HomeMy WebLinkAboutCOM 0595.003 1996-1998 o•1~R! Miti;.
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DONALD IKEDA i• ALAN S. KONISHI
County Clerk ~ fkpury County Clerk
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a ~ONSTANCE R. KIRIU
OFFICE OF `rHE COUI~`rY CLERK Legislative Auditor
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County of Hatwii
Hatuaii County Building -
25 Aupuni $trnt
Hilo. Hauwii 96720
January 14, 1998
TO: Honorable James Y. Arakaki, Chair
FROM: Liana Cox, Legislative Assistant i~_ il'i'i'a
RE: Communication No. 595, Resolution No. 192-97, Draft 3
In regard to concerns raised by Council Members at the Hawaii County Fuel Tax hearing held on
January 8, ] 998, 1 am transmitting the following clarifications.
Pursuant to §243-5, Hawaii Revised Statutes, each county is authorized to determine the amount of fuel tax
to be collected by each county. Currently, the county fuel taxes are 8.8 cents per gallon for diesel, gasoline
and other fuels on-highway, and 6.8 cents per gallon for LPG on-highway. These taxes are added to the
price per gallon at the pump.
In addition, §243-4, HRS, states every distributor of liquid fuel shall, in conjunction with other taxes, pay
the county fuel taxes collected to the State Department of Taxation monthly. The State Director of
Finance then disburses the county fuel taxes to the respective County Director of Finance who deposits the
funds into the Highway Fund. Once the taxes are deposited into the highway fund they are expended as
required in §243-6, HRS, and the Fuel Tax Expenditure Plan.
Furthermore, the Fuel Tax Expenditure Plan, as created by Resolution No. 397-88, distributed funds to
each district based on the percentage of vehicle weight taxes collected and the percentages of road miles in
each district. Over time, this formula has not been able to effectively address all districts and various road
improvements. Therefore, the Department of Public Works proposes to establish awork-based distribution
plan in a future resolution. In essence, the proposed Fuel Tax Program will not take into account where the
vehicle is registered.
As this transmission is brief, should you have any further questions or concerns please feel free to call.
APPROVED:
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Constance R. Kiriu ,5 / s, (~3
Legislative Auditor UOO~
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CC: All Council Members presented Ce?.~~r`
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