Bill Text: HI SB1341 | 2019 | Regular Session | Introduced

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Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-01-28 - Referred to PSM/HOU/HMS, WAM. [SB1341 Detail]

Download: Hawaii-2019-SB1341-Introduced.html

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THE SENATE	S.B. NO.	1341
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to taxation.

 

 

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

 

     SECTION 1.  Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§46-    Additional county surcharge on state tax.  (a)  In addition to the surcharge authorized under section 46-16.8, 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; and

     (2)  The ordinance shall be adopted prior to March 31, 2020.

     (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 the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax.

     (c)  Notice of the public hearing required under subsection (a) before adoption of an ordinance establishing 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.

     (d)  Each county that adopts a county surcharge on state tax under this section shall use the surcharge revenues received from the State for purposes relating to housing and homelessness."

     SECTION 2.  Section 237-8.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  [The] A county surcharge on state tax, upon the adoption of county ordinances and in accordance with the requirements of section 46-16.8[,] or 46-  , 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] a surcharge on state tax at a rate greater than [one-half]:

     (1)  One-half per cent of all gross proceeds and gross income taxable under this chapter[.], for surcharges authorized under section 46-16.8; or

     (2)  One-half per cent of all gross proceeds and gross income taxable under this chapter, for surcharges authorized under section 46-  .

All provisions of this chapter shall apply to [the] a 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] A county surcharge on state tax, upon the adoption of a county ordinance and in accordance with the requirements of section 46-16.8[,] or 46-  , 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]:

     (1)  One-half per cent of the value of property taxable under this chapter[.], for surcharges authorized under section 46-16.8; or

     (2)  One-half per cent of the value of property taxable under this chapter, for surcharges authorized under section 46-  .

All provisions of this chapter shall apply to [the] a 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 property and, in the case of a person importing or purchasing 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 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, within ten working days after collection, and shall be placed by the director of finance in special accounts; provided that county surcharge revenues levied, assessed, and collected in a county with a population greater than five hundred thousand in accordance with the requirements of section 46-16.8 shall be deposited into the mass transit special fund established under section 248-2.7.  Out of the revenues generated by county surcharges on state tax paid into each respective state treasury special account or the mass transit special fund, the director of finance shall deduct one 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, disposition, and oversight 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)  For a county with a population equal to or less than five hundred thousand that adopts a county surcharge on state tax, 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 basis to the director of finance of each county that has adopted a county surcharge on state tax under section 46-16.8[.] or 46-  .

     For a county with a population greater than five hundred thousand that adopts or extends a county surcharge on state tax ordinance[,] in accordance with the requirements of section 46-16.8, after the deduction and withholding of the costs under subsections (a) and (b), the director of finance shall administer the remaining surcharge revenues in accordance with section 248-2.7.

     For a county with a population greater than five hundred thousand that adopts a county surcharge on state tax pursuant to section 46-   , 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 basis to the director of finance of each county that has adopted a county surcharge on state tax under section 46-   .

     The payments shall be made after the county surcharges on state tax have been paid into the state treasury special accounts or the mass transit special fund 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 or 46-   , as applicable, by each of the counties."

     SECTION 5.  Section 437D-8.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Notwithstanding any law to the contrary, a lessor may visibly pass on to a lessee:

     (1)  The general excise tax attributable to the transaction;

     (2)  The vehicle license recovery fees, prorated at 1/292nd of the annual vehicle license recovery fees actually paid on the particular vehicle being rented for each full or partial twenty-four-hour rental day that the vehicle is rented; provided the total of all vehicle license recovery fees charged to all lessees shall not exceed the annual vehicle license recovery fees actually paid for the particular vehicle rented;

     (3)  The surcharge taxes imposed in chapter 251 attributable to the transaction;

     (4)  The county surcharge on state tax under section 46‑16.8[;] or 46-   ; provided that the lessor itemizes the tax for the lessee; and

     (5)  The rents or fees paid to the department of transportation under concession contracts negotiated pursuant to chapter 102, service permits granted pursuant to title 19, Hawaii Administrative Rules, or rental motor vehicle customer facility charges established pursuant to section 261-7; provided that:

          (A)  The rents or fees are limited to amounts that can be attributed to the proceeds of the particular transaction;

          (B)  The rents or fees shall not exceed the lessor's net payments to the department of transportation made under concession contract or service permit;

          (C)  The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts of the rents or fees paid to the department of transportation pursuant to the applicable concession contract or service permit:

              (i)  For all airport locations; and

             (ii)  For each airport location;

          (D)  The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts charged to lessees:

              (i)  For all airport locations;

              (ii)  For each airport location; and

            (iii)  For each lessee;

          (E)  The lessor includes in these reports the methodology used to determine the amount of fees charged to each lessee; and

          (F)  The lessor submits the above information to the department of transportation and the department of commerce and consumer affairs within three months of the end of the preceding annual accounting period or contract year as determined by the applicable concession agreement or service permit.

          The respective departments, in their sole discretion, may extend the time to submit the statement required in this subsection.  If the director determines that an examination of the lessor's information is inappropriate under this subsection and the lessor fails to correct the matter within ninety days, the director may conduct an examination and charge a lessor an examination fee based upon the cost per hour per examiner for evaluating, investigating, and verifying compliance with this subsection, as well as additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination, which shall relate solely to the requirements of this subsection, and which shall be billed by the departments as soon as feasible after the close of the examination.  The cost per hour shall be $40 or as may be established by rules adopted by the director.  The lessor shall pay the amounts billed within thirty days following the billing.  All moneys collected by the director shall be credited to the compliance resolution fund."

     SECTION 6.  Act 247, Session Laws of Hawaii 2005, as amended by Act 240, Session Laws of Hawaii 2015, as amended by Act 1, First Special Session Laws of 2017, 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 December 31, 2022; provided that 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 an act of the legislature; and

          (B)  [This] Section 1 of this Act shall be repealed on December 31, 2030[; 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[.]; 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 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

County Surcharge on State Tax; General Excise Tax; Housing; Homelessness

 

Description:

Authorizes a county to establish an additional surcharge on state tax prior to March 31, 2020, for purposes relating to housing and homelessness.

 

 

 

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