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Home My WebLink AboutCOM 0751.005 2014-2016 •JM�Y OF , , PHONE: (808)961-8396 DENNIS "FRESH"ONISHI . � �c FAX: (808)961-8912 Council Member Ate.•t;• �� District 3 R _ "' ' EMAIL:dolrishi u�mvaucounq.gov • J � HAWAII COUNTY COUNCIL County of Hawai`i Hawaii County Building 25 Aupuni Street,Hilo,Hawaii 96720 N CJ _ O: Q n MEMORANDUM N.) DATE: May 2, 2016 TO: Dru Mamo Kanuha, Council Chair %A _- Karen Eoff, Chair of Finance Committee And Members of the Hawaii County Council FROM: 'Dennis "Fresh" Onishi, Council Member SUBJECT: Bill 165 Establishes ''A percent General Excise and Use Tax Surcharge Attached for discussion on the May 3 Planning Committee,please find the following documents: 1. Act. 240 (pages 5 &6) 2. County Surcharge—Dept. of Taxation 3. Two—invoices 4. Email discussion re GET Att. Comm. No. 7 5 F s Ref. To: Pf fL Hawai'i County is an Equal Opportunity Provider and Employer. kf. Date MAY 0 3 2016 134 Page s H.D.HB . N H.D1 S.D. 2 C.D. 1 1 ordinance. Beginning on January 1, 2018, the director of 2 taxation shall levy, assess, collect, and otherwise administer 3 the county surcharge on state tax. 4 (d) Notice of the public hearing required under subsection 5 (b) or (c) before adoption of an ordinance establishing or 6 extending the surcharge on state tax shall be published in a 7 newspaper of general circulation within the county at least 8 twice within a period of thirty days immediately preceding the 9 date of the hearing. 10 [ (c) ] (e) Each county with a population greater than five 11 hundred thousand that adopts or extends a county surcharge on 12 state tax ordinance pursuant to subsection (a) or (b) shall use . 13 the surcharges received from the State for: 14 (1) [Operating or capital] Capital costs of a locally 15 preferred alternative for a mass transit project; and 16 (2) Expenses in complying with the Americans with 17 Disabilities Act of 1990 with respect to paragraph 18 (1) . 19 The county surcharge on state tax shall not be used to build or 20 repair public roads or highways, bicycle paths, or support HB134I CD1 HMS 2015-3509 f1l Page 6 134 H . B . NO. H.D. 1 S.D. 2 C.D. 1 1 public transportation systems already in existence prior to July 2 12 , 2005. 3 [ (d) ] (f) Each county with a population equal to or less 4 than five hundred thousand that adopts a county surcharge on S state tax ordinance pursuant to [cubacction (a) ] this section 6 shall use the surcharges received from the State for: 7 (1) Operating or capital costs of public transportation 8 within each county for public transportation systems, 9 including public roadways or highways, public buses, 10 trains, ferries, pedestrian paths or sidewalks, or 11 bicycle paths; and 12 (2) Expenses in complying with the Americans with 13 Disabilities Act of 1990 with respect to paragraph 14 (1) . 15 [ (c) ] (g) As used in this section, "capital costs" means 16 nonrecurring costs required to construct a transit facility or 17 system, including debt service, costs of land acquisition and 18 development, acquiring of rights-of-way, planning, design, and 19 construction, and including equipping and furnishing the 20 facility or system. For a county with a population greater than 21 five hundred thousand, capital costs also include non-recurring HB134 CD1 HMS 2015-3509 6 (REV.2015) General Excise/Use One-Time Event STEP-BY-STEP INSTRUCTIONS FOR FILLING IN YOUR FORM G-45 (PERIODIC RETURN) (The circled numbers in the figures correspond to the steps in the instructions.) A periodic general excise/use tax return(Form G-45),including an amended return,can be filed and payment made electronically through the State's Internet portal. For more information,go to tax.hawaii.gov/eservices/. Changes You Should Note • Effective immediately— Mail all general excise and use tax • Act 216, SLH 2015 — This act authorizes and appropriates payments and a completed Form VP-1 to: funds for the Hawaii small business innovation research program to provide grants to businesses with a federal small business Hawaii Department of Taxation innovation research phase II or III award. Section 237-24.7(10), P.O.Box 1730 Hawaii Revised Statutes (HRS), provides an exemption from Honolulu. HI 96806-1730 general excise tax the amounts received as grants by the High • Mail G-45 returns to: Technology Development Corporation under section 206M-15, HRS. that supplement federal business innovation research Hawaii Department of Taxation phase 1 awards. Act 216, amends section 206M-15, HRS, to P.O.Box 1425 include phase II and III awards.Effective July 1,2015. Honolulu, HI 96806-1425 • Act 240,SLH 2015—This act reauthorizes the counties'authority • Act 201, Session Laws of Hawaii (SLH) 2015 — This act to establish a county surcharge on state tax for a limited time excludes from gross income, the amounts collected by electric period, with the surcharge to be effective until 12/31/2027. utility companies acting as billing and collection agents for an on- Requires counties to adopt an ordinance to establish or extend a bill program, from state and county taxes, including the general surcharge prior to 7/1/2016. Effective July 1,2015 excise tax. "On-bill program" means any program approved • Schedule GE-This form which is used to report exemptions has by the public utilities commission that allows for the payment been revised. If you are claiming exemptions, please complete or repayment by an electric utility customer for the acquisition and attach Schedule GE (Form G-45/G-49) (Rev.2014) to your and installation of renewable energy, energy efficient, or energy Form G-45. Failing to use the most current form may result in the conservation systems as part of the electric utility customer's disallowance of your exemptions. electric bill. Effective July 2,2015. County Surcharge Effective January 1, 2007, the general excise and use tax was and to help you complete Part IV (Oahu taxable income subject amended to provide a 0.5% county surcharge on transactions to the county surcharge) and Part V (assignment of taxes by attributable to the City and County of Honolulu and subject to the district) on Form G-45. See pages 9-10 and 15-16 of the General state general excise tax rate of 4% for a total rate of 4.5%. The Instructions for Filing the General Excise/Use Tax Returns for more county surcharge does not apply to activities taxed at the 0.5%rate information on completing Parts IV and V of Form G-45. (e.g.,wholesaling)or the 0.15% rate for insurance commissions.If For more information on the county surcharge, see Department you do business on more than one island,you must complete Form of Taxation Announcement Nos. 2005-11, 2006-15, 2006-17 and G-75 and attach it to Form G-45. Form G-75 is used to report your Tax Information Release (TIR) No. 2007-01 or click on the link to taxable income for each type of business activity(e.g.,wholesaling, the County Surcharge webpage from the Department of Taxation's retailing) in each taxation district (i.e., Oahu, Maui, Kauai, Hawaii) homepage at tax.hawaii.gov. About this Form The GET is a privilege tax imposed on the gross income received by every person engaging in business, including a one-time event (e.g.,fundraiser,exhibition,conference)in the State of Hawaii. Use II 121-31115161 71819101X Form G-45, Periodic General Excise/Use Tax Return,to report your gross income, exemptions,and the tax attributable to the one-time 4. Do NOT print outside the boxes. event. Form G-45 is due on or before the 20th day of the calendar 5. Fill in ovals completely. Do not V or X the ovals. month following the one-time event. For example, if the event is 6. Do NOT enter cents. All numbers that are required to be on January 31st, then Form G-45 is due on February 20th. An rounded to the nearest dollar should NOT be printed over the individual not engaged in business (e.g., an employee performing zeros used to designate cents. personal services under the direction and control of an employer)is 7. Do NOT use dollar signs,slashes,dashes or parentheses in the not required to file a general excise/use tax return. Form G-45 is designed for electronic scanning that permits faster boxes. 8. We recommend that you print a new form from our website processing with fewer errors. To avoid delays: 1. Print amounts only on those lines that are applicable. (tax.hawaii.gov) each time you need it. The form's barcode 2. Use only a black or dark blue ink pen.Do not use red ink,pencil, is necessary to process the return. Excessive photocopying of a photocopy will degrade the barcode, and the barcode will felt tip pens, or erasable pens. become unreadable. 3. Because this form is read by a machine, please print your numbers inside the boxes like this: Note:Form G-49(Annual Return and Reconciliation)is not required to be filed. Rounding to Whole Dollars in Columns a, b, and c The Department of Taxation (Department) is requiring taxpayers in Columns a, b, and c. To do so, drop amounts under 50 cents to round off cents to the nearest whole dollar for all dollar entries and increase amounts from 50 to 99 cents to the next dollar. For Page 1 INVOICE MIT TO: AMERICAN American T-Shirt Co. T-SHIRT COMPANY 1217 NO. KING STREET frxa � + Li- )• 1217 North King at HONOLULU HI 96817 •_ llLli►/{71i1.1111.1 Honolulu,H196017 PH:(808)842-4466 rt`T '-T 's I1C111//91)1.� 1 FAX:(808)842-191 www.amer[ant -1911hirt m 4 [ mro®amen<em:nn.mm ,:;.1.:P61 E{e;� SHIP TO: VILLAGE L gp Attn: cell p808-4I43-92882 99#gWWN: DEKNgN�IIpSpAONISHITS AATHI :G ppEENNIS��AO�NISHRTS HILOEHI 96720 HILO SHIUSAR6720 12_ Th; „',d�'U tt- PADi�R �' as 1 04/17/2015 <.� a ,a }9.."'�T jam, *#z"�kQ$y`w -ID INS.7i.704 TTQ RESP V- tS ENT Ot tnetP,F. s.h`*ty r.y.. MIMEt fa' :Inti`rqu 1 75047034 PHOTO-BLU GL. 2.00 2.00 0.00 55.9000 EA 111.80 2 74540031 PCM116-66 NYLON BOND PT. 1.00 1.00 0.00 45.7300 ea 45.73 3 70039514 W'M 109590 TITAN 44RTE GL 1.00 1.00 0.00 86.4400 ea 86.44 Shipped From: American T-Shirt Co. - 1 Carrier: WILL CALL Carton No. Tracking No. MS Total4.00 4.00 0.00 Sub fatal laced by: dens Handling Fee243.97 hared by: Steve GUI 9 0.00 STAT 1.22 Halms must be made and returned within 14 days of receipt of goods comply with terms 8 conditions as stated in the current price list.All ens must have a return authorization number and may be subject to BUYER'S SIGNATURE Freight 0.00 D% restocking charge. IA% interest will be charged on past due NOTE:PLEASE VERIFY TOTAL Invoice Total 245.19 aunts(18%annual rate). If action should be brought to collect on BOXES/BAGS OF SHIRTS Applied OR/CR 0.00 aunt,customer agrees to be responsible ler attorney fees and court ts.All returned checks will be subject to a$25.00 service charge. Total Paid 245.19 Please Pay D.DD EASE PAY FROM THIS INVOICE MAHALO FOR YOUR ORDER IIIII INVOICE IIIMIffIIIIN s REMIT TO: AMERICAN American T-Shirt Co. ,^;{_mei Np 11 T-SHIRT COMPANY 1217 NO. KING STREET f7icENO IS 1217 North ang Sr. HONOLULU HI 96817 t ' 5iee OAT¢F 04/11/2016 Honolulu.496817 6lcii ouBpATE: 04/13/2016 PH:030Iu,HI4469 Me FAX WOa)1342-1911 ��'o`�A OUNT NoL wwwamerlcant shlrt.corn ,nfo®amencantswrtcom =? ,a. g�° .('A(dE Ntit I SHIP TO: Attn: yDee�nnis VILLLApGE ANIMA SPORTS VILLAGEEANIMALNIPORTS ATFN99 '• DENNIS NSHI 99 HILL HI 96720 A ILO SHIKUSA96720 sA RJNe ys 4.t1WABHIRnt1A RoRP R 'y :U- ^ Sktuotgy:Ac;;rRrj nv. ' vite 1 04/13/2016 HIPAL UNE, .:7 119 1. s'.iIL4,$FgN!t63Y3zp,.. .tela.,m "aaNaafart Y PRtWW1 UPM`. . 1 00200625 ItAN5250 LG Black Tagless T 6.00 6.00 0.00 1.8900 EA 11.34 2 00200626 IiAN5250 XL Black Tagless T 12.00 12.00 0.00 1.8900 EA 22.68 3 00200627 HAN5250 2X Black Tagless T 12.00 12.00 0.00 3.8900 EA 46.68 4 00200628 HAN5250 3X Black Tagless T 6.00 6.00 0.00 5.2300 EA 31.38 Shipped From: American T-Shirt Co. - 1 Carrier: WILL CALL Carton No. Tracking No. Total 36.00 36.00 0.00 Sub Total 112.08 Placed by: freshl9 Handling Fee 0.00 Entered by: WE8-freshl9 STAT 0.56 All claims must be made and returned within 14 days of receipt of goods and comply with terms&conditions as stated In the current price list.All returns must have a return authorization number and may be subject to BUYER'S SIGNATURE Freight 0.00 a 20% restocking charge. 114% Interest will be charged on past due NOTE:PLEASE VERIFY TOTAL Invoice Total 112,64 accounts(18%annual rate). If action should be brought to collect on BOXES/BAGS OF SHIRTS Applied OR/CR 0.00 account,customer agrees to be responsible for attorney fees and court Total Remitted costs.All returned checks will be subject to a$25.00 service charge. 11264 PLEASE PAY FROM THIS INVOICE MAHALO FOR YOUR ORDER Net Due 0.00 Onishi, Dennis From: Onishi, Dennis Sent: Monday,April 25, 2016 10:13 AM To: 'Donald Rudny' Subject: RE:GET Surcharge Hi Mr. Rudny, No, I haven't seen anything in the papers too. Thanks, Council member Fresh Onishi From: Donald Rudny [mailto:mkea13S00@gmail.com] Sent:Sunday,April 24, 2016 8:50 PM To:Onishi, Dennis<Dennis.Onishi@hawaiicounty.gov> Subject:Re: GET Surcharge Mr. Onishi, I did not. I sent her an email about it,but did not get a response. Did you see it? Maybe I missed it. Don Donald Rudny P.O. Box 106 28-624 Airstrip Rd. Pepeekeo, HI 96783 312-209-5870 On Apr 24, 2016, at 2:24 PM, "Onishi,Dennis' <Dennis.Onishku:hawaiicounty.vov>wrote: Hi Mr. Runny, Did you get to see Nancy's correction in the newspaper? Thanks, Council member Fresh Onishi Original Message------ Subject: Re: GET Surcharge From: "Onishi, Dennis" <Dennis.Onishi@hawaiicounty.gov> t Sent: Friday,April 22, 2016, 6:24 AM To: Donald Rudny<mkea13800@Rmail.com> CC: Ili Mr. Rudy, owe all the credit to and your interest for the people of this County. I hope you continue to inquire to issues that will be facing our people. Thank you, Council Member Fresh Onishi Sent from my iPad On Apr 21, 2016, at 11:57 PM, "Donald Rudny" <mkea13800'cilamail.com> wrote: Aloha Mr. Onishi, Thought you would be interested in this. Don Donald Rudny P.O. Box 106 28-624 Airstrip Rd. Pepeekeo,HI 96783 312-209-5870 Begin forwarded message: From: Nancy Cook-Lauer<ncook-lauertdwcsthawaiitoday.com> Date: April 21, 2016 at 3:33:04 PM HST To: Donald Rudny <mkea1380O Igmail.corn> Subject: Re: CET Surcharge Yes, you are right. The state Tax Department verified it today, and I have corrected the online version. There will be a correction in the print versions tomorrow. Thanks for setting us straight. :) N 2 Nancy Cook Lauer West Hawaii Today 808.464.9709(c) www.westhawaiitoday.com n cook-la u er(a�we sth awa i itod ay.corn On Wed, Apr 20, 2016 at 9:07 AM,Nancy Cook-Lauer<ncook- laucrriiwesthawaiitoday.com> wrote: Don, Mahalo for reading West Hawaii Today and the Hawaii Tribune- Herald. You have raised an interesting point, which I have not heard before. I will check with the state Department of Taxation and ask these questions. Of course,if the article is wrong, it is our newspaper's policy to write corrections. That goes without saying. Thanks for your interest. N Nancy Cook Lauer West Hawaii Today 808.464.9709(c) www.westhawaiitoday.com ncook-Iauer a(7.westhawaiitoday.com On Wed, Apr 20,2016 at 8:11 AM, Donald Rudny <mkca 13800!a:i mail.com> wrote: Aloha Nancy, I read your story on the GET hearing in the 11TH this morning and think you should check out how the tax is applied. In one paragraph you wrote about the pyramiding that occurs. My 3 understanding from a meeting I had with Mr. Onishi on the tax is that it is a surcharge and will be applied on the final retail sale only, so it should not increase the cost of goods sold in the retail stores through pyramiding. It is not really an increase in the GET, but a surcharge. I would suggest that you speak with Mr. Onishi to get the correct information. He appears to be very knowledgeable on the subject. You can share my name and this email with him if you wish. If I am correct on this,the paper should print a clarification. It is an important point. If I am wrong, please let me know. Thanks, Don nn, IL ;12-2095870 4