HomeMy WebLinkAboutCOM 0958.002 2016-2018v40Yokt .,,
From the office o P.• •.''•:,, Office: (808)961-8396
b14. Fax (808)961-8912CouncilMember
District 3—Hilo and Puna cam. -'.•,r• Email sue.leeloy@hawazzcounty.gov
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SUSAN L.K. LEE LOY gap 47,
co or)25 Aupuni Street,Hilo,Hawai`i 96720
TO: Valerie T. Poindexter, Chair 1 "'S'
and Members of the Hawai`i County Council n
FROM: Sue Lee Loy, Co cil i.,s-4bar yv
r
DATE: June 6, 2018
SUBJECT: Proposed Amendment to Bill No. 159; An Ordinance Amending Chapter 2 of the
Hawai`i County Code 1983 (2016 Edition, as Amended) by Adding a New Article
Relating.to Transportation Surcharge and Creating the General Excise Tax Fund.
Please see below proposed amendments to Bill No. 159,to amend Section 2 by amending the
repeal date. The proposed change inserts a repeal date of December 31, 2020, unless
otherwise extended by ordinance, provided that such General Excise and Use Tax surcharge
shall not extend beyond December 31, 2030.
The proposed amendment is illustrated below in Ramseyer format with respect to the contents of
Bill No. 159. Material to be deleted is bracketed and stricken; material to be added is
underscored. Due to the limited scope ofthis amendment, a draft copy of Bill No. 159, Draft 2, is
intentionally omitted.
SECTION 2 of Bill No. 159 is amended to read as follows:
SECTION 2. Chapter 2 of the Hawai`i County Code 1983 (2016 Edition) is amended
by adding a new article to read as follows:
Article
Article_ . Transportation Surcharge.
Section -1.. Establishment of Surcharge.
Pursuant to Act 011, Session Laws of Hawai`i 2018, codified as Section 46-16.8
Hawai`i Revised Statutes, as amended, it is hereby established a one-quarter percent
0.25%) general excise and use tax surcharge to be used for purposes of funding the
operating or capital costs of public transportation within the County of Hawai`i. The
excise and use tax surcharge shall be levied beginning January 1, 2019.
Section_-2. General Excise Tax Fund.
Pursuant to Article X, Section 10-12, Hawaii County Charter 2016,the
Director of Finance is authorized to create a special fund to be known as the
General Excise Tax Fund." All monies received from the state derived from the
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imposition of the surcharge established under this article shall be deposited into
the General Excise Tax Fund.
Section -3. Use of Funds.
a) Pursuant to Sections 46-16.8 and 248-2.6, Hawai`i Revised Statutes, moneys
received from the state derived from the imposition of the surcharge established under
this article will be a general fund realization. Moneys received from the surcharge shall
be expended for:
1) Operating or capital costs of public transportation within the county for
public systems, including public roadways or highways,public buses, trains, ferries,
pedestrian paths or sidewalks or bicycle paths, and
2) Expenses in complying with the Americans with Disabilities Act of
1990 with respect to paragraph(1).
b) "Capital costs" in this section means nonrecurring costs required to construct
a transit facility or system, including debt service, costs of land acquisition and
development, acquiring rights-of-way, planning, design and construction, and including
equipping and furnishing the facility or system.
c) Any balance remaining in the General Excise Tax Fund at the end of any fiscal
year shall not lapse, but shall remain in the fund accumulating from year to year. The
moneys in this fund shall not be used for any purpose except those listed in this section,
or as allowed by any amendments to Sections 46-16.8 and 248-2.6, Hawai`i Revised
Statutes.
Section_4. Termination of Surcharge.
I A I ! i
2030.] Unless otherwise extended by ordinance, this article will be repealed on December
31, 2020; provided that this General Excise and Use Tax surcharge shall not extend
beyond December 31, 2030, pursuant to Act 011, Session Laws of Hawaii, codified as
Section 46-16.8 of Hawai`i Revised Statutes,as amended."
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