HomeMy WebLinkAboutRES 156 Draft 01 2010-2012COUNTY OF HAWAII
STATE OF HAWAII
RESOLUTION NO. 156 11
A RESOLUTION TO REQUEST THAT THE LEGISLATURE OF THE STATE OF
HAWAII AMEND CHAPTER 244D, SECTION 244D -4, HAWAII REVISED
STATUTES, RELATING TO INCREASING THE GALLONAGE TAX ON LIQUOR.
WHEREAS, according to "U.S. Department of Transportation, 2009 ", the County of
Hawai`i has the highest percentage of fatalities caused by persons driving while under the
influence of alcohol in the State of Hawai`i and in the nation; and
WHEREAS, residents and visitors who drive while under the influence of an intoxicant,
or who continue to drive while under the influence of an intoxicant after being arrested, have
created costly, emotional and physical pain, and inflicted tragic and intolerable situations for the
people and families of the victims they injure and kill; and
WHEREAS, costs for first responders, fire fighters, EMS personnel, and police officers,
costs for second responder, the Traffic Division, and costs for the Office of the Prosecuting
Attorney, are paid for by the respective counties; and
WHEREAS, untold millions of dollars are spent by the counties to cover the cost of
crashes and crash fatalities involving persons who drive while under the influence of an
intoxicant; and
WHEREAS, whether occurring on a state or federal highway, expenses and costs
associated with these crashes and crash fatalities involving persons who drive while under the
influence of an intoxicant accrue to the counties and are not currently reimbursed; and
WHEREAS, Section 291E, Hawai`i Revised Statutes, established the Blood Alcohol
Content (BAC) for any criminal prosecution and, provides in pertinent part, as follows:
(1) HRS section 291E -3(a): ".08 or more grams of alcohol per one hundred milliliters
or cubic centimeters of the person's blood or .08 or more grams of alcohol per two
hundred ten liters of the person's breath...within three hours after the time of the
alleged violation as shown by chemical analysis or other approved analytical
techniques of the person's blood, breath, or urine shall be competent evidence that
the person was under the influence of an intoxicant at the time of the alleged
violation."
(2) HRS section 291E-3(b)(1): "If there were .05 or less grams of alcohol per one
hundred milliliters or cubic centimeters of defendant's blood or .05 or less grams
(3)
of alcohol per two hundred ten liters of defendant's breath, it shall be presumed
that the defendant was not under the influence of alcohol at the time of the alleged
violation."
HRS section 291E- 3(b)(2): "If there were in excess of .05 grams of alcohol per
one hundred milliliters or cubic centimeters of defendant's blood or .05 grams of
alcohol per two hundred ten liters of defendant's breath, but less than .08 grams of
alcohol per one hundred milliliters or cubic centimeters of defendant's blood or
.08 grams of alcohol per two hundred ten liters of defendant's breath, that fact
may be considered with other competent evidence in determining whether the
defendant was under the influence of alcohol at the time of the alleged violation,
but shall not of itself give rise to any presumption. "; and
WHEREAS, many people drive with a BAC between 0.05 and 0.08, and some of those
people may become involved in crashes; and
WHEREAS, from 1998 to 2011, the Consumer Price Index has increased by over thirty -
five per cent; and
WHEREAS, the gallonage tax on liquor has not been raised since 1998, and the
following chart indicates the potential percentage increase and revenue that the counties may
receive; and
2010
Hawai`i
Maui
Kaua`i
O'ahu
Total Tax
Revenues
$5,849,036
$6,447,013
$2,774,765
$29,888,254
increase 10%
$584,904
$644,701
$277,477
$2,988,825
increase 20%
$1,169,807
$1,289,403
$554,953
$5,977,651
increase 30%
$1,754,711
$1,934,104
$832,430
$8,966,476
WHEREAS, the following chart shows the current tax per gallon and the potential tax
amount based on an increase of thirty percent per gallon; and
2
Distilled Spirits
Sparkling Wine
Still Wine
Cooler Beverages
Beer other than
Draft Beer
Draft Beer
Current Tax /Gallon
$ 5.98
$ 2.12
$ 1.38
$ 0.85
$ 0.93
$ 0.54
Increase Tax — 30%
7.78
2.76
1.80
1.11
1.21
0.70
2
WHEREAS, potential revenues received from a thirty per cent increase of the gallonage
tax on liquor would supplement services provided by police, fire, emergency medical services,
road cleanup, prosecution associated with crashes involving persons driving while under the
influence of an intoxicant, and may also be used for training, equipment, and public service
announcements; and
WHEREAS, the Council of the County of Hawai`i supports a thirty percent increase of
the gallonage tax on liquor as an additional source of revenue that would benefit all counties of
the State of Hawai`i; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the
Hawai`i State Legislature is urged to amend Chapter 244D, Section 244D -4 relating to increasing
the gallonage tax on liquor as set forth in the attached Exhibit A, and the Justification Sheet
attached as Exhibit B.
BE IT FURTHER RESOLVED that revenues received from this tax increase of
approximately thirty percent per gallon of liquor shall be placed in a special fund, and the
increased tax revenue collected pursuant to this Act shall be reimbursed to the counties, however,
fines on the increased tax revenue shall be retained by the State of Hawai`i for collection
expense.
BE IT FURTHER RESOLVED that the counties shall use the increased revenue from
the thirty per cent increase in gallonage tax on liquor to pay for Police, Fire, Emergency Medical
Services, road clean -up, and prosecution associated with crashes involving driving while under
the influence of an intoxicant, and increased tax revenue may also be used to cover expenses
relating to training, equipment, and public service announcements associated with reducing
occurrences of driving while under the influence of an intoxicant.
BE IT FURTHER RESOLVED that tax revenues from the thirty per cent increase in
gallonage tax on liquor shall be kept in a special fund by each county, and be accounted for as a
separate line item in their respective budgets.
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BE IT FINALLY RESOLVED that copies of this Resolution be transmitted to the
President of the State Senate, the Speaker of the State House of Representatives, the House
Finance Committee Chairperson, the Honorable Neil Abercrombie, Governor of the State of
Hawai`i and the respective Mayors of the counties of Hawai`i, Kaua`i, Maui, and the City and
County of Honolulu.
Dated at Hilo , Hawai`i, this 5th day of October , 2011.
INTRODUCED BY:
774,7a40—
COUNCIL MEMBER, COUNTY OF HAWAII
County of Hawai`i
Hilo, Hawai`i
I hereby certify that the foregoing RESOLUTION was by
the vole indicated to the right hereof adopted by the COUNCIL of the
County of I lawai`i on October 5 , 2011
A I' FFST:
'OUNTY CLERK CHAIRPERSON & PRESID G SFFICER
ROLL CALL VOTE
Reference: C- 365 /Waived GRC
RESOLUTION NO. 156 11
AYES
NOES
ABS
EX
BLAS
X
FORD
X
HOFFMANN
X
IKEDA
X
ONISHI
X
PILAGO
X
SMART
X
YAGONG
X
YOSHIMOTO
X
7
0
1
1
Reference: C- 365 /Waived GRC
RESOLUTION NO. 156 11
THE
TWENTY- LEGISLATURE, 2011
STATE OF HAWAII
EXHIBIT A
A BILL FOR AN ACT
.B. NO.
RELATING TO GALLONAGE TAX ON LIQUOR
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 244D -4, Hawaii Revised Statutes, is amended to read as follows:
" §244D -4 Tax; limitations. (a) Every person who sells or uses any liquor in the State not
taxable under this chapter, in respect of the transaction by which the person or the person's
vendor acquired the liquor, shall pay a gallonage tax which is hereby imposed at the following
rates for the various liquor categories defined in section 244D -1:
For the period July 1, 1997, to June 30, 1998, the tax rate shall be:
(1) $5.92 per wine gallon on distilled spirits;
(2) $2.09 per wine gallon on sparkling wine;
(3) $1.36 per wine gallon on still wine;
(4) $0.84 per wine gallon on cooler beverages;
(5) $0.92 per wine gallon on beer other than draft beer;
(6) $0.53 per wine gallon on draft beer;
[On] For the period July 1, 1998, [and thereafter,] to June 30, 2013, the tax rate shall be:
(1) $5.98 per wine gallon on distilled spirits;
(2) $2.12 per wine gallon on sparkling wine;
(3) $1.38 per wine gallon on still wine;
(4) $0.85 per wine gallon on cooler beverages;
(5) $0.93 per wine gallon on beer other than draft beer;
(6) $0.54 per wine gallon on draft beer;
On July 1, 2013, and thereafter, the tax rate shall be:
(1)
(2)
(3)
(4)
(5)
(6)
$6.03 per wine gallon on distilled spirits;
$2.17 per wine gallon on sparkling wine;
$1.43 per wine gallon on still wine;
$0.90 per wine gallon on cooler beverages;
$0.98 per wine gallon on beer other than draft beer;
$0.59 per wine gallon on draft beer;
and at a proportionate rate for any other quantity so sold or used.
(b) Beginning July 1, 2013, the increase in the gallonage tax shall begin and the
additional thirty percent per gallon collected shall be reimbursed to each county by the amount of
additional gallonage tax collected from that county; however, fines on the increased tax revenue
shall be retained by the State of Hawai`i to compensate it for the expense of collection. Tax
revenues from this Act shall be kept by the respective counties in a special fund, and be
accounted for as a separate line item in their respective budgets.
fcl The tax collected for the period July 1, 2013 and thereafter as set forth under
subparagraph (a) above shall only be used to pay for Police, Fire, Emergency Medical Services,
road clean -up, prosecution, and may also be used for training, the purchase of any equipment
deemed necessary by the respective county departments, education and public service
announcements utilized to reduce driving while under the influence of an intoxicant.
[ (b) ] (d) The tax levied pursuant to subsection (a) shall be paid only once upon the
same liquor; provided further that the tax shall not apply to:
(1) Liquor held for sale by a permittee but not yet sold;
(2) Liquor sold by one permittee to another permittee;
(3) Liquor which under the Constitution and laws of the United States cannot be
legally subjected to the tax imposed by this chapter so long as and to the extent to
which the State is without power to impose the tax;
(4) Liquor sold for sacramental purposes or the use of liquor for sacramental
purposes, or any liquor imported pursuant to section 281 -33; and
Alcohol sold pursuant to section 281 -37 to a person holding a purchase permit or
prescription therefor, or any sale or use of alcohol, so purchased, for other than
beverage purposes."
(5)
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EXHIBIT B
JUSTIFICATION SHEET
PROPOSER: Hawai`i State Association of Counties
TITLE: RELATING TO INCREASED GALLONAGE TAX ON LIQUOR.
PURPOSE: To increase gallonage tax on liquor by 30 %, collect and transfer this
additional revenue to the respective counties, and partially reimburse
counties for cost of handling crashes and crash fatalities involving driving
under the influence of an intoxicant.
MEANS: Amend HRS Chapter 244D -4 to increase the gallonage tax on liquor by
30 %.
JUSTIFICATION: The high rate of crashes and crash fatalities involving driving under the
influence of an intoxicant (alcohol), and the cost of resolving the crash and
fatalities falls on the counties which justifies an increase in gallonage tax
for liquor. Gallonage tax on liquor has not increased since 1998 while the
Consumer Price Index has increased more than 35% in the same period of
time. Resolving the crash involves police, fire, EMS, traffic division to
clear the wreckage, and prosecution of the case in each county. These
costs could be partially covered by an increase in gallonage tax for liquor.
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