REPORT TITLE:
GET; County Reimbursement


DESCRIPTION:
Authorizes the reimbursement of general excise tax (GET) amounts
to counties for GET passed on to the counties.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2308
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION.


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

 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.
 
20      (c)  Reimbursements to each county shall be made for general
 

 
Page 2                                                     2308
                                     S.B. NO.           S.D. 2
                                                        
                                                        

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

 
Page 3                                                     2308
                                     S.B. NO.           S.D. 2
                                                        
                                                        

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

 
Page 4                                                     2308
                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1           distribution as provided in section 237-  ."
 
 2      SECTION 3.  Statutory material to be repealed in bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 4.  This Act shall take effect on July 1, 2000.