REPORT TITLE:
Public Util. Franchise Tax


DESCRIPTION:
Requires telephone, telecommunications and cable companies to pay
public utilities franchise tax of 2.5% of gross revenues  to
counties.

 
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THE SENATE                              S.B. NO.           1362
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO TAXATION.
 


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

 1      SECTION 1.  Section 240-1, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "240-1 Electric light and power companies[,]; telephone,
 
 4 telecommunication and cable television services; tax on.  Every
 
 5 person operating in the State an electric light or power business
 
 6 as a public utility, or telephone, telecommunication, or cable
 
 7 television business whose franchise does not provide for the
 
 8 payment to the county in which the public utility operates of a
 
 9 tax, or a tax of less than two and one-half per cent, based upon
 
10 the gross receipts of such person from all electric light or
 
11 power, or telephone, telecommunication, or cable television
 
12 services furnished to consumers during each calendar year, shall
 
13 file with the director of finance of the county in which the
 
14 public utility operates, within one month after the expiration of
 
15 each calendar year, a detailed statement showing all gross
 
16 receipts from all electric light or power, or telephone,
 
17 telecommunication, or cable television services furnished to
 
18 consumers during the preceding calendar year.  Such person shall,
 
19 at the same time pay to the director of finance, for and on
 

 
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                                     S.B. NO.           1362
                                                        
                                                        

 
 1 behalf of such county, in addition to any and all other payments
 
 2 required to be made by law, two and one-half per cent of the
 
 3 gross receipts; or, if such person's franchise provides for a tax
 
 4 of less than two and one-half per cent of the gross proceeds, the
 
 5 difference between the tax required under such franchise and two
 
 6 and one-half per cent of the gross receipts, of such person from
 
 7 all electric light or power, or telephone, telecommunication, or
 
 8 cable television services furnished to consumers during the
 
 9 preceding calendar year."
 
10      SECTION 2.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 3.  This Act shall take effect upon its approval.
 
13 
 
14                              INTRODUCED BY:______________________
 

 
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