Report Title:
Fuel Tax; Power Generation
Description:
Exempts power-generating facilities and electric cooperatives from the license tax on liquid fuel. (SD1)
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THE SENATE |
S.B. NO. |
731 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO FUEL TAX.
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 [shall], 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 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. 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]
the tax as would have applied to [such] the sale or use by
the distributor. The rates of tax hereby imposed are as follows:
(1) For each gallon of diesel oil, 1 cent;
(2) For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 1 cent;
(3) For each gallon of liquid fuel other than fuel
mentioned in paragraphs (1) and (2), 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, 16 cents state tax, and in addition [thereto
such] to that amount, to be known as the "city and county of
Honolulu fuel tax", as shall be levied pursuant to section 243-5;
(4) For each gallon of liquid fuel other than fuel
mentioned in paragraphs (1) and (2), 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, 16 cents state tax, and in addition [thereto such] to
that amount, to be known as the "county of Hawaii 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) and (2), 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, 16 cents state tax, and in addition [thereto such] to
that amount, to be known as the "county of Maui fuel tax", as
shall be levied pursuant to section 243-5; and
(6) For each gallon of liquid fuel other than fuel
mentioned in paragraphs (1) and (2), 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, 16 cents state tax, and in addition [thereto such] to
that 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 [such] any other
evidence as the department may require, that liquid fuel other than fuel
mentioned in paragraphs (1) and (2) 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] these
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 [such] 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 hereby 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
such] to that 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 such] to that
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 such] to that 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 such] to that
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 [such] a form as the department shall prescribe,
to the distributor, or the distributor who uses diesel oil signs [such] 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. [In
the event] 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] these
taxes.
(c) 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 respect thereto, in such a manner as to collect, for each
gallon of [such] 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. 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 one cent for each gallon of [such]
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;
(B) Methanol, 0.11 times the rate for diesel;
(C) Biodiesel, 0.25 times the rate for diesel;
(D) Liquefied petroleum gas, 0.33 times the rate for diesel; 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.
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 [such] a form as the department
shall prescribe, or the distributor who uses alternative fuel signs [such]
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. [In the event] 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 [such] these paragraphs.
The department shall adopt rules to administer the refunding of [such] the
taxes imposed.
(d) 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.
(e) 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 a power-generating facility. For the purposes of this subsection, "power-generating facility" means any electricity-generating facility or electric cooperative that uses or purchases any liquid fuel, including diesel oil and liquefied petroleum gas, or a combination thereof, for the purpose of generating electricity."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2007.