Report Title:

County Surcharge on State Tax; Ordinance; Extension of Deadline

 

Description:

Authorizes a county to adopt an ordinance to levy a county surcharge on state tax to fund public transportation systems through 12/31/2010.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2992

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to taxation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that Act 247, Session Laws of Hawaii 2005, authorized counties to levy a county surcharge on state tax to fund public transportation systems in their respective counties.  Section 9 of Act 247, Session Laws of Hawaii 2005, provides that 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 Act 247 unless otherwise authorized by the legislature through a separate legislative act.

     The purpose of this Act is to authorize, until December 31, 2010, a county that has not adopted an ordinance to levy a county surcharge on state tax to fund a public transportation system pursuant to Act 247, Session Laws of Hawaii 2005.

     SECTION 2.  Section 46-16.8, Hawaii Revised Statutes, is amended by amending subsections (a) to (c) to read as follows:

     "(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[;], or December 31, 2010, as applicable; and

     (3)  No county surcharge on state tax that may be authorized under this section shall be levied prior to January 1, 2007[.], or January 1, 2012, as applicable.

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.

     (b)  A county electing to exercise the authority granted under this section 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, or January 1, 2012, as applicable, the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax.

     (c)  Each county with a population greater than five hundred thousand that adopts a county surcharge on state tax ordinance pursuant to subsection (a) shall use the surcharges received from the State for:

     (1)  Operating or capital costs of a locally preferred alternative for a mass transit project; and

     (2)  Expenses in complying with the Americans with Disabilities Act of 1990 with respect to paragraph (1).

The county surcharge on state tax shall not be used to build or repair public roads or highways, bicycle paths, or support public transportation systems already in existence prior to July 12, 2005[.], or July 1, 2008, as applicable."

     SECTION 3.  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 pursuant to section 46-16.8(a) shall be levied beginning in the taxable year after the adoption of the relevant county ordinance; provided that no surcharge on state tax may be levied prior to January 1, 2007[.], or January 1, 2012, as applicable."

     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 shall be levied beginning in the taxable year after the adoption of the relevant county ordinance; provided that no surcharge on state tax may be levied prior to January 1, 2007[.], or January 1, 2012, as applicable."

     SECTION 5.  Any county that has not adopted an ordinance to levy a county surcharge on state tax by December 31, 2005, pursuant to Act 247, Session Laws of Hawaii 2005, may adopt such an ordinance, by December 31, 2010, to fund public transportation systems in its respective county pursuant to Act 247, Session Laws of Hawaii 2005.

     SECTION 6.  Act 247, Session Laws of Hawaii 2005, 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, or by December 31, 2010, as applicable, 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] a county does not adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, or by December 31, 2010, as applicable, it shall be prohibited from adopting such an ordinance pursuant to this Act, unless otherwise authorized by the legislature through a separate legislative act;

     (3)  If an ordinance to levy a county surcharge on state tax is adopted by December 31, 2005[:], or by December 31, 2010, as applicable:

         (A)  The ordinance shall be repealed on December 31, 2022[;], or on December 31, 2027, as applicable;

         (B)  This Act shall be repealed on December 31, 2022[;], or on December 31, 2027, as applicable; and

         (C)  [Section] On December 31, 2027, 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."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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