Bill Text: HI SB1372 | 2016 | Regular Session | Introduced
Bill Title: County Surcharge on State Tax; Transit-oriented Development; Transportation
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2016-01-21 - Re-Referred to TRE/PSM/HOU, WAM. [SB1372 Detail]
Download: Hawaii-2016-SB1372-Introduced.html
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THE SENATE |
S.B. NO. |
1372 |
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TWENTY-EIGHTH LEGISLATURE, 2015 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to transportation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that any portion of the county surcharge on state tax that is retained by the State, in excess of the administrative costs, should be used for transit-oriented development. In 2005, the legislature authorized the counties to adopt a 0.5 per cent surcharge on the state general excise tax to fund transit-oriented development projects. The city and county of Honolulu adopted an ordinance establishing a 0.5 per cent surcharge on the general excise tax on business transactions on Oahu. No other county adopted a surcharge as authorized by the legislature. Section 248-2.6, Hawaii Revised Statutes, detailing the disposition of county surcharge proceeds, provides a ten per cent withholding of surcharge funds by the state to cover the costs of assessment, collection, and disposition of county surcharges on state tax.
As of June 30, 2014, about $242,000,000 was collected under the county surcharge, and about $24,200,000 of that was kept by the State to cover costs associated with administering the surcharge. The legislature finds that because the amounts collected by the State for administration of the county surcharge likely exceed the actual costs of administration, the remaining funds should be used by the State for transit-oriented development.
The purpose of this Act is to direct the portion of the county surcharge on state tax retained by the State in excess of administrative costs to fund transit-oriented development.
SECTION 2. Section 248-2.6, Hawaii Revised Statutes, is amended to read as follows:
"[[]§248-2.6[]]
County surcharge on state tax; disposition of proceeds. (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 ten per cent of the gross
proceeds of a respective county's surcharge on state tax and deposit the
deducted amount into the dwelling unit revolving fund established under section
201H-191 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.] and
to fund transit-oriented development.
(b) The amounts [deducted for costs of
assessment, collection, and disposition of county surcharges on state tax] deposited
into the dwelling unit revolving fund shall be withheld from payment to the
counties by the State out of the county surcharges on state tax collected for
the current calendar year.
[(c) For the purpose of this section, the
costs of assessment, collection, and disposition of the county surcharges on
state tax shall include any and all costs, direct or indirect, that are deemed
necessary and proper to effectively administer this section and sections
237-8.6 and 238-2.6.
(d)] (c) After the deduction,
deposit, and withholding of [the costs] funds under
subsections (a) and (b), the director of finance shall pay the remaining
balance on [[]a[]] quarterly basis to the director of finance of
each county that has adopted a county surcharge on state tax under section
46-16.8. The quarterly payments shall be made after the county surcharges on
state tax have been paid into the state treasury special accounts or after the
disposition of any tax appeal, as the case may be. All county surcharges on state
tax collected shall be distributed by the director of finance to the county in
which the county surcharge on state tax is generated and shall be a general
fund realization of the county, to be used for the purposes specified in
section 46-16.8 by each of the counties."
SECTION 3. Section 201H-191, Hawaii Revised Statutes, is amended to read as follows:
"[[]§201H-191[]]
Dwelling unit revolving fund. (a) There is created a dwelling unit
revolving fund. The funds appropriated for the purpose of the dwelling unit
revolving fund and all moneys received or collected by the corporation for the
purpose of the revolving fund shall be deposited in the revolving fund. The
proceeds in the revolving fund shall be used to reimburse the general fund to
pay the interest on general obligation bonds issued for the purposes of the
revolving fund, for the necessary expenses in administering housing development
programs, and for carrying out the purposes of housing development programs,
including but not limited to the expansion of community facilities constructed
in conjunction with housing projects, permanent primary or secondary financing,
and supplementing building costs, federal guarantees required for operational
losses, and all things required by any federal agency in the construction and
receipt of federal funds or low‑income housing tax credits for housing
projects.
(b) Funds deposited into the dwelling unit revolving fund pursuant to section 248-2.6 shall be expended for the following purposes:
(1) Reimbursing the State for the costs of assessment, collection, and disposition of the county surcharge on state tax authorized by section 46-16.8; and
(2) Developing infrastructure and housing related to transit-oriented development projects within a half-mile radius of a rail transit station.
(c) For the purpose of this section, the costs of assessment, collection, and disposition of the county surcharges on state tax shall include any and all costs, direct or indirect, that are deemed necessary and proper to effectively administer this section and sections 237-8.6, 238-2.6, and 248‑2.6."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2015.
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INTRODUCED BY: |
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Report Title:
County Surcharge on State Tax; Transit-oriented Development; Transportation
Description:
Allocates the portion of the county surcharge on state tax retained by the state to the dwelling unit revolving fund. Directs those funds deposited pursuant to the county surcharge on state tax to be used to reimburse the State for the costs of assessment, collection, and disposition of the county surcharge on state tax and for transit-oriented development.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
