County Revenues

Exempts counties from excise tax payments; allocates a
proportionate percentage of public services company tax to each
county; allows counties to assess vehicle ad valorem tax;
requires court to reimburse counties for overtime pay to police
officer witnesses in court; and allocates a proportionate
percentage of traffic fines to each county.

THE SENATE                              S.B. NO.           2028
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 237, Hawaii Revised Statutes, is amended
 2 by adding a new section to be appropriately designated and to
 3 read as follows:
 4      "237-     Exemption for amounts received from counties.
 5 Amounts received by a taxpayer from a county shall be exempt from
 6 the tax imposed under this chapter."
 7      SECTION 2.  Chapter 249, Hawaii Revised Statutes, is amended
 8 by adding a new section to be appropriately designated and to
 9 read as follows:
10      "249-     County vehicle ad valorem tax.  In addition to
11 the tax under section 249-2 and the fee under section 249-31,
12 each county may impose a tax based on the fair market value of a
13 vehicle located in the county.  The tax shall be established by
14 county ordinance; provided that sections 249-4, 249-6, and 249-33
15 shall apply."
16      SECTION 3.  Chapter 607, Hawaii Revised Statutes, is amended
17 by adding a new section to be appropriately designated and to
18 read as follows:
19      "607-     Reimbursement to counties for overtime of police
20 witnesses.  In addition to the witness fees under section 607-12,

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 1 the court shall reimburse a county for the amount of overtime
 2 compensation paid by the county to a police officer for time
 3 spent testifying under subpoena in a trial or hearing in court."
 4      SECTION 4.  Section 239-10, Hawaii Revised Statutes, is
 5 amended to read as follows:
 6      "239-10  Disposition of revenues.  (a)  All taxes collected
 7 under this chapter shall be state realizations[.]; provided that
 8 after June 30, 2000, the amount of taxes collected under section
 9 239-5(a) from levy and assessment after June 30, 2000, in excess
10 of four per cent of a public service company's gross income shall
11 be kept by the state director of finance in special accounts in
12 the state treasury.  Out of these special accounts, the state
13 director of finance in carrying out this section shall deduct any
14 cost incurred by the State in collecting the tax under this
15 chapter or in maintaining the special accounts and shall then pay
16 the remaining balance to each county as provided in this section.
17      The payments made by the state director of finance to a
18 county shall be made as soon as possible after the taxes
19 collected under this chapter have been paid into the special
20 accounts.
21      (b)  The director of taxation shall establish by August 1 of
22 each year that portion of taxes collected during the state fiscal
23 year under section 239-5(a) to be paid into the special accounts,

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 1 and the county, except for the county of Kalawao, to which the
 2 taxes should be distributed.  The amount of taxes in the special
 3 accounts to be paid over to each county shall be based upon the
 4 proportional contribution of actual tax receipts generated within
 5 each county, taking into account a proportionate share of refunds
 6 to taxpayers and contingent liabilities, such as tax appeals.
 7      (c)  No county shall have the right to appeal any assessment
 8 of the public service company tax on a public utility subject to
 9 section 239-5(a), nor shall any county have access to any tax
10 returns or tax return information submitted to the department of
11 taxation under this chapter.
12      (d)  No county levying a real property tax on any person
13 subject to taxation under section 239-5(a) shall receive any tax
14 moneys under this section.  All taxes kept in the county's
15 special account and designated as payable to the county under
16 this section shall be paid by the state director of finance to
17 the state general fund upon the date the county first levies the
18 real property tax and thereafter."
19      SECTION 5.  Section 291C-171, Hawaii Revised Statutes, is
20 amended to read as follows:
21      "291C-171  Disposition of fines and forfeitures.(a)  All
22 fines and forfeitures collected upon conviction or upon the
23 forfeiture of bail of any person charged with a violation of any

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 1 section or provision of the state traffic laws and all
 2 assessments collected relating to the commission of traffic
 3 infractions shall be paid to the director of finance of the
 4 State[.] who shall transfer            per cent of all fines,
 5 forfeitures, and assessments generated within a county to that
 6 county, excluding monetary penalties resulting from offenses
 7 under section 291-4, 291-4.3, and 291-4.4.  No later than forty-
 8 five days after the close of each calendar quarter, the director
 9 of finance for the State shall deposit into the general fund of
10 each county the fines, forfeitures, and assessments collected by
11 the district courts in that county in the percentage prescribed
12 in this section.
13      (b)  In addition to any monetary assessment imposed for a
14 traffic infraction, the court may impose penalties on all
15 outstanding traffic citations and judgments.  The penalties shall
16 be established pursuant to rules approved by the supreme court;
17 provided that the amounts of the penalties shall be based upon a
18 graduated scale that increases in proportion to the length of the
19 delinquency.  Any interest penalty imposed as provided in this
20 section may be waived by the court for good cause.  All penalties
21 collected for such outstanding citations and judgments shall be
22 paid to the director of finance of the State[.] and distributed
23 after collection as provided in subsection (a)."

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                                     S.B. NO.           2028

 1      SECTION 6.  Statutory material to be repealed is bracketed.
 2 New statutory material is underscored.
 3      SECTION 7.  This Act shall take effect upon its approval.
 5                           INTRODUCED BY:  _______________________