THE SENATE

S.B. NO.

1183

TWENTY-NINTH LEGISLATURE, 2017

S.D. 2

STATE OF HAWAII

H.D. 2

 

C.D. 2

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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

 

     SECTION 1.  Section 46-16.8, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  Each county that has established a surcharge on state tax prior to [[]July 1, 2015,[]] under authority of subsection (a) may extend the surcharge [from January 1, 2023,] until December 31, [2027,] 2037, at the same rates.  A county electing to extend this surcharge shall do so by ordinance; provided that:

     (1)  No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance; and

     (2)  The ordinance shall be adopted prior to [July] January 1, [2016, but no earlier than July 1, 2015.] 2018.

     A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted an ordinance extending the surcharge on state tax.  [Beginning on January 1, 2023, the] The director of taxation shall levy, assess, collect, and otherwise administer the extended surcharge on state tax.

     (c)  Each county that has not established a surcharge on state tax prior to [[]July 1, 2015,[]] may establish the surcharge at the rates enumerated in sections 237-8.6 and 238-2.6.  A county electing to establish this surcharge shall do so by ordinance; provided that:

     (1)  No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance;

     (2)  The ordinance shall be adopted prior to [July] January 1, [2016,] 2018 [but no earlier than July 1, 2015]; and

     (3)  No county surcharge on state tax that may be authorized under this subsection shall be levied prior to January 1, [2018,] 2019, or after December 31, [2027.] 2037.

     A county electing to exercise the authority granted under this subsection shall notify the director of taxation within ten days after the county has adopted a surcharge on state tax ordinance.  Beginning on January 1, [2018,] 2019, the director of taxation shall levy, assess, collect, and otherwise administer the county surcharge on state tax."

     SECTION 2.  Section 237-8.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Each county surcharge on state tax that may be adopted or extended pursuant to section 46-16.8 shall be levied beginning in [the] a taxable year after the adoption of the relevant county ordinance; provided that no surcharge on state tax may be levied:

     (1)  Prior to:

         (A)  January 1, 2007, if the county surcharge on state tax was established by an ordinance adopted prior to December 31, 2005; or

         (B)  January 1, [2018,] 2019, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but prior to [July 1, 2016;] January 1, 2018; and

     (2)  After December 31, [2027.] 2037."

     SECTION 3.  Section 238-2.6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Each county surcharge on state tax that may be adopted or extended shall be levied beginning in [the] a taxable year after the adoption of the relevant county ordinance; provided that no surcharge on state tax may be levied:

     (1)  Prior to:

         (A)  January 1, 2007, if the county surcharge on state tax was established by an ordinance adopted prior to December 31, 2005; or

         (B)  January 1, [2018,] 2019, if the county surcharge on state tax was established by the adoption of an ordinance after June 30, 2015, but prior to [July 1, 2016;] January 1, 2018; and

     (2)  After December 31, [2027.] 2037."

     SECTION 4.  Section 248-2.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  If adopted by county ordinance, all county surcharges on state tax collected by the director of taxation shall be paid into the state treasury quarterly, within ten working days after collection, and shall be placed by the director of finance in special accounts.  Out of the revenues generated by county surcharges on state tax paid into each respective state treasury special account, the director of finance shall deduct [ten] one per cent of the gross proceeds of a respective county's surcharge on state tax to reimburse the State for the costs of assessment, collection, [and] disposition, and oversight of the county surcharge on state tax incurred by the State.  Amounts retained shall be general fund realizations of the State."

     SECTION 5.  Act 247, Session Laws of Hawaii 2005, as amended by Act 240, Session Laws of Hawaii 2015, is amended by amending section 9 to read as follows:

     "SECTION 9.  This Act shall take effect upon its approval; provided that:

     (1)  If none of the counties of the State adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, this Act shall be repealed and section 437D-8.4, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act;

     (2)  If any county does not adopt an ordinance to levy a county surcharge on state tax by December 31, 2005, it shall be prohibited from adopting such an ordinance pursuant to this Act, unless otherwise authorized by the legislature through a separate legislative act; and

     (3)  If an ordinance to levy a county surcharge on state tax is adopted by December 31, 2005:

         (A)  The ordinance shall be repealed on December 31, 2022; provided that the repeal of the ordinance shall not affect the validity or effect of an ordinance to extend a surcharge on state tax adopted pursuant to [Act 240, Session Laws of Hawaii 2015;] an act of the legislature;

         (B)  This Act shall be repealed on December 31, [2027;] 2037; and

         (C)  Section 437D-8.4, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act; provided that the amendments made to section 437D-8.4, Hawaii Revised Statutes, by Act 226, Session Laws of Hawaii 2008, as amended by Act 11, Session Laws of Hawaii 2009, and Act 110, Session Laws of Hawaii 2014, shall not be repealed."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

Report Title:

County Surcharge on State Tax

 

Description:

Authorizes counties that have established a surcharge on state tax prior to 7/1/2015 to extend the surcharge to 12/31/2037.  Authorizes counties that have not established a surcharge to establish a surcharge on state tax prior to 1/1/2018.  Decreases from ten per cent to one per cent the surcharge gross proceeds retained by the State.  Requires a county's share of the county surcharge on state tax to be paid to the county on a monthly basis. (CD2)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.