1046
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE TAXATION OF USED MOTOR VEHICLES.



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

 1      SECTION 1.  The Hawaii Revised Statutes is amended by adding
 
 2 a new chapter to be appropriately designated and to read as
 
 3 follows:
 
 4                             "CHAPTER
 
 5                      USED MOTOR VEHICLE TAX
 
 6      "  -1  Definitions.  Whenever used in this chapter:
 
 7      "Dealer", "motor vehicle", and "used motor vehicle" mean the
 
 8 same as those terms are defined in section 437-1.1.
 
 9      "Purchaser" means a person acquiring any right, title, or
 
10 interest in a used motor vehicle for a consideration.
 
11      "Unlicensed seller" means any seller who, with respect to
 
12 the sale or transfer of a used motor vehicle is not subject to
 
13 the tax imposed by chapter 237, whether or not the seller holds a
 
14 license under chapter 237.
 
15         -2  Imposition of tax.  There is hereby imposed and
 
16 shall be levied, collected, and paid, a tax as hereinafter
 
17 provided, on each sale or transfer of a used motor vehicle
 
18 purchased from an unlicensed seller.
 
19         -3  Basis and rate of tax.  The tax imposed by section
 

 
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 1    -1 shall be at the rate of four per cent on the transfer value
 
 2 of the used motor vehicle, as evidenced by the value of the used
 
 3 motor vehicle as established in the Kelley Blue Book or other
 
 4 nationally accepted used motor vehicle price guide.
 
 5         -4  Payment and liability of the tax.(a)  The tax
 
 6 imposed by this chapter shall be paid by the purchaser of the
 
 7 used motor vehicle.
 
 8      (b)  The purchaser shall remit the amount of the tax to the
 
 9 county director of finance on forms prescribed by the director of
 
10 taxation at the time the used motor vehicle is registered with
 
11 the county director of finance as required by section 286-41, as
 
12 a condition precedent to the registration of the used motor
 
13 vehicle.
 
14         -5  Collection of the tax.(a)  The tax imposed by this
 
15 chapter shall be computed and collected by the director of
 
16 finance of the county at the time the used motor vehicle is
 
17 registered.  The county director of finance shall not register a
 
18 used motor vehicle without payment of the tax imposed under this
 
19 chapter.
 
20      (b)  Each county director of finance shall maintain and use
 
21 the current Kelley Blue Book or other nationally accepted used
 
22 motor vehicle price guide to determine the value of the used
 
23 motor vehicle.
 

 
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 1         -6  Exemptions.(a)  The tax imposed by section    -1
 
 2 shall not apply to a used motor vehicle that is:
 
 3      (1)  Purchased or leased from a licensed motor vehicle
 
 4           dealer;
 
 5      (2)  Transferred by inheritance;
 
 6      (3)  Transferred due to a change of name;
 
 7      (4)  Transferred by repossession of the used motor vehicle
 
 8           in default of a debt;
 
 9      (5)  Transferred by the release of a mortgage or lien, the
 
10           payment in full of an installment loan, or the
 
11           termination of a financing agreement; or
 
12      (6)  Transferred to or purchased by the United States, its
 
13           governmental or political subdivisions, agencies, or
 
14           instrumentalities, or the State, its political
 
15           subdivisions, agencies, or instrumentalities.
 
16      (b)  To claim an exemption from the tax imposed by this
 
17 chapter, the purchaser shall furnish, on a form prescribed by the
 
18 director of taxation, a written declaration claiming an exemption
 
19 from the tax under subsection (a).  The form prescribed by the
 
20 director of taxation on which the purchaser claims the exemption
 
21 shall be submitted with the required forms upon registration of
 
22 the motor vehicle with the county director of finance.
 
23      (c)  If an exemption from the tax imposed by this chapter is
 

 
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 1 claimed on the basis that the used motor vehicle was purchased or
 
 2 leased from a licensed motor vehicle dealer, the dealer shall
 
 3 provide the purchaser with its general excise tax license number
 
 4 for purposes of the declaration required by subsection (b).
 
 5         -7  Appeals.  Any person aggrieved by any assesment of
 
 6 the tax imposed by this chapter may appeal from the assesssment
 
 7 in the manner and within the time and in all other respects as
 
 8 provided in the case of income tax appeals by section 235-114;
 
 9 provided the tax so assessed shall have been paid.
 
10         -8  Disposition of taxes.  By the fifteenth day of the
 
11 month following the month in which taxes under this chapter are
 
12 collected, the director of finance of each county shall transmit
 
13 fifty per cent of the taxes collected to the state director of
 
14 finance for deposit into the general fund and retain the
 
15 remaining fifty per cent for each county.
 
16         -9  Penalty for false declaration.  Any person who
 
17 knowingly makes a false or fraudulent declaration to defraud the
 
18 State or evade the payment of tax or any part thereof, imposed
 
19 under this chapter, or who in any manner intentionally deceives
 
20 or attempts to deceive the county director of finance in relation
 
21 to any such tax, shall be subject to a fine of not less than $500
 
22 nor more than $1,000, or by imprisonment for not more than one
 
23 year, or both.
 

 
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 1         -10  Refunds.  The director of finance for each county
 
 2 may order the refund in whole or in part of the tax imposed by
 
 3 this chapter which has been erroneously or unjustly paid.
 
 4         -11  Disclosure of tax information, penalty.(a) Except
 
 5 as provided by law, it shall be unlawful for any officer or
 
 6 employee of the State or county to make known intentionally
 
 7 information imparted by the forms required to be filed under this
 
 8 chapter or to wilfully permit any copy thereof to be seen or
 
 9 examined by any person other than the taxpayer, the taxpayer's
 
10 authorized representative, or any person duly authorized by the
 
11 State or county in connection with their official duties.
 
12      (b)  Any offense in violation of subsection (a) shall be
 
13 punished by a fine not exceeding $500 or by imprisonment not
 
14 exceeding one year, or both.
 
15         -12  Enforcement and administration.(a)  The director
 
16 of taxation shall administer and enforce the taxes imposed by
 
17 this chapter.  The director may prescribe and enforce rules and
 
18 regulations for the enforcement and administration of this
 
19 chapter, subject to chapter 91.
 
20      (b)  At any time after the making of a sale or transfer of a
 
21 used motor vehicle subject to the tax imposed by this chapter,
 
22 the director may investigate and ascertain whether the tax in the
 
23 proper amount was paid and may invoke all the statutory powers
 

 
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 1 vested in the director, including but not limited to section 231-
 
 2 7.  In execution of these powers, the director of taxation may
 
 3 call upon the county director of finance for assistance in the
 
 4 investigation of any violation of this chapter.
 
 5         -13  Chapter 235 and 237 applicable.  All of the
 
 6 provisions of chapter 235 and chapter 237 not inconsistent with
 
 7 this chapter and which may appropriately be applied to the taxes,
 
 8 persons, circumstances, and situations involved in this chapter,
 
 9 including provisions granting administrative powers to the
 
10 department of taxation, and provisions for the assessment, levy,
 
11 and collection of taxes, shall be applicable to the taxes imposed
 
12 by this chapter."
 
13      SECTION 2.  This Act shall take effect upon approval; and
 
14 shall apply to the sale or transfer of used motor vehicles
 
15 occurring after December 31, 1999.
 
16 
 
17                           INTRODUCED BY:  _______________________
 

 
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