Bill Text: HI HB68 | 2018 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB68 Detail]
Download: Hawaii-2018-HB68-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
68 |
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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. The environmental response tax, enacted in 1993, sought to create a balance between the economic benefits derived from the import of petroleum products into the State and the potential detriments such import may have on the State's natural environment. Specifically, revenues generated by the levy of the environmental response tax were to be held and expended by the State for oil spill planning, prevention, preparedness, and education, and to address potential problems created by the usage of underground fuel storage tanks.
In 2010, the rate of the environmental response tax, now popularly known as the "barrel tax," was increased and its uses were expanded to address the State's severe reliance on imported commodities such as fuel and food. A new distribution of barrel tax revenues was established to include funding for clean energy and environmental protection initiatives, as well as programs aimed at agricultural production and food sustainability research. Along with the funds directed to these initiatives and programs, a significant amount of barrel tax revenues are also directed to the general fund. These general fund amounts have historically been greater than the sum total of funds directed for clean energy, environmental protection, and food sustainability purposes.
With a state budget surplus of approximately $1,000,000,000 at the end of the 2016 fiscal year, the State must reprioritize the usage of state funds to address the clean energy, environmental protection, and food sustainability issues that still plague Hawaii.
The purpose of this Act is to reallocate barrel tax revenues to better meet the clean energy, environmental protection, and food sustainability purposes for which the tax was originally established.
SECTION 2. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner. The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:
(1) [5 cents] 11
per cent of the tax on each barrel shall be deposited into the
environmental response revolving fund established under section 128D-2;
(2) [15 cents] 33
per cent of the tax on each barrel shall be deposited into the energy
security special fund established under section 201-12.8;
(3) [10 cents] 23
per cent of the tax on each barrel shall be deposited into the energy
systems development special fund established under section 304A-2169.1; and
(4) [15 cents] 33
per cent of the tax on each barrel shall be deposited into the agricultural
development and food security special fund established under section 141-10.
The tax imposed by this subsection shall be paid by the distributor of the petroleum product.
(b) In addition to subsection (a), the tax shall also be imposed on each one million British thermal units of fossil fuel sold by a distributor to any retail dealer or end user, other than a refiner, of fossil fuel. The tax shall be 19 cents on each one million British thermal units of fossil fuel; provided that of the tax collected pursuant to this subsection:
(1) [4.8] 11
per cent of the tax on each one million British thermal units shall be
deposited into the environmental response revolving fund established under
section 128D-2;
(2) [14.3] 33
per cent of the tax on each one million British thermal units shall be
deposited into the energy security special fund established under section
201-12.8;
(3) [9.5] 23
per cent of the tax on each one million British thermal units shall be
deposited into the energy systems development special fund established under
section 304A-2169.1; and
(4) [14.3] 33 per
cent of the tax on each one million British thermal units shall be deposited
into the agricultural development and food security special fund established
under section 141-10.
The tax imposed by this subsection shall be paid by the distributor of the fossil fuel."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2017.
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INTRODUCED BY: |
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Report Title:
Taxation; Environmental Response, Energy, and Food Security Tax; Fuel Tax; Barrel Tax
Description:
Reallocates barrel tax revenues by increasing the distribution amounts to the environmental response revolving fund, energy security special fund, energy systems development special fund, and agricultural development and food security fund, in lieu of a distribution to the general fund.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
