REPORT TITLE: 
GET reduction; petroleum
DESCRIPTION:
Reduces the general excise tax rate on the production, sale and
distribution of petroleum products from the current four percent
to one-half of one-percent.

 
HB HMIA 99-283
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1307        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT

RELATING TO A GENERAL EXCISE TAX REDUCTION ON PETROLEUM PRODUCTS.



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


 1      SECTION 1.  The legislature finds that among the many
 
 2 factors contributing to the high cost of living in Hawaii is the
 
 3 high cost of fuel, particularly gasoline.  The high cost of
 
 4 gasoline is, in part, caused by the excessive and regressive
 
 5 effects of State taxes.  The petroleum currently pays a general
 
 6 excise tax of four percent on virtually all aspects of the
 
 7 production, sale, and distribution of petroleum products.  This
 
 8 tax is passed on to the consumer in the form of higher gas
 
 9 prices.
 
10      The purpose of this Act is to reduce the general excise tax
 
11 on fuel from the current four percent to one-half of one percent.
 
12 This tax reduction should not only result in lower gas prices,
 
13 but in lower electric and other energy costs as well.
 
14      SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended
 
15 by adding a new section to be appropriately designated and to
 
16 read as follows:
 
17      "237-     Tax reduction on gasoline.  There is hereby
 
18 levied, and shall be assessed and collected annually, a privilege
 
19 tax against persons, or entities engaging or continuing within
 

 
HB HMIA 99-283
Page 2                                         1307        
                                     H.B. NO.           
                                                        
                                                        

 
 1 the State in the production, sale, or distribution of gasoline or
 
 2 motor vehicle fuel as a manufacturer, jobber, petroleum
 
 3 distributor, gasoline dealer, or retail service station owner or
 
 4 operator equal to one-half of one percent of the gross proceeds
 
 5 of sale or gross income received or derived from such activities.
 
 6      As used in this section:
 
 7           "Gasoline" includes gasoline, benzol, benzine, naphtha,
 
 8           and any other liquid prepared, advertised, offered for 
 
 9           sale, sold for use as, or used for, the generation of
 
10           power for the propulsion of motor vehicles, including
 
11           any product obtained by blending together any one or
 
12           more petroleum products with or without other products,
 
13           if the resultant product is capable of the same use.
 
14           "Gasoline dealer" means any person engaged in the
 
15           retail sale of petroleum products in the United States
 
16           under a franchise agreement entered into with a
 
17           petroleum distributor.
 
18           "Jobber" means every wholesaler of petroleum products.
 
19           "Manufacturer" means every producer or refiner of
 
20           petroleum products on January 1, 1992, or any
 
21           subsidiary of that producer or refiner.
 
22           "Motor vehicle fuel" means gasoline, diesel fuel,
 
23           alcohol, and any mixture of those fuels suitable for
 

 
HB HMIA 99-283
Page 3                                         1307        
                                     H.B. NO.           
                                                        
                                                        

 
 1           use in vehicles registered under chapter 286.
 
 2           "Petroleum distributor" means any person engaged in the
 
 3           sale, consignment, or distribution of petroleum
 
 4           products to retail outlets that it owns, leases, or
 
 5           otherwise controls.
 
 6           "Retail service station" means a place of business
 
 7           where motor vehicle fuel is sold and delivered into the
 
 8           tanks of motor vehicles."
 
 9      SECTION 3.  New statutory material is underscored.
 
10      SECTION 4.  This Act shall take effect on July 1, 1999.
 
11 
 
12 
 
13                         INTRODUCED BY:___________________________
 
14 
 
15                                       ___________________________
 
16 
 
17                                       ___________________________
 
18 
 
19                                       ___________________________
 
20 
 
21                                       ___________________________
 
22 
 
23                                       ___________________________
 

 
HB HMIA 99-283
Page 4                                         1307        
                                     H.B. NO.           
                                                        
                                                        

 
 1 
 
 2                                       ___________________________
 
 3 
 
 4                                       ___________________________
 
 5 
 
 6                                       ___________________________
 
 7 
 
 8                                       ___________________________
 
 9 
 
10                                       ___________________________
 
11 
 
12                                       ___________________________
 
13 
 

 
HB HMIA 99-283