Report Title:
Exemption; General Excise Tax; Fuel Tax; Gasoline; Diesel
Description:
Eliminates the assessment and collection of the state general excise tax and state fuel tax on gasoline and diesel fuel used for motor vehicles.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2282 |
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TWENTY-FOURTH LEGISLATURE, 2008 |
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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:
SECTION 1. Section 243-4, Hawaii Revised Statutes, is amended to read as follows:
"§243-4 License taxes. (a) Every
distributor, in addition to any other taxes provided by law, shall pay a
license tax to the department of taxation for each gallon of liquid fuel
refined, manufactured, produced, or compounded by the distributor and sold or
used by the distributor in the [State] state or imported by the
distributor, or acquired by the distributor from persons who are not licensed
distributors, and sold or used by the distributor in the [State.] state.
Any person who sells or uses any liquid fuel, knowing that the distributor from
whom it was originally purchased has not paid and is not paying the tax
thereon, shall pay such tax as would have applied to such sale or use by the
distributor. The rates of tax imposed are as follows:
(1) For each gallon of diesel oil[,] not
used for motor vehicles, 2 cents;
(2) For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 2 cents; and
(3) For each gallon of naphtha sold for use in a
power-generating facility, 1 cent[;
(4) For each gallon of liquid fuel, other
than fuel mentioned in paragraphs (1), (2), and (3), and other than an
alternative fuel, sold or used in the city and county of Honolulu, or sold in
any county for ultimate use in the city and county of Honolulu, 17 cents state
tax, and in addition thereto an amount, to be known as the "city and
county of Honolulu fuel tax", as shall be levied pursuant to section
243-5;
(5) For each gallon of liquid fuel, other
than fuel mentioned in paragraphs (1), (2), and (3), and other than an
alternative fuel, sold or used in the county of Hawaii, or sold in any county
for ultimate use in the county of Hawaii, 17 cents state tax, and in addition
thereto an amount, to be known as the "county of Hawaii fuel tax", as
shall be levied pursuant to section 243-5;
(6) For each gallon of liquid fuel, other
than fuel mentioned in paragraphs (1), (2), and (3), and other than an
alternative fuel, sold or used in the county of Maui, or sold in any county for
ultimate use in the county of Maui, 17 cents state tax, and in addition thereto
an amount, to be known as the "county of Maui fuel tax", as shall be
levied pursuant to section 243-5; and
(7) For each gallon of liquid fuel, other
than fuel mentioned in paragraphs (1), (2), and (3), and other than an
alternative fuel, sold or used in the county of Kauai, or sold in any county
for ultimate use in the county of Kauai, 17 cents state tax, and in addition
thereto an amount, to be known as the "county of Kauai fuel tax", as shall
be levied pursuant to section 243-5].
If it is shown to the satisfaction of the department, based upon proper records and from any other evidence as the department may require, that liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), is used for agricultural equipment that does not operate upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by this section in excess of 1 cent per gallon. The department shall adopt rules to administer such refunds.
[(b) Every distributor of diesel oil, in
addition to the tax required by subsection (a), shall pay a license tax to the
department for each gallon of diesel oil sold or used by the distributor for
operating a motor vehicle or motor vehicles upon public highways of the State.
The rates of the additional tax imposed are as follows:
(1) For each gallon of diesel oil sold or
used in the city and county of Honolulu, or sold in any other county for
ultimate use in the city and county of Honolulu, 15 cents state tax, and in
addition thereto an amount, to be known as the "city and county of
Honolulu fuel tax", as shall be levied pursuant to section 243-5;
(2) For each gallon of diesel oil sold or
used in the county of Hawaii, or sold in any other county for ultimate use in
the county of Hawaii, 15 cents state tax, and in addition thereto an amount, to
be known as the "county of Hawaii fuel tax", as shall be levied
pursuant to section 243-5;
(3) For each gallon of diesel oil sold or
used in the county of Maui, or sold in any other county for ultimate use in the
county of Maui, 15 cents state tax, and in addition thereto an amount, to be
known as the "county of Maui fuel tax", as shall be levied pursuant
to section 243-5; and
(4) For each gallon of diesel oil sold or
used in the county of Kauai, or sold in any other county for ultimate use in
the county of Kauai, 15 cents state tax, and in addition thereto an amount, to
be known as the "county of Kauai fuel tax", as shall be levied
pursuant to section 243-5.
If any user of diesel oil furnishes a
certificate, in a form that the department shall prescribe, to the distributor
or if the distributor who uses diesel oil signs the certificate, certifying
that the diesel oil is for use in operating a motor vehicle or motor vehicles
in areas other than upon the public highways of the State, the tax as provided
in paragraphs (1) to (4) shall not be applicable. If a certificate is not or
cannot be furnished and the diesel oil is in fact for use for operating a motor
vehicle or motor vehicles in areas other than upon public highways of the
State, the user thereof may obtain a refund of all taxes thereon imposed by the
foregoing paragraphs. The department shall adopt rules to administer the
refunding of such taxes.
(c)] (b) The tax shall not be
collected in respect to any benzol, benzene, toluol, xylol, or alternative fuel
sold for use other than for operating internal combustion engines. With
respect to these products, other than alternative fuels, the department, by
rule, shall provide for the reporting and payment of the tax and for the
keeping of records in such a manner as to collect, for each gallon of each
product sold for use in internal combustion engines for the generation of
power, or so used, the [same tax or taxes as apply to each gallon of
diesel oil.] taxes required by this subsection. With respect to
alternative fuels, the only tax collected shall be that provided in paragraphs
(1), (2), and (3) of this subsection. This subsection shall not apply to
aviation fuel sold for use in or used for airplanes.
(1) Every distributor of any alternative fuel for operation of an internal combustion engine shall pay a license tax to the department of one-quarter of 1 cent for each gallon of alternative fuel sold or used by the distributor;
(2) Every distributor, in addition to the tax
required under paragraph (1) of this subsection, shall pay a license tax to the
department for each gallon of alternative fuel sold or used by the distributor
for operating a motor vehicle or motor vehicles upon the public highways of the
State [at a rate proportional to that of the rates applicable to diesel oil
in subsection (b)], rounded to the nearest one-tenth of a cent, as follows:
(A) Ethanol, [0.145 times the rate for
diesel;] 2.2 cents, and in addition thereto:
(i) For each gallon of ethanol sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;
(ii) For each gallon of ethanol sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;
(iii) For each gallon of ethanol sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and
(iv) For each gallon of ethanol sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5;
(B) Methanol,
[0.11 times the rate for diesel;] 1.6 cents, and in addition thereto:
(i) For each gallon of methanol sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;
(ii) For each gallon of methanol sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;
(iii) For each gallon of methanol sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and
(iv) For each gallon of methanol sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5;
(C) Biodiesel,
[0.25 times the rate for diesel;] 3.7 cents, and in addition thereto:
(i) For each gallon of biodiesel sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;
(ii) For each gallon of biodiesel sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;
(iii) For each gallon of biodiesel sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and
(iv) For each gallon of biodiesel sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5;
(D) Liquefied petroleum gas, [0.33 times
the rate for diesel;] 4.9 cents, and in addition thereto:
(i) For each gallon of liquefied petroleum gas sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;
(ii) For each gallon of liquefied petroleum gas sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;
(iii) For each gallon of liquefied petroleum gas sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and
(iv) For each gallon of liquefied petroleum gas sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5;
and
(E) For other alternative fuels, the rate
shall be based on the energy content of the fuels as compared to diesel fuel,
using a lower heating value of one hundred thirty thousand British thermal
units per gallon as a standard for diesel, so that the tax rate, on an energy
content basis, is equal to [one-quarter the rate for diesel fuel.] 3.75
cents.
The taxes so paid shall be paid into the
state treasury and deposited in special funds [or paid over in the same
manner as provided in subsection (b) in respect of the tax on diesel oil];
(3) If any user of alternative fuel furnishes to the distributor a certificate, in a form that the department shall prescribe or if the distributor who uses alternative fuel signs the certificate, certifying that the alternative fuel is for use in operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State, the tax as provided by paragraphs (1) and (2) of this subsection shall not be applicable; provided that no certificate shall be required if the alternative fuel is used for fuel and heating purposes in the home. If a certificate is not or cannot be furnished and the alternative fuel is in fact used for operating an internal combustion engine or operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by the foregoing paragraphs. The department shall adopt rules to administer the refunding of these taxes.
[(d)] (c) No tax shall be
collected in respect to any liquid fuel, including diesel oil and liquefied
petroleum gas, shown to the satisfaction of the department to have been sold
for use in and actually delivered to, or sold in, the county of Kalawao."
SECTION 2. Act 209, Session Laws of Hawaii 2007, is amended to read as follows:
1. By amending section 2 to read:
"SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Exemption of sale of alcohol fuels. (a) There shall be exempted from and excluded from the measure of the taxes imposed by this chapter all of the gross income or gross proceeds arising from the sale of alcohol fuels, as defined in subsection (b), for consumption or use by the purchaser and not for resale.
(b) For the purposes of this section, "alcohol fuels" means neat biomass-derived alcohol liquid fuel or a petroleum-derived fuel and alcohol liquid fuel mixture consisting of at least ten volume per cent denatured biomass-derived alcohol commercially usable as a fuel to power aircraft, seacraft, spacecraft, motor vehicles, or other motorized vehicles.
(c) A producer, wholesaler, or retailer of alcohol fuels shall pass any savings realized from this exemption on to the end consumer. A producer, wholesaler, or retailer of alcohol fuels shall not increase its profit margin on the sale of the alcohol fuel as a result of this exemption. Any producer or wholesaler who violates this subsection shall be subject to a fine of $100,000. Notwithstanding any law to the contrary, a violation of this subsection shall be deemed an unfair or deceptive act or practice in violation of and enforceable under chapter 480.
[(d) The director of taxation shall adopt rules pursuant
to chapter 91 necessary to administer this section.]"
2. By amending section 6 to read:
"SECTION 6. This Act shall take effect on July 1,
2007[; provided that section 2 of this Act shall be repealed on June 30,
2009].""
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2008; provided that notwithstanding the repeal and reenactment of section 243-4, Hawaii Revised Statutes, pursuant to section 5 of Act 103, Session Laws of Hawaii 2007, the amendments to section 243-4, Hawaii Revised Statutes, by this Act shall remain in effect.
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