REPORT TITLE:
Taxation; GET; TAT


DESCRIPTION:
Distributes state funds to the counties from the GET instead of
the TAT.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2659
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION.



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

 1      SECTION 1.  The purpose of this Act is to accomplish the
 
 2 following:
 
 3      (1)  Provide the counties with a share of the general excise
 
 4           and use tax revenues; and
 
 5      (2)  Terminate the transfer of a share of the transient
 
 6           accommodations tax revenues to the counties.
 
 7      SECTION 2.  Section 237-31, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§237-31  Remittances.  All remittances of taxes imposed by
 
10 this chapter shall be made by money, bank draft, check, cashier's
 
11 check, money order, or certificate of deposit to the office of
 
12 the department of taxation to which the return was transmitted.
 
13 The department shall issue its receipts therefor to the taxpayer
 
14 and shall pay the moneys into the state treasury [as a state
 
15 realization,] to be kept [and], accounted for, and distributed as
 
16 provided by law; provided that:
 
17      (1)  The sum from all general excise tax revenues [realized
 
18           by the State] that represents the difference between
 
19           $45,000,000 and the proceeds from the sale of any
 

 
Page 2                                                     2659
                                     H.B. NO.           
                                                        
                                                        

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

 
Page 3                                                     2659
                                     H.B. NO.           
                                                        
                                                        

 
 1           fiscal year after the application of paragraphs (1),
 
 2           (2), and (3):
 
 3           (A)     per cent shall be distributed to the county of
 
 4                Kauai;
 
 5           (B)     per cent shall be distributed to the county of
 
 6                Hawaii;
 
 7           (C)     per cent shall be distributed to the city and
 
 8                county of Honolulu; and
 
 9           (D)     per cent shall be distributed to the county of
 
10                Maui.
 
11           The state director of finance shall make the
 
12           appropriate distribution to each county director of
 
13           finance on a quarterly basis.  The distribution shall
 
14           be made within sixty days of the end of each fiscal
 
15           quarter.
 
16      The general excise tax revenues remaining after the
 
17 application of paragraphs (1) through (4) shall be state
 
18 realizations and deposited in the state treasury to the credit of
 
19 the general fund."
 
20      SECTION 3.  Section 237D-6.5, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§237D-6.5  Remittances; distribution [to counties].  (a)
 
23 All remittances of taxes imposed under this chapter shall be made
 

 
Page 4                                                     2659
                                     H.B. NO.           
                                                        
                                                        

 
 1 by cash, bank drafts, cashier's check, money order, or
 
 2 certificate of deposit to the office of the taxation district to
 
 3 which the return was transmitted.
 
 4      (b)  Beginning on January 1, 1999[,] revenues collected
 
 5 under this chapter shall be distributed as follows:
 
 6      (1)  17.3 per cent of the revenues collected under this
 
 7           chapter shall be deposited into the convention center
 
 8           capital and operations special fund established under
 
 9           section 206X-10.5;
 
10      (2)  37.9 per cent of the revenues collected under this
 
11           chapter shall be deposited into the tourism special
 
12           fund established under section 201B-11;
 
13      (3)  [44.8 per cent of the revenues collected under this
 
14           chapter shall be transferred as follows:  Kauai county
 
15           shall receive 14.5 per cent, Hawaii county shall
 
16           receive 18.6 per cent, city and county of Honolulu
 
17           shall receive 44.1 per cent, and Maui county shall
 
18           receive 22.8 per cent.]  The remainder shall be
 
19           deposited into the general fund.
 
20      All transient accommodations taxes shall be paid into the
 
21 state treasury each month within ten days after collection, and
 
22 shall be kept by the state director of finance in special
 
23 accounts for distribution as provided in this subsection.
 

 
Page 5                                                     2659
                                     H.B. NO.           
                                                        
                                                        

 
 1      [(c)  On or before January or July 1 of each year or after
 
 2 the disposition of any tax appeal with respect to an assessment
 
 3 for periods after June 30, 1990, the state director of finance
 
 4 shall compute and pay the amount due as provided in subsection
 
 5 (b) to the director of finance of each county to become a general
 
 6 realization of the county expendable as such, except as otherwise
 
 7 provided by law.]"
 
 8      SECTION 4.  Section 238-14, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§238-14  Taxes [state realizations.]; distribution.  [All]
 
11 The taxes collected under this chapter in a fiscal year shall be
 
12 [state realizations.] paid into the state treasury and
 
13 distributed as follows:
 
14      (1)     per cent shall be retained by the State as state
 
15           realizations and deposited in the state treasury to the
 
16           credit of the general fund;
 
17      (2)     per cent shall be distributed to the county of
 
18           Kauai;
 
19      (3)     per cent shall be distributed to the county of
 
20           Hawaii;
 
21      (4)     per cent shall be distributed to the city and county
 
22           of Honolulu; and
 
23      (5)     per cent shall be distributed to the county of Maui.
 

 
Page 6                                                     2659
                                     H.B. NO.           
                                                        
                                                        

 
 1      The state director of finance shall make the appropriate
 
 2 distribution to each county director of finance on a quarterly
 
 3 basis.  The distribution shall be made within sixty days of the
 
 4 end of each fiscal quarter."
 
 5      SECTION 5.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 6.  This Act shall take effect on July 1, 2000.
 
 8 
 
 9                       INTRODUCED BY:  ___________________________