SB2324 SD1.DOC

SECTION 1. The legislature finds that taxes on gasoline and diesel fuels are currently one of the main means of funding the repair and maintenance of state and county roadways in the State. For example, the owner of a vehicle in the city and county of Honolulu that drives 12,500 miles per year at thirty miles per gallon of fuel will pay approximately $140 in combined state and county fuel taxes. On the other hand, owners of electric vehicles pay substantially less in taxes than owners of conventional gasoline and diesel vehicles because they do not need to purchase liquid fuel for their vehicles.

The legislature further finds that as technological advances improve the fuel economy of all motor vehicles, it will be necessary to establish a vehicle miles-traveled tax to replace the liquid fuel tax. In the interest of fairness, the legislature believes it is appropriate to create an electric vehicle user fee to offset the difference in taxes as an interim measure until a suitable mechanism for collecting a vehicle miles-traveled tax can be implemented.

The purpose of this Act is to establish an annual electric vehicle user fee.

SECTION 2. Chapter 249, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§249- Electric vehicle user fee. (a) All electric vehicles in the State shall be subject to a $60 annual user fee.

(b) The electric vehicle user fee shall be paid each year together with all other taxes and fees levied by this chapter on a staggered basis as established by each county pursuant to section 286-51 so that the electric vehicle user fee is due and payable at the same time and shall be collected with state and county fees.

(c) The electric vehicle user fee shall be deemed delinquent if not paid with the state registration fee and the county registration fee. The respective counties shall collect this fee and transfer one hundred per cent of the moneys collected under this section to the State to be deposited into the state highway fund established under section 248-8.

(d) For the purposes of this section, "electric vehicle" has the same meaning as in section 291-71."

SECTION 3. Section 437D-8.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, a lessor may visibly pass on to a lessee:

(1) The general excise tax attributable to the transaction;

(2) The vehicle license [~~and~~] fee, registration fee [~~and~~], weight taxes, and electric vehicle user fee, prorated at 1/365th of the annual vehicle license and registration fee [~~and~~], weight taxes, and electric vehicle user fee actually paid on the particular vehicle being rented for each full or partial twenty-four-hour rental day that the vehicle is rented; provided the total of all vehicle license and registration fees charged to all lessees shall not exceed the annual vehicle license and registration fee actually paid for the particular vehicle rented;

(3) The rental motor vehicle surcharge tax as provided in section 251-2 attributable to the transaction;

(4) The county surcharge on state tax under section 46‑16.8; provided that the lessor itemizes the tax for the lessee; and

(5) The rents or fees paid to the department of transportation under concession contracts negotiated pursuant to chapter 102, service permits granted pursuant to title 19, Hawaii Administrative Rules, or rental motor vehicle customer facility charges established pursuant to section 261-7; provided that:

(A) The rents or fees are limited to amounts that can be attributed to the proceeds of the particular transaction;

(B) The rents or fees shall not exceed the lessor's net payments to the department of transportation made under concession contract or service permit;

(C) The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts of the rents or fees paid to the department of transportation pursuant to the applicable concession contract or service permit:

(i) For all airport locations; and

(ii) For each airport location;

(D) The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts charged to lessees:

(i) For all airport locations;

(ii) For each airport location; and

(iii) For each lessee;

(E) The lessor includes in these reports the methodology used to determine the amount of fees charged to each lessee; and

(F) The lessor submits the above information to the department of transportation and the department of commerce and consumer affairs within three months of the end of the preceding annual accounting period or contract year as determined by the applicable concession agreement or service permit.

The respective departments, in their sole discretion, may extend the time to submit the statement required in this subsection. If the director determines that an examination of the lessor's information is inappropriate under this subsection and the lessor fails to correct the matter within ninety days, the director may conduct an examination and charge a lessor an examination fee based upon the cost per hour per examiner for evaluating, investigating, and verifying compliance with this subsection, as well as additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination, which shall relate solely to the requirements of this subsection, and which shall be billed by the departments as soon as feasible after the close of the examination. The cost per hour shall be $40 or as may be established by rules adopted by the director. The lessor shall pay the amounts billed within thirty days following the billing. All moneys collected by the director shall be credited to the compliance resolution fund."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2014.

THE SENATE	S.B. NO.	2324
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 1
STATE OF HAWAII