GET; County Reimbursement

Authorizes the reimbursement of general excise tax (GET) amounts
to counties for GET passed on to the counties. 

THE SENATE                              S.B. NO.           2308
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-    Reimbursement for amounts of taxes passed on to
 5 county governments by licensees.  (a)  Each county shall be
 6 reimbursed for amounts of general excise taxes passed on to them
 7 by licensees under this chapter and paid by the county after
 8 June 30, 2001.  Each county shall submit an itemized claim to and
 9 in the form prescribed by the director of finance for
10 reimbursement of general excise taxes passed on to them by
11 licensees under this chapter and paid by the county after
12 June 30, 2001.  The claim shall be made within thirty days
13 following January 1 and July 1 of each year.  The director of
14 finance shall review the itemized claim and pay the amount due to
15 become a general realization of the county.  Payment shall be
16 made out of the special accounts created in section 237-31.
17      (b)  The director of finance may request supporting
18 documentation for any itemized claim, before making
19 reimbursement.

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                                     S.B. NO.           2308

 1      (c)  Reimbursements to each county shall be made for general
 2 excise taxes passed on to each county by licensees after June 30,
 3 2001, on the following schedule:
 4      (1)  For taxes passed on in fiscal years 2001-2002 and
 5           2002-2003, twenty-five per cent of the total itemized
 6           claim made by each county; and
 7      (2)  For taxes passed on in fiscal years 2003-2004 and
 8           2004-2005, fifty per cent of the total itemized claim
 9           made by each county."
10      SECTION 2.  Section 237-31, Hawaii Revised Statutes, is
11 amended to read as follows:
12      "237-31  Remittances.  All remittances of taxes imposed by
13 this chapter shall be made by money, bank draft, check, cashier's
14 check, money order, or certificate of deposit to the office of
15 the department of taxation to which the return was transmitted.
16 The department shall issue its receipts therefor to the taxpayer
17 and shall pay the moneys into the state treasury as a state
18 realization, to be kept and accounted for as provided by law;
19 provided that:
20      (1)  The sum from all general excise tax revenues realized
21           by the State that represents the difference between
22           $45,000,000 and the proceeds from the sale of any
23           general obligation bonds authorized for that fiscal

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                                     S.B. NO.           2308

 1           year for the purposes of the state educational
 2           facilities improvement special fund shall be deposited
 3           in the state treasury in each fiscal year to the credit
 4           of the state educational facilities improvement special
 5           fund;
 6      (2)  A sum, not to exceed $5,000,000, from all general
 7           excise tax revenues realized by the State shall be
 8           deposited in the state treasury in each fiscal year to
 9           the credit of the compound interest bond reserve fund;
10           [and]
11      (3)  A sum, not to exceed the amount necessary to meet the
12           obligations of the integrated tax information
13           management systems performance-based contract may be
14           retained and deposited in the state treasury to the
15           credit of the integrated tax information management
16           systems special fund.  The sum retained by the director
17           of taxation for deposit to the integrated tax
18           information managements systems special fund for each
19           fiscal year shall be limited to amounts appropriated by
20           the legislature.  This paragraph shall be repealed on
21           July 1, 2004[.]; and
22      (4)  A sum, necessary to make reimbursement payments to each
23           county under section 237-  , shall be kept by the

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                                     S.B. NO.           2308

 1           director of finance in separate accounts for
 2           distribution as provided in section 237-  ."
 3      SECTION 3.  Statutory material to be repealed in bracketed.
 4 New statutory material is underscored.
 5      SECTION 4.  This Act shall take effect on July 1, 2000.
 7                           INTRODUCED BY:  _______________________