adopted by December 31, 2005[:
(A) The ordinance shall be repealed
on December31, 2022; provided that the], the repeal of the ordinance
shall not affect the validity or effect of an ordinance to extend a surcharge
on state tax adopted pursuant to Act 240, Session Laws of Hawaii 2015[;
(B) This Act shall be repealed on
December 31, 2027; and
(C) Section 437D-8.4, Hawaii Revised
Statutes, shall be reenacted in the form in which it read on the date prior to
the effective date of this Act; provided that the amendments made to section
437D-8.4, Hawaii Revised Statutes, by Act 226, Session Laws of Hawaii 2008, as
amended by Act 11, Session Laws of Hawaii 2009, and Act 110, Session Laws of
Hawaii 2014, shall not be repealed.]"
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.
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INTRODUCED BY: |
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Report Title:
Taxation; General Excise Tax; Counties
Description:
Extends each county's authority to establish and collect a surcharge on state general excise and use taxes. Requires a county's share of the county surcharge on state tax to be paid to the county on a monthly basis. Deletes the repeal date for Act 247, Session Laws of Hawaii 2005, authorizing counties to levy a surcharge to fund public transportation systems.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
