Report Title:

Motor Vehicle Tax

Description:

Establishes a four per cent tax on the sale of a vehicle from one individual to another that is not otherwise taxed by chapter 237. Establishes a fee on noncommercial vehicles equal to fifty per cent of the vehicle registration tax for vehicles that cost over $20,000 but less than $30,000, and one hundred per cent for cars that cost at least $30,000. Provides that all moneys collected from the vehicle sales tax and the registration fee be put into a salary special fund created to increase the salaries of University of Hawaii professors.

HOUSE OF REPRESENTATIVES

H.B. NO.

2163

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MOTOR VEHICLE taxation.

 

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

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

TAX ON INDIVIDUAL SALES OF NONCOMMERCIAL VEHICLES

§ -1 Definitions. As used on this chapter, unless the context otherwise requires:

"Noncommercial motor vehicle" includes all vehicles within the definition of "motor vehicle" as defined in section 249-1, except that it shall not include vehicles used by a business or nonprofit organization.

§ -2 Personal sale of motor vehicles; tax imposed. The sale of every noncommercial motor vehicle that is not taxed under chapter 237 shall be subject to a four per cent tax on the sale price of the motor vehicle. Taxes collected pursuant to this subsection shall be deposited into the salary special fund created by section 304- ."

SECTION 2. Section 249-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Noncommercial motor vehicle" includes all motor vehicles, except that it shall not include vehicles used by a business or nonprofit organization."

SECTION 3. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§304- Salary special fund. There is established within the state treasury the salary special fund to be administered and expended by the university, into which shall be deposited fees remitted pursuant to section 249-2(b) and chapter      . Moneys in the special fund shall be used at the discretion of the university for salaries for professors at the university."

SECTION 4. Section 249-2, Hawaii Revised Statutes, is amended to read as follows:

"§249-2 Imposition of tax. (a) Except as otherwise provided in sections 249-1 to 249-13, and except in the case of antique motor vehicles which shall be subject to an annual tax of $10 in lieu of the annual tax otherwise imposed by this section, all vehicles and motor vehicles as defined in section 249-1, shall be subject to an annual tax, computed, except for the minimum tax provided for in section 249-13 according to the net weight of each vehicle at a rate determined as hereinafter provided in section 249-13. The tax shall become due and payable on January 1 and must be paid before April 1, in each year. The tax shall be paid by the owner of each vehicle in the county in which the vehicle is located at the time of registration, whether the original registration or any subsequent registration, and shall be collected by the director of finance of such county; provided that if any such vehicle is transported to another county after the payment of such tax, no additional tax shall be imposed on such vehicle for the remaining period of the year for which such tax has been paid.

(b) In addition to the tax imposed by subsection (a), noncommercial motor vehicles as defined in section 249-1, shall be subject to an annual fee, computed as follows:

(1) For vehicles sold for more than $20,000 but less than $30,000, fifty per cent of the vehicle registration tax; and

(2) For vehicles sold for $30,000 or more, one hundred per cent of the vehicle registration tax.

Fees paid pursuant to this subsection shall be deposited into the salary special fund created by section 304- ."

SECTION 5. Section 286-41, Hawaii Revised Statutes, is amended to read as follows:

"§286-41 Application for registration; full faith and credit to current certificates; this part not applicable to certain equipment. (a) Every owner of a motor vehicle which is to be operated upon the public highways shall, for each vehicle owned, except as herein otherwise provided, apply to the director of finance of the county where the vehicle is to be operated, for the registration thereof. If a vehicle is moved to another county and is to be operated upon the public highways of that county, the existing certificate of registration shall be valid until its expiration date, at which time the owner shall apply to the director of finance of the county in which the vehicle is then located for the registration of the vehicle, whether or not the owner is domiciled in the county or the owner's principal place of business is in that county, except that this provision shall not apply to vehicles which are temporarily transferred to another county for a period of not more than three months.

(b) Application for the registration of a vehicle shall be made upon the appropriate form furnished by the director of finance and shall contain the name, occupation, and address of the owner and legal owner; and, if the applicant is a member of the United States naval or military forces, the applicant shall give the organization and station. All applications shall also contain a description of the vehicle, including the name of the maker, the type of fuel for the use of which it is adapted (e.g., gasoline, diesel oil, liquefied petroleum gas), the serial or motor number, and the date first sold by the manufacturer or dealer, and such further description of the vehicle as is called for in the form, and such other information as may be required by the director of finance, to establish legal ownership. A person applying for initial registration of a neighborhood electric vehicle shall certify in writing that a notice of the operational restrictions applying to the vehicle as provided in section 291C-134 are contained on a permanent notice attached to or painted on the vehicle in a location that is in clear view of the driver.

(c) If the vehicle to be registered is specially constructed, reconstructed, or rebuilt; is a special interest vehicle; or is an imported vehicle, this fact shall be stated in the application and upon the registration of the special interest motor vehicle and imported motor vehicle, which has been registered until that time in any other state or county, and the owner shall surrender to the director of finance the certificates of registration or other evidence of such form of registration as may be in the applicant's possession or control. The director of finance shall grant full faith and credit to the currently valid certificates of title and registration describing the vehicle, the ownership thereof, and any liens noted thereon, issued by any title state or county in which the vehicle was last registered. The acceptance by the director of finance of a certificate of title or of registration issued by another state or county, as provided in this subsection, in the absence of knowledge that the certificate is forged, fraudulent, or void, shall be a sufficient determination of the genuineness and regularity of the certificate and of the truth of the recitals therein, and no liability shall be incurred by any officer or employee of the director of finance by reason of so accepting the certificate.

(d) The owner of every motor vehicle of the current, previous, and subsequent year model bought out-of-state, subsequently brought into the State, and subject to the use tax under chapter 238 shall provide with the application for registration proof of payment of the use tax pursuant to requirements established by the department [of taxation]. No registration certificate shall be issued without proof of payment of the use tax.

(e) No registration certificate shall be issued upon the individual sale of a noncommercial vehicle without proof of payment of the tax on the sale of the vehicle to be registered. For purposes of this subsection, "individual sale" means the sale of a vehicle from one individual to another, which is not otherwise taxed under chapter 237.

[(e)](f) Notwithstanding any other law to the contrary, the director of finance of the county in which the application for registration is sought shall not require proof of insurance as a condition to satisfy the requirements of this part. This subsection shall apply only to the initial registration of any motor vehicle.

[(f)](g) The provisions of this part requiring the registration of motor vehicles shall not apply to:

(1) Special mobile equipment;

(2) Implements of husbandry temporarily drawn, moved, or otherwise propelled upon the public highways; and

(3) Aircraft servicing vehicles which are being used exclusively on lands set aside to the department of transportation for airport purposes."

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

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:

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