REPORT TITLE:
Public Utilities, Tax


DESCRIPTION:
Authorizes each county to establish a gross receipts tax of not
more than 2 1/2% of gross receipts of any public utility.

 
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THE SENATE                              S.B. NO.           1360
TWENTIETH LEGISLATURE, 1999                                
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 46, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§46-      Gross receipts tax; public utilities.  (a)  Any
 
 5 other law to the contrary notwithstanding, each county may
 
 6 establish a gross receipts tax not to exceed two and one-half per
 
 7 cent of the gross receipts of any public utility, as defined in
 
 8 section 239-1, from:
 
 9      (1)  Furnishing electric current, light, or power to
 
10           customers;
 
11      (2)  The conveyance, transmission, delivery, or furnishing
 
12           of gas to customers; or
 
13      (3)  The conveyance, transmission, delivery, or furnishing
 
14           of cable television services, telecommunications
 
15           messages or the transmission of intelligence by
 
16           electricity by land, water, or air to customers within
 
17           the State or between points within the State;
 
18 during each calendar year.
 
19      In the case of public utilities under paragraph (3), the
 

 
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 1 gross receipts tax may be imposed by the county in which the
 
 2 transmission originated or terminated and is charged to a
 
 3 customer or account in that county by a public utility regulated
 
 4 by the public utilities commission or by a person using the
 
 5 instate transmission facilities of such public utility.  If the
 
 6 same conveyance, transmission, delivery, or furnishing of a
 
 7 public utility under paragraph (3) is subject to taxation by more
 
 8 than one county, then a tax credit may be claimed in such a
 
 9 manner that the public utility shall be required to pay only one
 
10 county the tax concerning the same conveyance, transmission,
 
11 delivery, or furnishing.
 
12      (b)  Any amount received in the form of a monthly surcharge
 
13 by a public utility acting on behalf of an affected public
 
14 utility under section 269-16.3 shall not be deemed gross receipts
 
15 for the acting public utility for the purposes of this section.
 
16 Amounts retained by the acting public utility for collection or
 
17 other costs shall not be included in this exemption.
 
18      (c)  All books, papers, records, and accounts of the public
 
19 utilities subject to this section shall at all reasonable times,
 
20 be open to inspection by the director of finance of each county
 
21 in which the public utility performs the functions set forth in
 
22 subsection (a)(1) to (3).  The director may appoint agents for
 
23 such purpose."
 

 
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 1      SECTION 2.  Section 46-47, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§46-47  [Franchise fees,] Gross receipt tax disposition of.
 
 4 All moneys received by any county from [any public utility
 
 5 corporation under the provisions of the franchise granted to the
 
 6 corporation] the gross receipts tax under this chapter shall be
 
 7 [kept in] deposited into the highway fund created by section
 
 8 249-18 and expended on the construction, maintenance,
 
 9 improvement, and repair of public roads and highways of the
 
10 county in which the same are received, including for the purposes
 
11 of this section, the installation, maintenance, and repair of
 
12 street lights and power, and other charges for street lighting
 
13 purposes as well as the replacement of old street lights, and
 
14 footpaths or sidewalks; provided that in the city and county of
 
15 Honolulu the city council may provide for the maintenance of the
 
16 traffic department, for other purposes and functions connected
 
17 with the prevention of automobile accidents and preservation of
 
18 safety upon the highways and streets in the city and county of
 
19 Honolulu, and for the establishment and maintenance, under the
 
20 direction of the police department, of one or more vehicle
 
21 testing stations, from the moneys."
 
22      SECTION 3.  Act 48, Session Laws of Hawaii 1903, as amended
 
23 by Act 23 and 224, Session Laws of Hawaii 1915, as amended by Act
 

 
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 1 134, Session Laws of Hawaii 1961, is amended by amending section
 
 2 10 of the franchise to read as follows:
 
 3      "Section 10.  Annual payments to City and County of
 
 4 Honolulu.  The [said] company shall, within one month after the
 
 5 expiration of each calendar year, file with the public utilities
 
 6 commission a statement showing the gross receipts from the sale
 
 7 of electric light and power furnished by the company on the
 
 8 Island of Oahu and shall at the same time pay to the treasurer of
 
 9 the City and County of Honolulu [two and one-half per centum of
 
10 the gross receipts of the company from all electric light or
 
11 power furnished to consumers on the Island of Oahu during the
 
12 preceding calendar year.] a gross receipts tax established by the
 
13 county."
 
14      SECTION 4.  Act 130, Session Laws of Hawaii 1963, is amended
 
15 by amending section 14 of the franchise to read as follows:
 
16      "Section 14.  Annual statement, payment to government.  The
 
17 corporation shall, within one month after the expiration of each
 
18 calendar year, file with the treasurer of the county of Hawaii, a
 
19 detailed statement showing all of its receipts and expenditures
 
20 during the preceding calendar year, and shall, at the same time,
 
21 pay to the treasurer of [said] the county of Hawaii, for and on
 
22 behalf of [said] the county, [two and one-half per centum of the
 
23 gross receipts of the corporation from all electric current or
 

 
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 1 power furnished to consumers on the island of Hawaii during the
 
 2 preceding year;] a gross receipts tax established by the county;
 
 3 and all its books, papers, records, and accounts shall at all
 
 4 reasonable times be open to inspection by the treasurer of [said]
 
 5 the county, and [his] the treasurer's respective agents appointed
 
 6 for such purposes."
 
 7      SECTION 5.  Act 165, Session Laws of Hawaii 1967, is amended
 
 8 by amending section 14 of the franchise to read as follows:
 
 9      "Section 14.  Annual statement, payment to government.  The
 
10 corporation shall, within one month after the expiration of each
 
11 calendar year, file with the treasurer of the county of Kauai, a
 
12 detailed statement showing all of its receipts and expenditures
 
13 during the preceding calendar year, and shall, at the same time,
 
14 pay to the treasurer of [said] the county of Kauai, for and on
 
15 behalf of [said] the county, [two and one-half per centum of the
 
16 gross receipts of the corporation from all electric current or
 
17 power furnished to consumers on the island of Kauai during the
 
18 preceding year;] a gross receipts tax established by the county;
 
19 and all its books, papers, records, and accounts shall at all
 
20 reasonable times be open to inspection by the treasurer of [said]
 
21 the county, and [his] the treasurer's respective agents appointed
 
22 for such purposes."
 
23      SECTION 6.  Act 262, Session Laws of Hawaii 1967, is amended
 

 
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 1 by amending section 6 of the franchise to read as follows:
 
 2      "Section 6.  Annual payments to counties.  The [said]
 
 3 corporation shall, within one month after the expiration of each
 
 4 calendar year, file with the public utilities commission a
 
 5 statement showing the gross receipts of the corporation from the
 
 6 sale of gas furnished through mains or conduits in public rights-
 
 7 of-way in each county under the terms of this Act, and shall at
 
 8 the same time pay to the treasurer of each county, [two and one-
 
 9 half per centum of the gross receipts of the corporation from the
 
10 sale of gas furnished through such mains or conduits in that
 
11 county under the terms of this Act during the preceding calendar
 
12 year.] a gross receipts tax established by each county."
 
13      SECTION 7.  Act 54, Session Laws of Hawaii 1988, is amended
 
14 by amending section 15 of the franchise to read as follows:
 
15      "Section 15.  Annual statement, payment to government.
 
16 Within one month after the expiration of each calendar year, the
 
17 corporation shall file with the treasurer of the county of Maui a
 
18 detailed statement, showing all of its receipts and expenditures
 
19 during the preceding calendar year, and, at that time, shall pay
 
20 to the treasurer of the county of Maui, for and on behalf of the
 
21 county, [two and one-half per cent of the gross receipts of the
 
22 corporation from all electric current or power furnished to
 
23 consumers on the island of Lanai during the preceding year;] a
 

 
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 1 gross receipts tax established by the county; and all its books,
 
 2 papers, records, and accounts shall be open to inspection at all
 
 3 reasonable times by the treasurer of the county and the
 
 4 treasurer's respective agents appointed for that purpose. The
 
 5 payment by the corporation to the treasurer of the county of Maui
 
 6 under this section shall be in lieu of any other payment that the
 
 7 corporation may be required to pay to the treasurer of the county
 
 8 of Maui based on gross receipts of the corporation from electric
 
 9 current or power furnished to consumers on the island of Lanai
 
10 under any other franchise held by the corporation."
 
11      SECTION 8.  Act 147, Session Laws of Hawaii 1989, is amended
 
12 by amending section 15 of the franchise to read as follows:
 
13      "Section 15.  Annual statement, payment of government.
 
14 Within one month after the expiration of each calendar year, the
 
15 corporation shall file with the treasurer of the county of Maui a
 
16 detailed statement, showing all of its receipts and expenditures
 
17 during the preceding calendar year, and, at that time, shall pay
 
18 to the treasurer of the county of Maui, for and on behalf of the
 
19 county, [two and one-half per cent of the gross receipts of the
 
20 corporation from all electric current or power furnished to
 
21 consumers on the island of Molokai during the preceding year;] a
 
22 gross receipts tax established by the county; and all its books,
 
23 papers, records, and accounts shall be open to inspection at all
 

 
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 1 reasonable times by the treasurer of the county and the
 
 2 treasurer's respective agents appointed for that purpose.  The
 
 3 payment by the corporation to the treasurer of the county of Maui
 
 4 under this section shall be in lieu of any other payment that the
 
 5 corporation may be required to pay to the treasurer of the county
 
 6 of Maui based on gross receipts of the corporation from electric
 
 7 current or power furnished to consumers on the island of Molokai
 
 8 under any other franchise held by the corporation."
 
 9      SECTION 9.  Act 12, Session Laws of Hawaii 1991, is amended
 
10 by amending section 15 of the franchise to read as follows:
 
11      "Section 15.  Annual statement, payment to government.
 
12 Within one month after the expiration of each calendar year, the
 
13 corporation shall file with the treasurer of the county of Maui a
 
14 detailed statement, showing all of its receipts and expenditures
 
15 during the preceding calendar year, and, at that time, shall pay
 
16 to the treasurer of the county of Maui, for and on behalf of the
 
17 county, [two and one-half per cent of the gross receipts of the
 
18 corporation from all electric current or power furnished to
 
19 consumers on the island of Maui during the preceding year;] a
 
20 gross receipts tax established by the county; and all its books,
 
21 papers, records, and accounts shall be open to inspection at all
 
22 reasonable times by the treasurer of the county and the
 
23 treasurer's respective agents appointed for that purpose. The
 

 
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 1 payment by the corporation to the treasurer of the county of Maui
 
 2 under this section shall be in lieu of any other payment that the
 
 3 corporation may be required to pay to the treasurer of the county
 
 4 of Maui based on gross receipts of the corporation from electric
 
 5 current or power furnished to consumers on the island of Maui
 
 6 under any other franchise held by the corporation."
 
 7      SECTION 10.  Chapter 240, Hawaii Revised Statutes, is
 
 8 repealed.
 
 9      SECTION 11.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 12.  This Act shall take effect upon its approval.
 
12 
 
13                              INTRODUCED BY:______________________
 

 
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