HOUSE OF REPRESENTATIVES

H.B. NO.

1266

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO FERRIES.

 

 

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

 


     SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-      Ferry vessel tax credit.  (a)  Each principal operator of an inter-island ferry who files an individual or corporate net income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual or corporate net income tax.

     (b)  The tax credit shall be an amount equal to five per cent of the principal operator's individual or corporate income tax liability.

     (c)  The tax credit claimed under this section by the principal operator shall be deductible from the principal operator's individual or corporate income tax liability, if any, for the tax year in which the credit is properly claimed.

     (d)  The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

     (e)  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

     (f)  Claims for the tax credit under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed.  Failure to comply with this subsection shall constitute a waiver of the right to claim the credit.

     (g)  As used in this section:

     (1)  "Inter-island ferry" means any inter-island ferry vessel that is designed to transport and transports or is intended to transport per voyage at least four hundred passengers, along with motor vehicles and cargo between the islands of the State.

     (2)  "Principal operator" means any individual or corporate resident taxpayer who derives at least fifty-one per cent of the taxpayer's gross annual income from the inter-island ferry vessel operations."

     SECTION 2.  Section 266-13, Hawaii Revised Statutes, is amended to read as follows:

     "§266-13  Dockage.  (a)  All watercraft:

     (1)  Lying idle alongside any wharf, pier, bulkhead, quay, or landing belonging to or controlled by the State; or

     (2)  Discharging or receiving freight or passengers on or from any wharf, pier, bulkhead, quay, or landing belonging to or controlled by the State, while made fast or lying alongside of the wharf, pier, bulkhead, quay, or landing;

shall pay to the department of transportation [such] rates of dockage as shall be fixed by the department.

     (b)  All watercraft that receive or discharge freight or passengers:

     (1)  From or upon any wharf, pier, bulkhead, quay, or landing, by means of boats, lighters, or otherwise, while lying at anchor or under steam in any bay, harbor, or roadstead; or

     (2)  While lying in any slip or dock belonging to or controlled by the State, but not made fast to or lying alongside any wharf, pier, bulkhead, quay, or landing;

shall pay [such] rates of dockage as shall be fixed by the department.

     (c)  Notwithstanding subsections (a) and (b), the department may waive dockage and other charges at any wharf, pier, bulkhead, quay, landing, slip, or dock belonging to or controlled by the State whenever:

     (1)  The governor declares a state of emergency; and

     (2)  The department determines that the waiver of dockage fees and other charges is consistent with assisting in the delivery of humanitarian relief to disaster-stricken areas of the State.

     (d)  Notwithstanding subsections (a) and (b), the department of transportation may waive fifty per cent of dockage and other charges at any wharf, pier, bulkhead, quay, landing, slip, or dock belonging to or controlled by the State whenever the wharf, pier, bulkhead, quay, landing, slip, or dock belonging to or controlled by the State is used by an inter-island ferry; provided that the waiver of dockage and other charges by the department shall only be valid for the first twelve months that the inter-island ferry is in operation.

     For the purposes of this subsection, "inter-island ferry" means any inter-island ferry vessel that is designed to transport and transports or is intended to transport per voyage at least four hundred passengers, along with motor vehicles and cargo between the islands of the State.

     [(d)] (e)  Any watercraft leaving any wharf, pier, bulkhead, quay, landing, slip, dock, basin, or waters belonging to or controlled by the State without paying dockage and other charges, with intent to evade the payment thereof, shall be liable to pay double rates."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2010.

 

INTRODUCED BY:

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Report Title:

Harbors; Inter-island Ferry; Tax Credit

 

Description:

Provides a non-refundable tax credit of five percent and a fifty per cent reduction in harbor fees for the first year of operation for any company operating an inter-island ferry vessel.

 

 

 

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