HomeMy WebLinkAboutCOM 0615.001 2012-2014 JNtV Os � .
BRENDA J. FORD � ^ , :11:
�'� ', Phone: (808) 323-4277
Council Member •
• Fax: (808) 329- 4786
District 6 - Portion of North •f,; Me:;;,
Kona, South Kona, Ka`u, & ''�OF... . E-Mail: bford @co.hawaii.hi.us
Greater Volcano Area
HAWAII COUNTY COUNCIL
County of Hawaii
West Hawaii Civic Center - ;'n
74-5044 Ane Keohokalole Hwy. ='
Kailua-Kona, Hawaii 96740
DATE: January 16, 2014 coo
N --
TO: J Yoshimoto, Chairperson,
and Members of the Hawai`i County Council
FROM: Brenda J. Ford, Council Member . _.
SUBJECT: Communication No. 615, Relating to 1% General Excise Tax Increase
Attached please find the following legislation that is being addressed at the State legislature.
They are:
• House Bill No. 1606, relating to taxation along with its tracking sheet.
• Senate Bill No. 2115, relating to taxation along with its tracking sheet.
Please distribute to all council members for the Committee on Finance meeting that is scheduled
for January 21, 2014.
Mahalo.
BF/dkr/la
Att.
Copy of HB 1606 w/Tracking Sheet
Copy of SB 2115 w/Tracking Sheet
Comm.No. 4 /5. I
Itot
s&
Dale..10 Z 1 2011
Serving the Interests of the People of Our Island
Hawaii County Is An Equal Opportunity Provider And Employer
HOUSE OF �H . B .
1606
REPRESENTATIVES
TWENTY-SEVENTH
LEGISLATURE, 2014 NO .
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1 . Section 46-16 . 8 , Hawaii Revised Statutes, is amended
to read as follows :
" [4] §46-16. 8 [I] County surcharge on state tax. (a) 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) Ne] no ordinance shall be adopted until the county has
conducted a public hearing on the proposed ordinance [;
(2) The ordinancc shall bc adoptcd prior to Dcccmbcr 31, 2005;
and
(3) No county surchargc on statc tax that may bc authorizcd
undcr this scction shall be lcvicd prior to January 1,
2007] .
Notice of the public hearing required under [paragraph (1) ] this
subsection 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.
(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 [, beginning no earlier than January 1, 2007, ] the
director of taxation shall levy, assess, collect, and otherwise
administer the county surcharge on state tax [—] ; provided that
for any ordinance that is adopted after July 1, 2014 , pursuant
to this section, the director of taxation shall not levy,
assess, collect, or otherwise administer the county surcharge on
state tax earlier than January 1 of the year succeeding the
adoption of the authorizing ordinance.
(c) Each county with a population greater than five hundred
thousand that adopts a county surcharge on state tax ordinance
pursuant to subsection (a) shall use the surcharges received
from the State for:
(1) Operating or capital costs of a locally preferred
alternative for a mass transit project; 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 . ] A county with a population of five hundred thousand
or less may expend the surcharges received from the State for
any purpose deemed appropriate by the respective county.
[ (d) Each county with a population equal to or less than five
hundred thousand that adopts a county surcharge on state tax
rcccivcd from the State for:
(1) Operating or capital costs of public transportation within
each county for public transportation systems,
including public roadways or highways, public buses,
- , - - , o-o - _- _ - _
bicycle paths; and
(2) - _- - - - -o o e - - -
Act of 1990 with respect to paragraph (1) .
(c) ] (d) As used in this section, "capital costs" means
nonrecurring costs required to construct a transit facility or
system, including debt service, costs of land acquisition and
development, acquiring of rights-of-way, planning, design, and
construction, and including equipping and furnishing the
facility or system. "
SECTION 2 . Section 237-8 . 6, Hawaii Revised Statutes, is amended
by amending subsection (a) to read as follows :
" (a) The county surcharge on state tax, upon the adoption of
county ordinances and in accordance with the requirements of
section 46-16 . 8 , 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 surcharge on
state tax at a rate greater than [onc half] one per cent of all
gross proceeds and gross income taxable under this chapter. All
provisions of this chapter shall apply to the 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 county surcharge on state tax, upon the adoption of a
county ordinance and in accordance with the requirements of
section 46-16 . 8 , 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 [onc half] one per cent of the
value of property taxable under this chapter. All provisions of
this chapter shall apply to the 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 tangible personal property and, in the case of a
person importing or purchasing tangible 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
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 [ ] two
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, and disposition of the county surcharge
on state tax incurred by the State. Amounts retained shall be
general fund realizations of the State . "
SECTION 5 . Act 247, Session Laws of Hawaii 2005, is amended by
amending section 9 to read as follows :
"SECTION 9 . This Act shall take effect upon its approval [;
providcd that :
(1) If none of the counties of the State adopt an ordinance to
levy a county surcharge on state tax by Dcccmbcr 31,
e : - - • - - - - - _-_ -0 _ -_ - - - . z - • - . . • ,
Hawaii Revised Statutes, shall be rccnactcd in the
form in which it read on the day prior to the
effective date of this Act;
(2) _ - . -o . - _ - ___ _ - -__ -
surcharge on state tax by Dcccmbcr 31, 2005, it shall
be prohibited from adopting such an ordinance pursuant
to this Act, unless otherwise authorized by the
-: ' - - - - _- - separate legislative act;
(3) If an ordinance to levy a county surcharge on state tax is
adopted by Dcccmbcr 31, 2005 :
-(A4- The ordinance shall be rep sled on Dcccmbcr 31, 2022 ;
(B) This Act shall be repealed on Dcccmbcr 31, 2022 ; and
(C) Section 437D 8 . 4, Hawaii Revised Statutes, shall be
rccnactcd in the form in which it r ad on the day
prior to the effective date of this Act] . "
SECTION 6 . Statutory material to be repealed is bracketed and
stricken. New statutory material is underscored.
SECTION 7 . This Act shall take effect on July 1, 2014 .
INTRODUCED BY:
Report Title:
County Surcharge on State Tax
Description:
Repeals deadline for counties electing to establish a county
surcharge on state tax to pass an ordinance to enact the
surcharge. Increases maximum rate of surcharge from 0 . 5% to 1%.
Allows counties under 500, 000 population to use proceeds without
restriction. Reduces the amount deducted from the county
surcharge on state tax to reimburse the State for costs of
assessment, collection, and disposition from 10% to 2%. Makes
permanent the counties ' authority to establish a surcharge on
state tax.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
Floor Session Convene Times for Thursday,
27th Legislature, 2014 January 16, 2014:
View Legislative Calendar Senate: 11:30am I House of Representatives:
12:00pm
HB1606% ,�.
Submit Testimony
Measure Title: RELATING TO TAXATION.
Report Title: County Surcharge on State Tax
Repeals deadline for counties electing to establish a county surcharge
on state tax to pass an ordinance to enact the surcharge. Increases
maximum rate of surcharge from 0.5% to 1%. Allows counties under
500,000 population to use proceeds without restriction. Reduces the
Description: amount deducted from the county surcharge on state tax to
reimburse the State for costs of assessment, collection, and
disposition from 10% to 2%. Makes permanent the counties' authority
to establish a surcharge on state tax.
Companion:
Package: HI Council of Mayors
Current Referral:
Introducer(s): SOUKI (Introduced by request of another party)
Sort by Date Status Text
1/10/2014 H Prefiled
1/15/2014 H Introduced and Passed First Reading
S= Senate I H = House I D= Data Systems I $ =Appropriation measure I ConAm = Constitutional Amendment
Some of the above items require Adobe Acrobat Reader. Please visit Adobe's download page for detailed instructions.
HB1606
THE SENATE
TWENTY-SEVENTH LEGISLATURE, 2014
S . B . N O . ,.. ' '5
STATE OF HAWAII JAN 1 5 2014
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. Section 46-16. 8, Hawaii Revised Statutes, is
2 amended to read as follows:
3 " [-E]§46-16 .8 [1] County surcharge on state tax. (a) Each
4 county may establish a surcharge on state tax at the rates
5 enumerated in sections 237-8 . 6 and 238-2 . 6. A county electing
6 to establish this surcharge shall do so by ordinance; provided
7 that [÷
8 (1) N-e] no ordinance shall be adopted until the county has
9 conducted a public hearing on the proposed ordinance [*
10 (2) The ordinance shall bc adopted prior to December 31,
11 2005; and
12 (3) No county curchargc on state tax that may be
13 authorized undcr this section shall bc levied prior to
14 January 1, 2007] .
15 Notice of the public hearing required under [paragraph (1) ] this
16 subsection shall be published in a newspaper of general
17 circulation within the county at least twice within a period of
18 thirty days immediately preceding the date of the hearing.
SB LRB 14-0317 .doc
II,I IIIIIIIII1IIIIII IIII1I I I IIIIIII II I[<I II
•
Page 2
S . B . No . z /ic
1 (b) A county electing to exercise the authority granted
2 under this section shall notify the director of taxation within
3 ten days after the county has adopted a surcharge on state tax
4 ordinance, and [ , bcginning no carlicr than January 1, 2007, ] the
5 director of taxation shall levy, assess, collect, and otherwise
6 administer the county surcharge on state tax [—] ; provided that
7 for any ordinance that is adopted after July 1, 2014, pursuant
8 to this section, the director of taxation shall not levy,
9 assess, collect, or otherwise administer the county surcharge on
10 state tax earlier than January 1 of the year succeeding the
11 adoption of the authorizing ordinance.
12 (c) Each county with a population greater than five
13 hundred thousand that adopts a county surcharge on state tax
14 ordinance pursuant to subsection (a) shall use the surcharges
15 received from the State for:
16 (1) Operating or capital costs of a locally preferred
17 alternative for a mass transit project; and
18 (2) Expenses in complying with the Americans with
19 Disabilities Act of 1990 with respect to paragraph
20 (1) .
21 [The county surcharge on state tax shall not be used to build or
22 repair public roads or highways, bicycle paths, or support
SB LRB 14-0317 .doc
113111 I�II III I III 1111111//1
Pages V . V . NO . 2 //S
1 public transportation systems alr ady in existence prior to July
2 12, 2005. ] A county with a population of five hundred thousand
3 or less may expend the surcharges received from the State for
4 any purpose deemed appropriate by the respective county.
5 [ (d) Each county with a population cqual to or less than
6 five hundred thousand that adopts a county surcharge on statc
7 tax ordinance pursuant to subsection (a) shall use the
8 surcharges rcccivcd from the State for:
9 (1) Operating or capital costs of public transportation
10 within each county for public transportation systems,
11 including public roadways or highways, public buses,
12 trains, fdrrics, pedestrian paths or sidewalks, or
13 bicycle paths; and
14 (2) Expenses in complying with the Amcricans with
15 Disabilities Act of 1990 with respect to paragraph
16 (1) .
17 (c) ] (d) As used in this section, "capital costs" means
18 nonrecurring costs required to construct a transit facility or
19 system, including debt service, costs of land acquisition and
20 development, acquiring of rights-of-way, planning, design, and
21 construction, and including equipping and furnishing the
22 facility or system. "
SB LRB 14-0317 .doc
1i Ill IIlII III IJU III 1111IIII1IIIIIIIIIII111111111
Page4 V . V . NO . i/S'
1 SECTION 2 . Section 237-8 . 6, Hawaii Revised Statutes, is
2 amended by amending subsection (a) to read as follows:
3 " (a) The county surcharge on state tax, upon the adoption
4 of county ordinances and in accordance with the requirements of
5 section 46-16. 8, shall be levied, assessed, and collected as
6 provided in this section on all gross proceeds and gross income
7 taxable under this chapter. No county shall set the surcharge
8 on state tax at a rate greater than [onc half] one per cent of
9 all gross proceeds and gross income taxable under this chapter.
10 All provisions of this chapter shall apply to the county
11 surcharge on state tax. With respect to the surcharge, the
12 director of taxation shall have all the rights and powers
13 provided under this chapter. In addition, the director of
14 taxation shall have the exclusive rights and power to determine
15 the county or counties in which a person is engaged in business
16 and, in the case of a person engaged in business in more than
17 one county, the director shall determine, through apportionment
18 or other means, that portion of the surcharge on state tax
19 attributable to business conducted in each county. "
20 SECTION 3 . Section 238-2. 6, Hawaii Revised Statutes, is
21 amended by amending subsection (a) to read as follows :
SB LRB 14-0317 .doc
111111111111.1111111110111111 1111 11
Pages S • B • NO . ziis
1 " (a) The county surcharge on state tax, upon the adoption
2 of a county ordinance and in accordance with the requirements of
3 section 46-16. 8, shall be levied, assessed, and collected as
4 provided in this section on the value of property and services
5 taxable under this chapter. No county shall set the surcharge
6 on state tax at a rate greater than [onc half] one per cent of
7 the value of property taxable under this chapter. All
8 provisions of this chapter shall apply to the county surcharge
9 on state tax. With respect to the surcharge, the director shall
10 have all the rights and powers provided under this chapter. In
11 addition, the director of taxation shall have the exclusive
12 rights and power to determine the county or counties in which a
13 person imports or purchases tangible personal property and, in
14 the case of a person importing or purchasing tangible property
15 in more than one county, the director shall determine, through
16 apportionment or other means, that portion of the surcharge on
17 state tax attributable to the importation or purchase in each
18 county. "
19 SECTION 4 . Section 248-2 . 6, Hawaii Revised Statutes, is
20 amended by amending subsection (a) to read as follows :
21 " (a) If adopted by county ordinance, all county surcharges
22 on state tax collected by the director of taxation shall be paid
SB LRB 14-0317 .doc
IIII II
1111:I MIINID NIIIIIINIIIII II-III
Page 6
S . B . NO . V'S
1 into the state treasury quarterly, within ten working days after
2 collection, and shall be placed by the director of finance in
3 special accounts . Out of the revenues generated by county
4 surcharges on state tax paid into each respective state treasury
5 special account, the director of finance shall deduct [ -e ] two
6 per cent of the gross proceeds of a respective county' s
7 surcharge on state tax to reimburse the State for the costs of
8 assessment, collection, and disposition of the county surcharge
9 on state tax incurred by the State. Amounts retained shall be
10 general fund realizations of the State. "
11 SECTION 5 . Act 247, Session Laws of Hawaii 2005, is
12 amended by amending section 9 to read as follows:
13 "SECTION 9 . This Act shall take effect upon its approval [T
14 provided that:
15 (1) If none of the countics of the State adopt an
16 ordinance to levy a county surcharge on state tax by
17 December 31, 2005, this Act shall be repealed and
18 section 437D 8 . 4, Hawaii Revised Statutes, shall be
19 reenacted in the form in which it read on the day
20 prior to the effective date of this Act;
21 (2) If any county does not adopt an ordinance to levy a
22 county surcharge on state tax by December 31, 2005, it
SB LRB 14-0317 .doc
III1Yi0 II1I 1110111 !ll III1:1III._11111111111
Page 7
S . B . NO . 2./ ns
1 shall be prohibited from adopting such an ordinance
2 pursuant to this Act, unless otherwise authorized by
3 the legislature through a separate legislative act;
4 (3) If an ordinance to levy a county surcharge on state
5 tax is adopted by Dcccmbcr 31, 2005:
6 {A} The ordinance shall be repealed on Dcccmbcr 31,
7 2022;
8 (B) This Act shall be repealed on Dcccmbcr 31, 2022;
9 and
10 (C) Section 437D 8 . 1, Hawaii Revised Statutes, shall
11 be reenacted in the form in which it read on the
12 day prior to the effective date of this Act] . "
13 SECTION 6. Statutory material to be repealed is bracketed
14 and stricken. New statutory material is underscored.
15 SECTION 7 . This Act shall take effect on July 1, 2014 .
16
INTRODUCED BY: C5r-W1`-‘ - .1‘4"44(-496. /1K:‘
By Request
SB LRB 14-0317 .doc •
�� IIII I1IIIII111 IIIIIIIi1IIlIIIIIII IIIJ II�9lI I� •
S . B . NO . airs
Report Title:
County Surcharge on State Tax
Description:
Repeals deadline for counties electing to establish a county
surcharge on state tax to pass an ordinance to enact the
surcharge. Increases maximum rate of surcharge from 0 . 5% to 1% .
Allows counties under 500, 000 population to use proceeds without
restriction. Reduces the amount deducted from the county
surcharge on state tax to reimburse the State for costs of
assessment, collection, and disposition from 10% to 2% . Makes
permanent the counties ' authority to establish a surcharge on
state tax.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
SB LRB 14-0317 .doc
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