HOUSE OF REPRESENTATIVES

H.B. NO.

1587

TWENTY-NINTH LEGISLATURE, 2017

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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

 


SECTION 1. Section 39-94, Hawaii Revised Statutes, is amended to read as follows:

"39-94 Arrangement of statements and schedules and forms; incorporation. In preparing the statements and supporting schedules required by this part, the director of finance may arrange, group, and set forth [such] the information and figures in [such] a manner as the director deems necessary or advisable. [Such] The information and figures need not be set out or arranged in the same order as is set forth in this part, so long as the information and figures required by this part are set forth.

All findings certified to in accordance with this part shall be deemed to be incorporated into subsequent statements and supporting schedules to the extent relevant thereto. [Such] The findings need not be made again in any subsequent statement or supporting schedule, nor need the legal and financial basis for [such] the findings be set forth again.

The state highway system established in part III of chapter 264 shall be deemed to be a public system that produces revenues and user tax receipts. All liquid fuel taxes as defined in section 243-1, other than taxes on aviation fuel as defined in that section, and all vehicle [weight] ad valorem taxes as defined in section 249-33 [which] that are paid into the state highway fund created by section 248-8 and [which] that are not required by sections 243-6 and 248-9 to be paid to the counties shall be deemed to be user taxes derived in the utilization of the functions and services furnished by the state highway system.

Amounts received from the federal government for the payment or reimbursement of costs of operation, maintenance, and repair of a public undertaking, improvement, or system or for the payment of the principal and interest of bonds issued for [such] the public undertaking, improvement, or system, and for the payment or reimbursement of costs of administering, operating, and maintaining a loan program or for the payment of subsidies for a loan program, may be considered and treated as revenues of such undertaking, improvement, system, or loan program. If [such] the amounts are deposited in the general fund immediately upon their receipt by the State, [such] the amounts shall be deducted from the general fund revenues when determining the net general fund revenues for the purposes of this part, to the extent [such] the amounts are utilized to justify or support a determination that bonds of the State may be excluded when determining the total outstanding indebtedness of the State for the purposes of section 13 of Article VII of the Constitution[.] of the State of Hawaii.

The director of finance may compose and adopt and have printed or otherwise reproduced any forms the director deems will facilitate the preparation and understanding of statements and supporting schedules required by this part.

All departments, boards, authorities, and officers of the State shall cooperate with the director of finance to the extent required to enable the director to prepare the statements and supporting schedules required by this part."

SECTION 2. Section 249-33, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:

"249-33 State vehicle [weight] ad valorem tax, exemptions. (a) All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4, 249-5.5, 249-6, and 249-6.5, in addition to all other fees and taxes levied by this chapter, shall be subject to an annual state vehicle [weight] ad valorem tax. The tax shall be levied by the county director of finance [at the rate of 1.75 cents a pound according to the net weight of each vehicle as the "net weight" is defined in section 249-1 up to and including four thousand pounds net weight; vehicles over four thousand pounds and up to and including seven thousand pounds net weight shall be taxed at the rate of 2.00 cents a pound; vehicles over seven thousand pounds and up to and including ten thousand pounds net weight shall be taxed at the rate of 2.25 cents a pound; vehicles over ten thousand pounds net weight shall be taxed at a flat rate of $300.] at the rate of $         per $1,000 of the assessed value of the vehicle.

For the purposes of this section, "assessed value" means thirty per cent of the manufacturer's suggested retail price, reduced for depreciation over a ten-year period; provided that in no event shall the assessed value of a vehicle be less than $100.

(b) The tax shall become due and payable in each year together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51, the state vehicle [weight] ad valorem tax shall likewise be staggered so that the state vehicle [weight] ad valorem tax is collected together with the county fee. The state vehicle [weight] ad valorem tax shall be deemed delinquent if not paid with the county registration fee. The tax shall be paid by the owner of each vehicle to the director of finance of the county in which the vehicle is registered and shall be collected by the director of finance of such county together with all other fees and taxes levied by this chapter from the owner of each vehicle and motor vehicle registered in the county.

By the fifteenth day of the month following the month in which taxes under this section are collected, the director of finance of each county shall transmit the taxes collected to the state director of finance for deposit into the state highway fund."

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

SECTION 4. This Act shall take effect on July 1, 2050.


 


 

Report Title:

State Vehicle Ad Valorem Tax

 

Description:

Replaces the state vehicle weight tax with a tax based on the assessed value of a vehicle. (HB1587 HD1)

 

 

 

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