Bill Text: HI SB1099 | 2024 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2024-05-29 - Act 030, 05/28/2024 (Gov. Msg. No. 1130). [SB1099 Detail]
Download: Hawaii-2024-SB1099-Amended.html
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THE SENATE |
S.B. NO. |
1099 |
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THIRTY-SECOND LEGISLATURE, 2023 |
S.D. 1 |
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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 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) 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.
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.
(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 until December 31, 2030, 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 January 1, 2018.
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. 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
[March 31, 2019;] July 1, 2024; and
(3) No county surcharge on state tax that may be authorized under this subsection shall be levied prior to January 1, 2019, or after December 31, 2030.
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, 2019, [or] January 1, 2020, or January
1, 2025, as applicable pursuant to sections 237-8.6 and 238-2.6, 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) 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 surcharge revenues received from the State for capital costs of a locally preferred alternative for a mass transit project; provided that revenues derived from the county surcharge on state tax shall not be used:
(1) To build or repair public roads or highways, bicycle paths, or support public transportation systems already in existence prior to July 12, 2005;
(2) For operating costs or maintenance costs of the mass transit project or any purpose not consistent with this subsection; or
(3) For administrative or operating, marketing, or maintenance costs, including personnel costs, of a rapid transportation authority charged with the responsibility for constructing, operating, or maintaining the mass transit project;
provided further that nothing in this section shall be construed to prohibit a county from using county funds that are not derived from a surcharge on state tax for a purpose described in paragraph (2) or (3).
(f) Each county [with] having a
population equal to or less than five hundred thousand that adopts a county
surcharge on state tax ordinance pursuant to this section prior to
January 1, 2023, 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)[.];
and
(3) Affordable
and workforce housing infrastructure to provide housing for households having
incomes of not more than one hundred forty per cent of the area median income,
as determined by the United States Department of Housing and Urban Development;
provided that a county that uses surcharge revenues for affordable housing shall
not pass on related infrastructure costs to the developer of a housing project
that sells or rents its housing units to households having incomes of not more
than one hundred forty per cent of the area median income;
provided
that each county having a population equal to or less than five hundred
thousand that adopts a county surcharge on state tax ordinance pursuant to this
section after December 31, 2022, shall use the surcharges received from the
State only for the purposes described in paragraph (3).
(g) Each county that adopts a county surcharge on
state tax ordinance pursuant to this section may use the surcharges received
from the State for housing infrastructure, including roadways, water, and
sewer.
[(g)]
(h) 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 237-8.6, 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 pursuant to section 46-16.8 shall be levied beginning in
a 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;
(B) January 1, 2019, if the county
surcharge on state tax was established by the adoption of an ordinance after
June 30, 2015, but prior to June 30, 2018; [or]
(C) January 1, 2020, if the county
surcharge on state tax was established by the adoption of an ordinance on or
after June 30, 2018, but prior to March 31, 2019; [and] or
(D) January 1, 2025, if the county surcharge on state tax was established by the adoption of an ordinance on or after March 31, 2019, but prior to July 1, 2024; and
(2) After December 31, 2030."
SECTION 3. 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 a 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;
(B) January 1, 2019, if the county
surcharge on state tax was established by the adoption of an ordinance after
June 30, 2015, but prior to June 30, 2018; [or]
(C) January 1, 2020, if the county
surcharge on state tax was established by the adoption of an ordinance on or
after June 30, 2018, but prior to March 31, 2019; [and] or
(D) January 1, 2025, if the county surcharge on state tax was established by the adoption of an ordinance on or after March 31, 2019, but prior to July 1, 2024; and
(2) After December 31, 2030."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
Report Title:
Surcharge on State Tax; Extension; Housing Infrastructure
Description:
Extends the period in which a county may adopt a surcharge on state tax, under certain conditions. Authorizes the use of the surcharge revenues for affordable and workforce housing infrastructure. Allows the counties to use surcharge revenues for housing infrastructure, including roadways, water, and sewer. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
