REPORT TITLE:



DESCRIPTION:


 
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                                            1553        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC SERVICE COMPANY TAX.



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

 1      SECTION 1.  The purpose of this Act is to transfer to the
 
 2 counties the portion of the public service company taxes
 
 3 collected from public utilities in excess of the four per cent
 
 4 rate.  According to Chapter 239, Hawaii Revised Statutes, the
 
 5 public service company tax is a means of taxing the real property
 
 6 and personal property of public utility companies, among other
 
 7 things.  Although real property taxes are the primary revenue
 
 8 source for counties, the public service company tax revenue
 
 9 remains with the state government.  The legislature finds that a
 
10 more equitable allocation of the public service company tax
 
11 should be implemented.
 
12      SECTION 2.  Section 239-10, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "Sec. 239-10  Disposition of revenues.  (a)  All taxes
 
15 collected under this chapter shall be state realizations[.];
 
16 except that, in accordance with subsection (b), a portion of the
 
17 taxes collected from public utilities pursuant to section
 
18 239-5(a) and (b) shall be county realizations.
 
19      (b)  Except as otherwise provided under this subsection, a
 

 
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 1 county shall be entitled to the portion of the public service
 
 2 company taxes:
 
 3      (1)  Collected from a public utility pursuant to section
 
 4           239-5(a) or (b);
 
 5      (2)  Representing the amount in excess of four per cent of
 
 6           the public utility's gross income from public utility
 
 7           business; and
 
 8      (3)  Generated from or apportioned to the public utility's
 
 9           business within the county.
 
10      The director of taxation shall determine the amount of taxes
 
11 to which each county is entitled.  The determination shall be
 
12 made for the taxes collected in each fiscal year.  The
 
13 comptroller shall distribute to each county its entitlement
 
14 within five months of the end of the applicable fiscal year."
 
15      SECTION 3.  This Act shall apply to public service company
 
16 taxes collected by the State in the fiscal year 2000-2001 and
 
17 each subsequent fiscal year.
 
18      SECTION 4.  Statutory material to be repealed is bracketed.
 
19 New statutory material is underscored.
 
20      SECTION 5.  This Act shall take effect on July 1, 1999.
 
21 
 
22                           INTRODUCED BY:_________________________
 

 
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