Bill Text: HI SB2346 | 2012 | Regular Session | Introduced

Hawaii Senate Bill 2346 (Prior Session Legislation)

Introduced

Bill Title: State Fuel Tax; Vehicle Weight Tax

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-02-10 - (S) The committee on WAM deferred the measure. [SB2346 Detail]

Download: Hawaii-2012-SB2346-Introduced.html

THE SENATE	S.B. NO.	2346
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

SECTION 1. The legislature finds that increased fuel efficiency in motor vehicles has diminished the state fuel tax's effectiveness as a method of keeping the state highway fund solvent.

The purpose of this Act is to more effectively fund the state highway fund by:

(1) Increasing the vehicle weight tax; and

(2) Repealing the state portion of the vehicle fuel tax.

These changes shall become effective on January 1, 2013.

SECTION 2. Section 243-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every distributor, in addition to any other taxes provided by law, shall pay a license tax to the department of taxation for each gallon of liquid fuel refined, manufactured, produced, or compounded by the distributor and sold or used by the distributor in the State or imported by the distributor, or acquired by the distributor from persons who are not licensed distributors, and sold or used by the distributor in the State. Any person who sells or uses any liquid fuel, knowing that the distributor from whom it was originally purchased has not paid and is not paying the tax thereon, shall pay [~~such~~] the tax as would have applied to [~~such~~] the sale or use by the distributor. The rates of tax hereby imposed are as follows:

(1) For each gallon of [~~diesel oil,~~] liquid fuel sold for use in or used in small boats, as defined in section 248-8, 2 cents;

(2) For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 2 cents;

(3) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, [~~17 cents state tax, and in addition thereto such~~] an amount[,] to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;

(4) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, [~~17 cents state tax, and in addition thereto such~~] an amount[,] to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

(5) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, [~~17 cents state tax, and in addition thereto such~~] an amount[,] to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

(6) For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, [~~17 cents state tax, and in addition thereto such~~] an amount[,] to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

If it is shown to the satisfaction of the department, based upon proper records and from [~~such~~] other evidence as the department may require, that liquid fuel, other than fuel mentioned in paragraphs (1) and (2), is used for agricultural equipment that does not operate upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by this section in excess of 1 cent per gallon. The department shall adopt rules to administer [~~such~~] these refunds."

SECTION 3. Section 249-33, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4, 249-5.5, 249-6, and 249-6.5, in addition to all other fees and taxes levied by this chapter, shall be subject to an annual state vehicle weight tax.

[~~The~~] Prior to January 1, 2013, tax shall be levied by the county director of finance at the rate of 1.75 cents a pound according to the net weight of each vehicle as the "net weight" is defined in section 249-1 up to and including four thousand pounds net weight; vehicles over four thousand pounds and up to and including seven thousand pounds net weight shall be taxed at the rate of 2.00 cents a pound; vehicles over seven thousand pounds and up to and including ten thousand pounds net weight shall be taxed at the rate of 2.25 cents a pound; vehicles over ten thousand pounds net weight shall be taxed at a flat rate of $300.

Commencing January 1, 2013, the tax shall be levied by the county director of finance at the rate of cents a pound according to the net weight of each vehicle as the "net weight" is defined in section 249-1 up to and including four thousand pounds net weight; vehicles over four thousand pounds and up to and including seven thousand pounds net weight shall be taxed at the rate of cents a pound; vehicles over seven thousand pounds and up to and including ten thousand pounds net weight shall be taxed at the rate of cents a pound; vehicles over ten thousand pounds net weight shall be taxed at a flat rate of $ ."

SECTION 4. In order to ameliorate the financial impact of increasing the state vehicle weight tax, the State and any county or counties may establish a process to phase in the collection of the increased vehicle weight tax imposed under this Act by allowing vehicle weight taxpayers to pay the state vehicle weight tax in installments; provided that the installments occur not more frequently than quarterly in a fiscal year.

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; provided that sections 2 and 4 shall take effect on January 1, 2013.

INTRODUCED BY:	_____________________________

Report Title:

State Fuel Tax; Vehicle Weight Tax

Description:

Effective 1/1/13, increases the vehicle weight tax and repeals the state portion of the fuel tax.

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