Hawaii-2012-SB2946-Amended

SECTION 1. The purpose of this Act is to:

(1) Extend the increase in the rental motor vehicle surcharge tax under section 251-2(a), Hawaii Revised Statutes, to $7.50 per day until June 30, 2016, and extend the deposit of $4.50 per day of the tax revenue up to a specified amount into the general fund until June 30, 2016 and deposit a specified amount of the tax revenue and any remainder of the tax revenue into the rental motor vehicle customer facility charge special fund; and

(2) Extend the suspension of rental motor vehicle customer facility charges formerly established under section 261-7(h), Hawaii Revised Statutes, until June 30, 2016.

SECTION 2. Section 251-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $7.50 a day, except that after June 30, [~~2012,~~] 2016, the tax shall be $3 a day, or any portion of a day that a rental motor vehicle is rented or leased. The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:

(1) The lessor is renting the vehicle to replace a vehicle of the lessee that is being repaired; and

(2) A record of the repair order for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16."

SECTION 3. Act 104, Session Laws of Hawaii 2011, is amended by amending section 8 to read as follows:

"SECTION 8. This Act shall take effect on June 30, 2011; provided that part II of this Act shall take effect on July 1, 2011; provided further that on June 30, [~~2012,~~] 2016, sections 4 and 5 of this Act shall be repealed and sections 251-5 and 261‑7, Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act."

SECTION 4. Section 251-5, Hawaii Revised Statutes, is amended to read as follows:

"§251-5 Remittances. All remittances of surcharge taxes imposed under this chapter shall be made by cash, bank draft, cashier's check, money order, or certificate of deposit to the office of the taxation district to which the return was transmitted. The department shall [~~deposit the moneys into the state treasury to the credit of the state highway fund; provided that of~~] transmit the rental motor vehicle surcharge taxes assessed and collected pursuant to section 251-2(a)[~~, the equivalent of $4.50 of the tax assessed and collected per day shall be deposited into the state treasury to the credit of the general fund.~~] to the director of finance, who shall deposit the moneys into the state treasury in the order and as set forth below:

(1) In each of fiscal years 2012-2013 and 2013-2014:

(A) An amount equal to $3 per day per rental transaction shall be deposited into the state highway fund established pursuant to section 248-8;

(B) $ shall be deposited into the rental motor vehicle customer facility charge special fund established pursuant to section 261-5.6;

(D) The remainder shall be deposited into the rental motor vehicle customer facility charge special fund established pursuant to section 261-5.6; and

(2) In each of fiscal years 2014-2015 and 2015-2016:

(A) An amount equal to $3 per day per rental transaction shall be deposited into the state highway fund established pursuant to section 248-8;

(B) $ shall be deposited into the rental motor vehicle customer facility charge special fund established pursuant to section 261-5.6;

(D) The remainder shall be deposited into the rental motor vehicle customer facility charge special fund established pursuant to section 261-5.6."

SECTION 5. The department of transportation is authorized to issue rental motor vehicle customer facility revenue bonds in an amount not to exceed $500,000,000, in one or more series, from time to time, as determined by the director of transportation, for the enhancement and renovation of existing rental motor vehicle customer facilities and the development of new rental motor vehicle customer facilities, and if so determined by the department and approved by the governor, any additional principal amount as may be necessary for the department to pay interest on the revenue bonds during the estimated period of enhancement, renovation, or construction of the rental motor vehicle customer facility project for which the revenue bonds are issued, to establish, maintain, or increase reserves for the revenue bonds and to pay the expenses of issuance of the bonds. The principal, interest, and premium, if any, on such revenue bonds, to the extent not paid from the proceeds of such revenue bonds, shall be paid solely from and secured solely by rental motor vehicle surcharge taxes and rental motor vehicle customer facility charges deposited in the rental motor vehicle customer facility charge special fund established by section 261-5.6, Hawaii Revised Statutes, and designated for payment thereof, which rental motor vehicle surcharge taxes and rental motor vehicle customer facility charges shall be pledged to payment of such revenue bonds. The rental motor vehicle surcharge tax and rental motor vehicle customer facility charge shall both be a charge for the use and services of an undertaking for the purposes and within the meaning of section 39-61(a)(1) and (3), Hawaii Revised Statutes. The revenue bonds shall be issued pursuant to the provisions of part III of chapter 39, Hawaii Revised Statutes, as the same may be amended from time to time.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on June 29, 2012; provided that sections 4 and 5 shall take effect on July 1, 2012.

THE SENATE	S.B. NO.	2946
TWENTY-SIXTH LEGISLATURE, 2012		S.D. 2
STATE OF HAWAII		H.D. 2