Bill Text: HI SB576 | 2017 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2017-01-23 - Referred to PSM/TRE, WAM. [SB576 Detail]
Download: Hawaii-2017-SB576-Introduced.html
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THE SENATE |
S.B. NO. |
576 |
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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 legislature finds that transportation costs for the city and county of Honolulu and the State are annual recurring costs that will continue as long as the State's population and need for roads continue to grow. Maintaining public transportation through the bus system and fixing the public roads and highways are constant expenditures the State and counties fund each budget cycle. With the current construction of the rail transit system on Oahu, transportation costs are the largest government expense of the city and county of Honolulu. When completed, the rail transit system will be the most expensive public works project built in the State, which will improve mobility for Oahu residents and transportation infrastructure to support a growing economy. Millions of tourists are also expected to utilize the rail transit system on an annual basis, which will help to pay for yearly maintenance costs and help to relieve some of the traffic congestion on the State's roads and highways.
The legislature further finds that the discussion about building a rail transit system on Oahu included a route along the Honolulu urban core that connected west Oahu to the University of Hawaii at Manoa. When the University of Hawaii at Manoa is in session, traffic increases because the university is a major employment center and thousands of students attend classes each day.
The intent of this Act is to create a mechanism to pay for the rail transit system to be completed from west Oahu to the University of Hawaii at Manoa, without having to raise the gas tax, vehicle weight tax, or vehicle registration tax in the future.
The purpose of this Act is to:
(1) Authorize the city and county of Honolulu to extend the county surcharge on state tax beyond December 31, 2027;
(2) After the completion of the mass transit project, permit counties to use the surcharge on state tax for operation and maintenance of the mass transit project, existing public transportation, or public road and highway repairs;
(3) Deduct one-third of the amount from the gross proceeds of a county's surcharge on state tax to reimburse the State for costs associated with handling the assessment, collection, and disposition of the county surcharge on state tax and fund various state transportation projects; and
(4) Repeal the sunset date of the county surcharge on state tax established pursuant to section 46-16.8, Hawaii Revised Statutes.
SECTION 2. Section 46-16.8, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (b) to read:
"(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 [from January 1, 2023,
until] beyond December 31, 2027, 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 July 1, [2016,]
, but no earlier than July 1, 2015.
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. Beginning on January 1, 2023, the director of taxation shall levy, assess, collect, and otherwise administer the extended surcharge on state tax."
2. By amending subsection (e) to read:
"(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 surcharges received from the State for:
(1) Capital costs of a locally preferred alternative
for a mass transit project; [and] provided that, after the full
completion of the mass transit project, the county surcharge on state tax may
be used to:
(A) Operate and maintain the mass transit project;
(B) Support public transportation systems already in existence prior to July 12, 2005; and
(C) Repair public roads or highways; 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.]
For the purposes of this subsection, "full completion" means a
rail transit system that connects from at least Kalaeloa airport to the
University of Hawaii at Manoa campus."
SECTION 3. 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 the 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; or
(B) January 1, 2018, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but prior to July 1, 2016; and
(2) After December 31, 2027[.], unless the
county extends the surcharge on state tax pursuant to section 46-16.8(b)."
SECTION 4. 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 the 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; or
(B) January 1, 2018, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but prior to July 1, 2016; and
(2) After December 31, 2027[.], unless the
county extends the surcharge on state tax pursuant to section 46-16.8(b)."
SECTION 5. 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
per cent] one-third of the gross proceeds of a respective county's
surcharge on state tax [to]:
(1) 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.]; and
(2) For transportation projects in the State, including building or repairing public roads or highways, and other transportation costs."
SECTION 6. Act 247, Session Laws of Hawaii 2005, as amended by Act 240, Session Laws of Hawaii 2015, 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], 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 Act 240, Session Laws of Hawaii 2015[;
(B) This Act shall be repealed on
December 31, 2027; 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.], or Act , Session
Laws of Hawaii 2017."
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect on January 1, 2018.
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INTRODUCED BY: |
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Report Title:
Public Transit; County Surcharge on State Tax
Description:
Authorizes a county with a population greater than 500,000 to extend the county surcharge on state tax beyond December 31, 2027. After full completion of the mass transit project, permits counties to use the surcharge on state tax for operation and maintenance of the mass transit project, existing public transportation, or public road and highway repairs. Deducts one-third of the amount from the gross proceeds of a county's surcharge on state tax to reimburse the State for costs associated with handling the assessment, collection, and disposition of the county surcharge on state tax and fund various State transportation projects. Repeals the sunset date of the county surcharge on state tax levied by the city and county of Honolulu. Takes effect January 1, 2018.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
