Bill Text: HI HB1606 | 2014 | Regular Session | Introduced
Bill Title: County Surcharge on State Tax
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-17 - Referred to FIN, referral sheet 2 [HB1606 Detail]
Download: Hawaii-2014-HB1606-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1606 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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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 section shall be levied prior to January 1, 2007].
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 section 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, 2014, 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.
(c) Each county with a population greater than five hundred thousand that adopts a county surcharge on state tax ordinance pursuant to subsection (a) shall use the surcharges received from the State for:
(1) Operating or 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.]
A county with a population of five hundred thousand or less may expend the
surcharges received from the State for any purpose deemed appropriate by the
respective county.
[(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 subsection (a) 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).
(e)] (d) 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."
SECTION 2. Section 237-8.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The county surcharge on state tax,
upon the adoption of county ordinances and in accordance with the requirements
of section 46-16.8, shall be levied, assessed, and collected as provided in
this section on all gross proceeds and gross income taxable under this
chapter. No county shall set the surcharge on state tax at a rate greater than
[one-half] one per cent of all gross proceeds and gross income
taxable under this chapter. All provisions of this chapter shall apply to the
county surcharge on state tax. With respect to the surcharge, the director of
taxation shall have all the rights and powers provided under this chapter. In
addition, the director of taxation shall have the exclusive rights and power to
determine the county or counties in which a person is engaged in business and,
in the case of a person engaged in business in more than one county, the
director shall determine, through apportionment or other means, that portion of
the surcharge on state tax attributable to business conducted in each county."
SECTION 3. Section 238-2.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The county surcharge on state tax,
upon the adoption of a county ordinance and in accordance with the requirements
of section 46-16.8, shall be levied, assessed, and collected as provided in
this section on the value of property and services taxable under this chapter.
No county shall set the surcharge on state tax at a rate greater than [one-half]
one per cent of the value of property taxable under this chapter. All
provisions of this chapter shall apply to the county surcharge on state tax.
With respect to the surcharge, the director shall have all the rights and
powers provided under this chapter. In addition, the director of taxation
shall have the exclusive rights and power to determine the county or counties
in which a person imports or purchases tangible personal property and, in the
case of a person importing or purchasing tangible property in more than one
county, the director shall determine, through apportionment or other means,
that portion of the surcharge on state tax attributable to the importation or
purchase in each county."
SECTION 4. Section 248-2.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(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, 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] two 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."
SECTION 5. Act 247, Session Laws of Hawaii 2005, 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;
(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 December 31, 2022;
(B) This Act shall be repealed on
December 31, 2022; and
(C) 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]."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2014.
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INTRODUCED BY: |
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Report Title:
County Surcharge on State Tax
Description:
Repeals deadline for counties electing to establish a county surcharge on state tax to pass an ordinance to enact the surcharge. Increases maximum rate of surcharge from 0.5% to 1%. Allows counties under 500,000 population to use proceeds without restriction. Reduces the amount deducted from the county surcharge on state tax to reimburse the State for costs of assessment, collection, and disposition from 10% to 2%. Makes permanent the counties' authority to establish a surcharge on state tax.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
