Report Title:

Gasoline Tax Revenues; Fixed Guideway Mass Transit

Description:

Reserves a portion of state gasoline tax revenues paid in Honolulu to pay for a fixed guideway mass transit system.

HOUSE OF REPRESENTATIVES

H.B. NO.

2956

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to mass transit.

 

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

SECTION 1. Chapter 243, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"243- Mass transit planning account; established. (a) There is established, as a special account within the general fund, a mass transit planning account into which shall be paid tax revenues collected and allotted pursuant to section 243-4(a) and (b); provided that the total amount deposited into the special account shall not exceed $3,600,000. No later than January 1, 2007, the state director of finance shall transfer $600,000 from the mass transit planning account to a separate account of the highway fund established pursuant to section 249-18 of each county having a population greater than five hundred thousand.

(b) Upon receiving the $600,000 under subsection (a), the county shall utilize the moneys to develop and finalize a mass transit work plan that includes the use of a fixed guideway mass transit system. The county council shall approve the finalized mass transit work plan through the adoption of a resolution within one year of receipt of the funds under subsection (a) in order to qualify for the receipt of moneys under subsection (c).

(c) Upon the adoption of a resolution by the county council finalizing the mass transit work plan and notification of the finalization from the county council, the state director of finance shall transfer the remaining $3,000,000 from the mass transit planning account to the separate account of the county's highway fund established pursuant to section 249-18 to execute an environmental impact statement on, and establish a financial plan for, a fixed guideway mass transit system. The county shall complete the environmental impact statement and the financial plan within two years of receipt of the moneys under this subsection. If the county fails to complete the environmental impact statement and the financial plan, then the county shall be liable to the State for the return of all moneys transferred pursuant to this section; provided that the legislature, by the adoption of a concurrent resolution, may extend the two-year period for good cause.

(d) If the county council fails to adopt a finalized mass transit work plan within one year of receipt of the moneys under subsection (a), or the moneys transferred to the county under subsection (c) are in excess of the needs of the county to execute an environmental impact statement and financial plan, then all remaining moneys left in the mass transit planning account and the moneys transferred to the county in excess of their needs shall be returned to the state general fund. Upon the transfer of the moneys under subsection (c), the state director of finance may abolish the special account. Any funds remaining in the account shall lapse to the credit of the general fund."

SECTION 2. Section 243-4, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) Every distributor [shall], in addition to any other taxes provided by law, shall pay a license tax to the department of taxation for each gallon of liquid fuel refined, manufactured, produced, or compounded by the distributor and sold or used by the distributor in the State or imported by the distributor, or acquired by the distributor from persons who are not licensed distributors, and sold or used by the distributor in the State. Any person who sells or uses any liquid fuel knowing that the distributor from whom it was originally purchased has not paid and is not paying the tax thereon shall pay [such] the tax as would have applied to [such] the sale or use by the distributor. The rates of tax hereby imposed are as follows:

(1) For each gallon of diesel oil, 1 cent;

(2) For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 1 cent;

(3) For each gallon of liquid fuel other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, 16 cents state tax, and in addition [thereto such] to that amount, to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5; provided that of the 16 cents state tax, cents shall be paid into a special account within the general fund, established pursuant to section 243- , and disbursed in accordance with that section into a separate account of the highway fund of a county having a population greater than five hundred thousand, established pursuant to section 249-18, to develop and finalize a mass transit work plan, execute an environmental impact statement, and establish a financial plan for a fixed guideway mass transit system;

(4) For each gallon of liquid fuel other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, 16 cents state tax, and in addition [thereto such] to that amount, to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

(5) For each gallon of liquid fuel other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, 16 cents state tax, and in addition [thereto such] to that amount, to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

(6) For each gallon of liquid fuel other than fuel mentioned in paragraphs (1) and (2), and other than an alternative fuel, sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, 16 cents state tax, and in addition [thereto such] to that amount, to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

If it is shown to the satisfaction of the department, based upon proper records and from [such] any other evidence as the department may require, that liquid fuel, other than fuel mentioned in paragraphs (1) and (2), is used for agricultural equipment that does not operate upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by this section in excess of 1 cent per gallon. The department shall adopt rules to administer [such] the refunds.

(b) Every distributor of diesel oil, in addition to the tax required by subsection (a), shall pay a license tax to the department for each gallon of [such] diesel oil sold or used by the distributor for operating a motor vehicle or motor vehicles upon public highways of the State. The rates of the additional tax hereby imposed are as follows:

(1) For each gallon of diesel oil sold or used in the city and county of Honolulu, or sold in any other county for ultimate use in the city and county of Honolulu, 15 cents state tax, and in addition [thereto such] to that amount, to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5; provided that of the 15 cents state tax, cents shall be paid into a special account within the general fund established pursuant to section 243- , and disbursed in accordance with that section into a separate account of the highway fund of a county having a population greater than five hundred thousand, established pursuant to section 249-18, to develop and finalize a mass transit work plan, execute an environmental impact statement, and establish a financial plan for a fixed guideway mass transit system;

(2) For each gallon of diesel oil sold or used in the county of Hawaii, or sold in any other county for ultimate use in the county of Hawaii, 15 cents state tax, and in addition [thereto such] to that amount, to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

(3) For each gallon of diesel oil sold or used in the county of Maui, or sold in any other county for ultimate use in the county of Maui, 15 cents state tax, and in addition [thereto such] to that amount, to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

(4) For each gallon of diesel oil sold or used in the county of Kauai, or sold in any other county for ultimate use in the county of Kauai, 15 cents state tax, and in addition [thereto such] to that amount, to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

If any user of diesel oil furnishes a certificate, in [such] a form as the department shall prescribe, to the distributor, or the distributor who uses diesel oil signs [such] the certificate, certifying that the diesel oil is for use in operating a motor vehicle or motor vehicles in areas other than upon the public highways of the State, the tax as provided in paragraphs (1) to (4) shall not be applicable. In the event a certificate is not or cannot be furnished and the diesel oil is in fact for use for operating a motor vehicle or motor vehicles in areas other than upon public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by [the foregoing] paragraphs[.] (1) to (4). The department shall adopt rules to administer the refunding of [such] the taxes."

SECTION 3. Section 249-18, Hawaii Revised Statutes, is amended to read as follows:

"249-18 Highway fund. All taxes collected under this chapter, except those collected pursuant to sections 249-14 and 249-14.5, shall be deposited in a fund to be known as the "highway fund" and shall be expended in the county in which the taxes are collected for the following purposes:

(1) For acquisition, designing, construction, improvement, repair, and maintenance of public roads and highways, including without restriction of the foregoing purposes, costs of new land therefor, of permanent storm drains or new bridges, as well as repairs or additions to storm drains or bridges;

(2) For installation, maintenance, and repair of street lights and power, and other charges for street lighting purposes, including replacement of old street lights, on county maintained public roads and highways;

(3) For purposes and functions connected with traffic control and preservation of safety upon the public highways and streets;

(4) For payment of interest on and redemption of bonds issued to finance highway and street construction and improvements;

(5) In the case of the city and county of Honolulu, for appropriation for the police department up to the sum of $500,000. No expenditures shall be made out of this fund [which] that will jeopardize federal aid for highway construction;

(6) For purposes and functions connected with mass transit; [and] provided that for any county having a population greater than five hundred thousand, the county shall establish a separate account within its highway fund into which shall be deposited the portion of state license tax revenues allotted for each gallon of fuel taxed under section 243-4(a)(3), and the portion of state license tax revenues allotted for each gallon of diesel oil taxed under section 243-4(b)(1) and transferred from the mass transit planning account established under section 243- , to develop and finalize a mass transit work plan, execute an environmental impact statement, and establish a financial plan for a fixed guideway mass transit system. No expenditures shall be made out of this fund that will jeopardize federal aid for highway construction; and

(7) For the acquisition, design, construction, improvement, repair, and maintenance of bikeways."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect July 1, 2006.

INTRODUCED BY:

_____________________________