REPORT TITLE:



DESCRIPTION:


 
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HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE FUEL TAX.



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

 1      SECTION 1.  The "slice waste and tape", or "SWAT",
 
 2 regulatory reform initiative within the lieutenant governor's
 
 3 office is designed to improve state government by eliminating
 
 4 null and void, unnecessary, ineffective, and overly complex
 
 5 administrative rules that deter economic development and hamper
 
 6 government efficiency.  The intent of this initiative is to
 
 7 reduce the burden of government regulation and minimize its
 
 8 negative effects on Hawaii's residents, businesses, the economy,
 
 9 and government operations.  Strategies to achieve these
 
10 objectives include such measures as improving public access to
 
11 rules, eliminating null and void rules and unnecessary
 
12 regulation, and reviewing and overhauling the rulemaking process.
 
13      The purpose of this Act is to implement one of the
 
14 lieutenant governor's initiatives to eliminate unnecessary
 
15 regulation.  Currently, section 243-10, Hawaii Revised Statutes,
 
16 requires distributors to submit information that is no longer
 
17 used by the department of taxation.  Amending this section to
 
18 repeal these unnecessary reporting requirements will help reduce
 
19 the filing burden and help simplify the department's reporting
 

 
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 1 requirements and form.
 
 2      SECTION 2.  Section 243-10, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "243-10  Statements and payments.  Each distributor and
 
 5 each person subject to section 243-4(b), on or before the last
 
 6 day of each calendar month, shall file with the director of
 
 7 taxation, on forms prescribed, prepared, and furnished by the
 
 8 director, a statement, authenticated as provided in section
 
 9 231-15, showing separately for each county and for the island of
 
10 Lanai and the island of Molokai within which and whereon fuel is
 
11 sold or used during each preceding month of the calendar year,
 
12 the following:
 
13      (1)  The total number of gallons of fuel refined,
 
14           manufactured, or compounded by the distributor or
 
15           person within the State and sold or used by the
 
16           distributor or person, and if for ultimate use in
 
17           another county or on either island, the name of that
 
18           county or island;
 
19     [(2)  The total number of gallons of fuel imported by the
 
20           distributor or person and sold or used by the
 
21           distributor or person, and if for ultimate use in
 
22           another county or on either island, the name of that
 
23           county or island;
 

 
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 1      (3)] (2)  The total number of gallons of fuel acquired by
 
 2           the distributor or person during the month from persons
 
 3           not subject to the tax on the transaction or only
 
 4           subject to tax thereon at the rate of 1 cent per
 
 5           gallon, as the case may be, and sold or used by the
 
 6           distributor or person, and if for ultimate use in
 
 7           another county or on either island, the name of that
 
 8           county or island;
 
 9     [(4)] (3)  The total number of gallons of fuel sold by the
 
10           distributor or person to the United States or any
 
11           department or agency thereof, or to any other person or
 
12           entity, or used in any manner, the effect of which sale
 
13           or use is to exempt the fuel from the tax imposed by
 
14           this chapter;
 
15     [(5)  The total number of gallons of fuel on hand in the
 
16           distributor's or person's possession in all of the
 
17           counties and on the island of Lanai and on the island
 
18           of Molokai at the beginning of the month, the total
 
19           number of gallons thereof refined, manufactured,
 
20           produced, compounded by the distributor or person, or
 
21           acquired from persons not subject to the tax on such
 
22           transaction, or only subject to tax thereon at the rate
 
23           of 1 cent per gallon, as the case may be, or imported
 

 
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 1           during the month, and the total number of gallons
 
 2           thereof on hand in the distributor's or person's
 
 3           possession at the end of the month;] and
 
 4     [(6)] (4)  Additional information relative to the
 
 5           acquisition, purchase, manufacture, or importation into
 
 6           the State, and the sale, use, or other disposition, of
 
 7           diesel oil by the distributor or person during the
 
 8           month, as the department of taxation by rule shall
 
 9           prescribe.
 
10      At the time of submitting the foregoing report to the
 
11 department, each distributor and person shall pay the tax on each
 
12 gallon of fuel (including diesel oil) sold or used by the
 
13 distributor or person in each county and on the island of Lanai
 
14 and the island of Molokai during the preceding month, as shown by
 
15 the statement and required by this chapter; provided that the tax
 
16 shall not apply to any fuel exempted and so long as the same is
 
17 exempted from the imposition of the tax by the Constitution or
 
18 laws of the United States; and the tax shall be paid only once
 
19 upon the same fuel; provided further that a licensed distributor
 
20 shall be entitled, in computing the tax the licensed distributor
 
21 is required to pay, to deduct from the gallons of fuel reported
 
22 for the month for each county or for the island of Lanai or the
 
23 island of Molokai, as the case may be, one gallon for each
 

 
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 1 ninety-nine gallons of like liquid fuel sold by retail dealers in
 
 2 that county or on that island during the month, as shown by
 
 3 certificates furnished by the retail dealers to the distributor
 
 4 and attached to the distributor's report.  All taxes payable for
 
 5 any month shall be delinquent after the expiration of the last
 
 6 day of the following month.
 
 7      Statements filed under this section concerning the number of
 
 8 gallons of fuel refined, manufactured, compounded, imported, sold
 
 9 or used by the distributor or person are public records."
 
10      SECTION 3.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 4.  This Act shall take effect upon its approval.
 
13 
 
14                       INTRODUCED BY:  ___________________________
 

 
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