REPORT TITLE:
Tax


DESCRIPTION:
Authorizes the counties to impose a tax on motor vehicles based
on the value of the vehicle.  (HB1055 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1055
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO VEHICLE TAXES.



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

 1      SECTION 1.  Chapter 249, Hawaii Revised Statutes is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§249-    County vehicle ad valorem tax.  (a)
 
 5 Notwithstanding any law to the contrary, each county may impose,
 
 6 levy, assess, collect, and otherwise administer a tax to be known
 
 7 as the county vehicle ad valorem tax on all vehicles located in
 
 8 the county.  The tax shall be assessed at the rate of no more
 
 9 than one per cent of the value of the vehicle as established in
 
10 the Kelly Blue Book or other nationally accepted vehicle price
 
11 guide; provided that for vehicles valued at $50,000 or less the
 
12 tax rate shall be no more than one-half of one per cent of the
 
13 value of the vehicle as established in the Kelly Blue Book or
 
14 other nationally accepted vehicle price guide.
 
15      (b)  The county vehicle weight tax, the state vehicle
 
16 registration fee, and the state vehicle weight tax imposed by
 
17 this chapter shall continue to be imposed, levied, assessed,
 
18 collected, and otherwise administered as provided in this
 
19 chapter.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (c)  The provisions of this chapter relating to the
 
 2 exemptions from the county vehicle weight tax currently specified
 
 3 in this chapter shall be applied to the extent applicable.
 
 4      (d)  The following vehicles shall be exempt from the county
 
 5 vehicle ad valorem tax:
 
 6      (1)  Ambulances, limousines, rental or U-drive motor
 
 7           vehicles, buses, taxi cabs, and vehicles having a gross
 
 8           vehicle weight rating of more than twenty-six thousand
 
 9           and one pounds; and
 
10      (2)  Vehicles that are more than ten years old.
 
11      (e)  The tax shall become due and payable on January 1 and
 
12 shall be paid before April 1 in each year, together with all
 
13 other taxes and fees levied by this chapter; provided that should
 
14 any county elect to renew motor vehicle registrations on a
 
15 staggered basis as authorized by section 286-51, the county
 
16 vehicle ad valorem tax shall likewise be staggered so that this
 
17 tax is collected with the county vehicle weight tax.  The county
 
18 director of finance shall not register a vehicle without payment
 
19 of the tax imposed under this section.
 
20      (f)  The director of finance of each county shall retain the
 
21 revenues collected in that county pursuant to this section.
 
22      (g)  Each county may adopt ordinances as may be necessary to
 
23 implement this section."
 
24      SECTION 2.  New statutory material is underscored.
 
25      SECTION 3.  This Act shall take effect upon its approval.