Bill Text: HI HB2519 | 2018 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-29 - Referred to TRN, TOU, FIN, referral sheet 9 [HB2519 Detail]
Download: Hawaii-2018-HB2519-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2519 |
TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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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:
"§46-16.8 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) No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted prior to December 31, 2005; and
(3) No county
surcharge on state tax that may be authorized under this subsection shall be
levied prior to January 1, 2007, or after December 31, [2022,] 2035;
unless extended pursuant to subsection (b).
Notice of the public hearing required under paragraph (1) 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.
A county electing to exercise the authority granted under this subsection 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.
(b)
Each county that has established a surcharge on state tax prior to July
1, 2015, under authority of subsection (a) may extend the surcharge until
December 31, [2030,] 2035, at the same rates. A county electing to extend this surcharge
shall do so by ordinance; provided that:
(1) No ordinance shall
be adopted until the county has conducted a public hearing on the proposed
ordinance; [and]
(2) The ordinance
shall be adopted prior to January 1, 2018[.]; and
(3) If the county
that elects to extend the surcharge is a county with a population greater than
five hundred thousand, then the county shall not levy a county surcharge on
state tax if, prior to December 31, 2035, the revenues collected through the
county surcharge established under this section and sections 237-8.6 and
238-2.6 and the additional transient accommodations tax established under
section 237D-2(e) exceed the annual debt service following the completed
construction of the minimum operable segment of the locally preferred
alternative for a mass transit project.
As used in this paragraph, "annual debt service" means debt
service principal, debt service interest, transfer to and from reserve, and
other debt service fees as referenced in the 2017 financial plan prepared by a
county rapid transportation authority subject to section 23-14 and accepted by
the Federal Transit Administration.
A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted an ordinance extending the surcharge on state tax. The director of taxation shall levy, assess, collect, and otherwise administer the extended surcharge on state tax.
(c) Each county that has not established a surcharge on state tax prior to July 1, 2015, may establish the surcharge 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) No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted prior to March 31, 2018; and
(3) No county
surcharge on state tax that may be authorized under this subsection shall be
levied prior to January 1, 2019, or after December 31, [2030.] 2035.
A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted a surcharge on state tax ordinance. Beginning on January 1, 2019, the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax.
(d) Notice of the public hearing required under subsection (b) or (c) before adoption of an ordinance establishing or extending the surcharge on state tax 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.
(e)
Each county with a population greater than five hundred thousand that
adopts or extends a county surcharge on state tax ordinance pursuant to
subsection (a) or (b) shall use the surcharge revenues received from the State
for [capital] costs of a locally preferred alternative for a mass
transit project[; provided that revenues derived from the county surcharge
on state tax shall not be used:
(1) To build or
repair public roads or highways, bicycle paths, or support public
transportation systems already in existence prior to July 12, 2005;
(2) For operating
costs or maintenance costs of the mass transit project or any purpose not
consistent with this subsection; or
(3) For
administrative or operating, marketing, or maintenance costs, including
personnel costs, of a rapid transportation authority charged with the
responsibility for constructing, operating, or maintaining the mass transit project;
provided further that nothing in this section
shall be construed to prohibit a county from using county funds that are not
derived from a surcharge on state tax for a purpose described in paragraph (2)
or (3)].
(f) Each county with a population equal to or less than five hundred thousand that adopts a county surcharge on state tax ordinance pursuant to this section shall use the surcharges received from the State for:
(1) [Operating or
capital costs] Costs of public transportation within each county for
public transportation 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).
[(g) 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. For a county with a population greater than
five hundred thousand, capital costs also include non-recurring personal
services and other overhead costs that are not intended to continue after
completion of construction of the minimum operable segment of the locally
preferred alternative for a mass transit project.]"
SECTION 2. Section 237-8.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Each county surcharge
on state tax that may be adopted or extended pursuant to section 46-16.8 shall
be levied beginning in a taxable year after the adoption of the relevant county
ordinance; provided that no surcharge on state tax may be levied:
(1) Prior to:
(A) January 1, 2007, if the county surcharge on state tax was established by an ordinance adopted prior to December 31, 2005; or
(B) January 1, 2019, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but prior to March 31, 2018; and
(2) After December 31,
[2030.] 2035; provided that a county with a population greater than
five hundred thousand shall not levy a county surcharge on state tax if, prior
to December 31, 2035, the revenues collected through the county surcharge
established under this section and sections 46-16.8 and 238-2.6 and the
additional transient accommodations tax established under section 237D-2(e) exceed
the annual debt service following the completed construction of the minimum
operable segment of the locally preferred alternative for a mass transit
project. As used in this paragraph,
"annual debt service" means debt service principal, debt service
interest, transfer to and from reserve, and other debt service fees as referenced
in the 2017 financial plan prepared by a county rapid transportation authority subject
to section 23-14 and accepted by the Federal Transit Administration."
SECTION 3. Section 237D-2, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:
"(e) Notwithstanding the tax rates established in
subsections (a)(5) and (c)(3), the tax rates levied, assessed, and collected
pursuant to subsections (a) and (c) shall be 10.25 per cent for transient
accommodations furnished in a county with a population greater than five
hundred thousand for the period beginning on January 1, 2018, to December
31, [2030;] 2035; provided that:
(1) The tax revenues
levied, assessed, and collected pursuant to this subsection that are in excess
of the revenues realized from the levy, assessment, and collection of tax at
the 9.25 per cent rate shall be deposited quarterly into the mass transit
special fund established under section 248-2.7; [and]
(2) If a court of
competent jurisdiction determines that the amount of county surcharge on state
tax revenues deducted and withheld by the State, pursuant to section 248-2.6,
violates statutory or constitutional law and, as a result, awards moneys to a
county with a population greater than five hundred thousand, then an amount
equal to the monetary award shall be deducted and withheld from the tax
revenues deposited under paragraph (1) into the mass transit special fund, and
those funds shall be a general fund realization of the State[.]; and
(3) If, prior to December
31, 2035, the revenues collected through the additional one per cent tax
established under this section and the county surcharge established under sections
46-16.8, 237-8.6, and 238-2.6 exceed the annual debt service following the
completed construction of the minimum operable segment of the locally preferred
alternative for a mass transit project, the tax rates levied, assessed, and
collected pursuant to subsections (a) and (c) shall be 9.25 per cent for
transient accommodations furnished in a county with a population greater than
five hundred thousand. As used in this
paragraph, "annual debt service" means debt service principal, debt
service interest, transfer to and from reserve, and other debt service fees as referenced
in the 2017 financial plan prepared by a county rapid transportation authority
subject to section 23-14 and accepted by the Federal Transit Administration.
The remaining tax revenues levied, assessed, and collected at the 9.25 per cent tax rate pursuant to subsections (a) and (c) shall be distributed in accordance with section 237D‑6.5(b)."
SECTION 4. Section 238-2.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Each county surcharge
on state tax that may be adopted or extended shall be levied beginning in a
taxable year after the adoption of the relevant county ordinance; provided that
no surcharge on state tax may be levied:
(1) Prior to:
(A) January 1, 2007, if the county surcharge on state tax was established by an ordinance adopted prior to December 31, 2005; or
(B) January 1, 2019, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but prior to March 31, 2018; and
(2) After December 31,
[2030.] 2035; provided that a county with a population greater than
five hundred thousand shall not levy a county surcharge on state tax if, prior
to December 31, 2035, the revenues collected through the county surcharge
established under this section and sections 46-16.8 and 237-8.6 and the
additional transient accommodations tax established under section 237D-2(e) exceed
the annual debt service following the completed construction of the minimum
operable segment of the locally preferred alternative for a mass transit
project. As used in this paragraph,
"annual debt service" means debt service principal, debt service
interest, transfer to and from reserve, and other debt service fees as
referenced in the 2017 financial plan prepared by a county rapid transportation
authority subject to section 23-14 and accepted by the Federal Transit
Administration."
SECTION 5. Section 248-2.7, Hawaii Revised Statutes, is amended to read as follows:
"[[]§248-2.7[]] Mass transit special fund; established;
distribution of funds. (a) There is established a mass transit special
fund to be administered by the department of budget and finance.
(b)
For the period beginning on January 1, 2018, to December 31, [2030,]
2035, transient accommodations tax and surcharge on state tax revenues
allocated to the mass transit special fund pursuant to sections 237D-2(e) and
248-2.6 shall be deposited into the special fund. All interest earned on the moneys in the
special fund shall be credited to the general fund. The mass transit special fund shall be exempt
from the central service expenses deduction under section 36-27 and
departmental administrative expenses deduction under section 36‑30.
(c)
[Upon receiving a certification statement from the comptroller
pursuant to section 40-81.5, the director of finance shall allocate and
disburse moneys in the mass transit special fund to the director of finance of
a county with a population greater than five hundred thousand; provided that
the director of finance shall only disburse those amounts that are certified in
the certification statement for that county for the purposes specified in
section 46-16.8; provided further that revenues allocated from the special fund
shall not be used for:
(1) Operating or
maintenance costs of the mass transit project or any purpose not consistent
with section 46-16.8(e); or
(2) Administrative,
operating, marketing, or maintenance costs, including personnel costs, of a
rapid transportation authority charged with the responsibility for
constructing, operating, or maintaining the mass transit project;
provided further that the total amount of funds
that are available, allocated, and disbursed by the director of finance
pursuant to this section shall not be in excess of the total amount indicated
on the certification statement.] The
director of finance may allocate and disburse moneys pursuant to this section
on a monthly basis.
Any amounts allocated and disbursed pursuant to this section shall be subject to the availability of funds deposited and on balance in the special fund. The director of finance shall not allocate or disburse any amounts from the special fund that are in excess of any amounts deposited and on balance in the special fund.
[(d) The director of finance shall post all
certification statements received from the comptroller pursuant to section
40-81.5 on the department of budget and finance's website within ten working
days of payments made pursuant to this section.]
[(e)] (d) The department of budget and finance shall
submit an annual report to the legislature not later than twenty days prior to
the convening of each regular session on the total amount of funds allocated
pursuant to this section.
[(f)] (e) The director of finance may establish rules,
exempt from chapter 91, for the purposes of this section."
SECTION 6. Act 247, Session Laws of Hawaii 2005, as amended by Act 240, Session Laws of Hawaii 2015, as amended by Act 1, First Special Session Laws of Hawaii 2017, is amended by amending section 9 to read as follows:
"SECTION 9. This Act shall take effect upon its approval; provided that:
(1) If none of the counties of the State adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, this Act shall be repealed and section 437D-8.4, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act;
(2) If any county does not adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, it shall be prohibited from adopting such an ordinance pursuant to this Act, unless otherwise authorized by the legislature through a separate legislative act; and
(3) If an ordinance to levy a county surcharge on state tax is adopted by December 31, 2005:
(A) The ordinance shall be repealed on December 31, 2022; provided that the repeal of the ordinance shall not affect the validity or effect of an ordinance to extend a surcharge on state tax adopted pursuant to an act of the legislature; and
(B) This Act shall be
repealed on December 31, [2030,] 2035, and section 437D-8.4, Hawaii
Revised Statutes, shall be reenacted in the form in which it read on the day
prior to the effective date of this Act; provided that the amendments made to
section 437D-8.4, Hawaii Revised Statutes, by Act 226, Session Laws of Hawaii
2008, as amended by Act 11, Session Laws of Hawaii 2009, and Act 110, Session
Laws of Hawaii 2014, shall not be repealed."
SECTION 7. Section 40-81.5, Hawaii Revised Statutes, is repealed.
"[[§40-81.5] Rapid transportation authority; certification
statement. (a) Beginning on September 5, 2017, and ending on
December 31, 2031, the comptroller, upon the request for payment by the rapid
transportation authority, shall verify that the authority's invoices for the
capital costs of a locally preferred alternative for a mass transit project
comply with section 46-16.8(e).
(b) The rapid transportation authority subject to
this section shall provide the comptroller with:
(1) The authority's
financial plan and related systems for accounting, including a budget for a
locally preferred alternative for a mass transit project;
(2) Expenditures
for capital costs for a locally preferred alternative for a mass transit
project;
(3) Expenditures
for personnel costs, lease rent, and any other costs associated with the
authority's management and operations; and
(4) Any other
information the comptroller may require to accomplish the purpose of this
section.
(c) After submission of invoices by the rapid
transportation authority for capital costs of a locally preferred alternative
for a mass transit project are verified by the comptroller as an acceptable use
of funds received pursuant to a surcharge on state tax authorized pursuant to
section 46-16.8, the comptroller shall submit a certification statement,
including any appropriate supporting documents, to the department of budget and
finance for the allocation of funds, if available, pursuant to sections 248-2.7
and 248-2.6(d). The certification
statement shall include, at a minimum, the total amount contained in the
invoices for capital costs that are verified as an appropriate use of funds
pursuant to section 46-16.8(e).
(d) The comptroller may establish rules, exempt
from chapter 91, for the purposes of this section.
(e) For the purposes of this section, "rapid
transportation authority" means any entity established by a county in the
State for the purpose of constructing, operating, or maintaining a locally
preferred alternative for a mass transit project and that receives moneys from
a surcharge on state tax established pursuant to section 46-16.8, transient
accommodations tax revenues pursuant to section 237D-2(e), or both.]"
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2018.
INTRODUCED
BY: |
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Report Title:
Taxation; General Excise Tax; Transient Accommodations Tax; Use Tax; County Surcharge
Description:
Extends
the county surcharge on the general excise tax and use tax through 2035. Repeals the county surcharge on the general
excise tax and use tax by a county with a population greater than 500,000 if,
prior to 12/31/2035, the revenues collected through the county surcharge exceed
the annual debt service following the completed construction of the minimum
operable segment of the locally preferred alternative for a mass transit
project. Makes the current transient
accommodations tax rate of 10.25% applicable only to transient accommodations
furnished in a county with a population greater than 500,000, extends the 10.25%
rate through 2035, and reduces the rate to 9.25% if, prior to 12/31/2035, the revenues
collected through the county surcharge exceed the annual debt service following
the completed construction of the minimum operable segment of the locally
preferred alternative for a mass transit project. Repeals requirement that the Director of Finance
only disburse surcharge revenues for certified costs incurred by a county to
build its mass transit project. Repeals
the requirement that a county with a population greater than 500,000 use funds
collected pursuant to a county surcharge only for capital costs associated with
the construction of a locally preferred alternative for a mass transit project.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.