Report Title:

County Excise Tax Exemption

 

Description:

Exempts counties from excise tax payments; allocates a proportionate percentage of public services company tax to each county; allows counties to assess vehicle ad valorem tax; requires court to reimburse counties for overtime pay to police officer witnesses in court; and allocates a proportionate percentage of traffic fines to each county.

 

 

THE SENATE

S.B. NO.

234

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO COUNTIES.

 

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

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-   Exemption for amounts received from counties. Amounts received by a taxpayer from a county shall be exempt from the tax imposed under this chapter."

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

"§249-   County vehicle ad valorem tax. In addition to the tax under section 249-2 and the fee under section 249-31, each county may impose a tax based on the fair market value of a vehicle located in the county. The tax shall be established by county ordinance; provided that sections 249-4, 249-6, and 249-33 shall apply."

SECTION 3. Chapter 607, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§607-   Reimbursement to counties for overtime of police witnesses. In addition to the witness fees under section 607-12, the court shall reimburse a county for the amount of overtime compensation paid by the county to a police officer for time spent testifying under subpoena in a trial or hearing in court."

SECTION 4. Section 239-10, Hawaii Revised Statutes, is amended to read as follows:

"§239-10 Disposition of revenues. (a) All taxes collected under this chapter shall be state realizations[.]; provided that after June 30, 2001, the amount of taxes collected under section 239-5(a) from levy and assessment after June 30, 2001, in excess of four per cent of a public service company's gross income shall be kept by the state director of finance in special accounts in the state treasury. Out of these special accounts, the state director of finance in carrying out this section shall deduct any cost incurred by the State in collecting the tax under this chapter or in maintaining the special accounts and shall then pay the remaining balance to each county as provided in this section.

The payments made by the state director of finance to a county shall be made as soon as possible after the taxes collected under this chapter have been paid into the special accounts.

(b) The director of taxation shall establish by August 1 of each year that portion of taxes collected during the state fiscal year under section 239-5(a) to be paid into the special accounts, and the county, except for the county of Kalawao, to which the taxes should be distributed. The amount of taxes in the special accounts to be paid over to each county shall be based upon the proportional contribution of actual tax receipts generated within each county, taking into account a proportionate share of refunds to taxpayers and contingent liabilities, such as tax appeals.

(c) No county shall have the right to appeal any assessment of the public service company tax on a public utility subject to section 239-5(a), nor shall any county have access to any tax returns or tax return information submitted to the department of taxation under this chapter.

(d) No county levying a real property tax on any person subject to taxation under section 239-5(a) shall receive any tax moneys under this section. All taxes kept in the county's special account and designated as payable to the county under this section shall be paid by the state director of finance to the state general fund upon the date the county first levies the real property tax and thereafter."

SECTION 5. Section 291C-171, Hawaii Revised Statutes, is amended to read as follows:

"§291C-171 Disposition of fines and forfeitures. (a) All fines and forfeitures collected upon conviction or upon the forfeiture of bail of any person charged with a violation of any section or provision of the state traffic laws and all assessments collected relating to the commission of traffic infractions shall be paid to the director of finance of the State[.] who shall transfer       per cent of all fines, forfeitures, and assessments generated within a county to that county, excluding monetary penalties resulting from offenses under sections 291-4, 291-4.3, and 291-4.4. No later than forty-five days after the close of each calendar quarter, the director of finance for the State shall deposit into the general fund of each county the fines, forfeitures, and assessments collected by the district courts in that county in the percentage prescribed in this section.

(b) In addition to any monetary assessment imposed for a traffic infraction, the court may impose penalties on all outstanding traffic citations and judgments. The penalties shall be established pursuant to rules approved by the supreme court; provided that the amounts of the penalties shall be based upon a graduated scale that increases in proportion to the length of the delinquency. Any interest penalty imposed as provided in this section may be waived by the court for good cause. All penalties collected for such outstanding citations and judgments shall be paid to the director of finance of the State[.] and distributed after collection as provided in subsection (a)."

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

SECTION 7. This Act shall take effect on July 1, 2001.

INTRODUCED BY:

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