Report Title:

Veterans Services; Liquor Taxation

 

Description:

Establishes the Veterans' Services Special Fund to fund positions and programs in the Office of Veterans' Services. Establishes a Veterans' Service Tax on liquor and deposits the revenue into the Veterans' Services Special Fund. Takes effect July 1, 2020. (HB560 HD2)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

560

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO VETERANS SERVICES.

 

 

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

 


SECTION 1. The legislature finds that more members of the Hawaii national guard have been activated for federal service and deployed for combat duty in Afghanistan and Iraq than at any point in Hawaii's history. When the drawdown of American troops stationed in those countries finally occurs, thousands of active and reserve component veterans from Hawaii will return home. The legislature notes that the State's health and social services systems are already overburdened, and moneys available from the general fund to provide additional services for the influx of veterans will be limited. Further, funding for the office of veterans' services, which serves as a liaison between state and federal veterans programs, the governor, and individual veterans and their families, may be limited or reduced during these difficult economic times. Therefore, the legislature finds that it is appropriate to create a special funding mechanism for positions and programs in the office of veterans' services. The legislature further finds that an additional tax on the sale and distribution of liquor is a method for providing the necessary funds. Accordingly, the purpose of this Act is to create the veterans' services special fund, to be funded by a veterans' services tax on liquor.

SECTION 2. Chapter 244D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"244D-    Veterans' services tax; disposition of revenues. (a) In addition to any other taxes provided by law, every person who sells or uses any liquor in the state that is subject to a gallonage tax under this chapter, shall pay a veterans' services tax, which is hereby imposed at the following rates for the various liquor categories defined in section 244D‑1:

(1)       per wine gallon on distilled spirits;

(2)       per wine gallon on sparkling wine;

(3)       per wine gallon on still wine;

(4)       per wine gallon on cooler beverages;

(5)       per wine gallon on beer other than draft beer; and

(6)       per wine gallon on draft beer,

and at a proportionate rate for any other quantity so sold or used.

(b) All moneys collected pursuant to this section shall be deposited to the credit of the veterans' services special fund, established pursuant to section 363- .

(c) The department of taxation shall provide an annual accounting of these deposits to the legislature."

SECTION 3. Chapter 363, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"363- Veterans' services special fund; use of funds. (a) There is established in the state treasury the veterans' services special fund, into which shall be deposited revenue from the veterans' services tax pursuant to section 244D- .

(b) Moneys in the veterans' services special fund shall be used for positions and programs in the office of veterans' services.

(c) The veterans' services special fund shall be administered by the director of the office of veterans' services; provided that no moneys shall be disbursed in a manner that precludes qualified veterans from receiving benefits or assistance from the United States Department of Veterans Affairs.

(d) The director shall adopt rules pursuant to chapter 91 for the purposes of this section."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2020.