THE SENATE

S.B. NO.

659

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING to transportation.

 

 

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

 


SECTION 1. The legislature finds that not only is climate change real, but it is also the overriding challenge of the twenty-first century and one of the priority issues of the State. Climate change poses immediate and long-term threats to the State's economy, sustainability, security, and way of life. Hawaii has a tradition of environmental leadership, having prioritized policies regarding conservation, reduction in greenhouse gas emissions, and development and use of alternative renewable energy. The legislature has passed numerous measures over the last decade to address climate change. Hawaii's dependence on imported fossil fuels drains the state economy of billions of dollars each year. The volatility of imported fuel prices creates significant risks for the economy and adds to costs for local families. The legislature further finds that the use of fossil fuel reduces air quality and leads to increased greenhouse gas emissions in the atmosphere. This contributes to climate change, which poses a serious threat to Hawaii's economic well-being, public health, natural resources, and environment. Climate change harms marine ecosystems and causes sea levels to rise, which results in the displacement of coastal residences and businesses. Climate change also poses a serious threat to public health by increasing the incidence of infectious diseases, asthma, and other health-related problems.

The legislature finds that transforming the ground transportation sector has been an unrealized dream for two decades. The legislature notes that on a per-mile basis, it is less expensive to commute in an electric, hydrogen, or biodiesel powered bus than it is to commute in a gas-powered automobile. Residents can lower their cost of living by relying on local renewable energy for transportation and transitioning to less-expensive renewable vehicles and transportation systems. However, for local consumers and families to benefit from these changes and properly transition away from expensive fossil fuel vehicles, Hawaii must be prepared with critical infrastructure elements.

The purpose of this Act is to lay the groundwork to allow the State to transition to one hundred per cent clean ground transportation in the near future.

SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"196-   State alternative transit fund. There is established in the state treasury the state alternative transit fund, into which shall be deposited:

(1) Fines imposed pursuant section 237D-2(f);

(2) Income surcharge imposed pursuant section 235-51;

(3) Additional rental motor vehicle and tour vehicle surcharge tax imposed under section 251-2; and

(4) Legislative appropriations.

Moneys in the fund shall be allocated to the counties to finance efforts to offer reduced fare and free fares on electric, biodiesel, or hydrogen powered county buses. If a county does not provide for all free fares, then priority shall be given to seniors, students, persons with disabilities, and low-income riders."

SECTION 3. Section 235-20.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established a tax administration special fund, into which shall be deposited:

(1) Fees collected under sections 235-20, 235-110.9, and 235-110.91;

(2) Revenues collected by the special enforcement section pursuant to section 231-85; provided that in each fiscal year, of the total revenues collected by the special enforcement section, all revenues in excess of $2,000,000 shall be deposited into the general fund; and

(3) Fines assessed pursuant to section 237D-4[.], except as provided in that section."

SECTION 4. Section 235-51, Hawaii Revised Statutes, is amended by amending subsections (a) to (c) to read as follows:

"(a) There is hereby imposed on the taxable income of every:

(1) Taxpayer who files a joint return under section 235-93; and

(2) Surviving spouse,

a tax determined in accordance with the following table:

In the case of any taxable year beginning after December 31, 2001:

If the taxable income is: The tax shall be:

Not over $4,000 1.40% of taxable income

Over $4,000 but $56.00 plus 3.20% of

not over $8,000 excess over $4,000

Over $8,000 but $184.00 plus 5.50% of

not over $16,000 excess over $8,000

Over $16,000 but $624.00 plus 6.40% of

not over $24,000 excess over $16,000

Over $24,000 but $1,136.00 plus 6.80% of

not over $32,000 excess over $24,000

Over $32,000 but $1,680.00 plus 7.20% of

not over $40,000 excess over $32,000

Over $40,000 but $2,256.00 plus 7.60% of

not over $60,000 excess over $40,000

Over $60,000 but $3,776.00 plus 7.90% of

not over $80,000 excess over $60,000

Over $80,000 $5,356.00 plus 8.25% of

excess over $80,000.

In the case of any taxable year beginning after December 31, 2006:

If the taxable income is: The tax shall be:

Not over $4,800 1.40% of taxable income

Over $4,800 but $67.00 plus 3.20% of

not over $9,600 excess over $4,800

Over $9,600 but $221.00 plus 5.50% of

not over $19,200 excess over $9,600

Over $19,200 but $749.00 plus 6.40% of

not over $28,800 excess over $19,200

Over $28,800 but $1,363.00 plus 6.80% of

not over $38,400 excess over $28,800

Over $38,400 but $2,016.00 plus 7.20% of

not over $48,000 excess over $38,400

Over $48,000 but $2,707.00 plus 7.60% of

not over $72,000 excess over $48,000

Over $72,000 but $4,531.00 plus 7.90% of

not over $96,000 excess over $72,000

Over $96,000 $6,427.00 plus 8.25% of

excess over $96,000.

In the case of any taxable year beginning after December 31, 2017:

If the taxable income is: The tax shall be:

Not over $4,800 1.40% of taxable income

Over $4,800 but $67.00 plus 3.20% of

not over $9,600 excess over $4,800

Over $9,600 but $221.00 plus 5.50% of

not over $19,200 excess over $9,600

Over $19,200 but $749.00 plus 6.40% of

not over $28,800 excess over $19,200

Over $28,800 but $1,363.00 plus 6.80% of

not over $38,400 excess over $28,800

Over $38,400 but $2,016.00 plus 7.20% of

not over $48,000 excess over $38,400

Over $48,000 but $2,707.00 plus 7.60% of

not over $72,000 excess over $48,000

Over $72,000 but $4,531.00 plus 7.90% of

not over $96,000 excess over $72,000 Over $96,000 but $6,427.00 plus 8.25% of

not over $300,000 excess over $96,000 Over $300,000 but $23,257.00 plus 9.00% of

not over $350,000 excess over $300,000

Over $350,000 but $27,757.00 plus 10.00% of

not over $400,000 excess over $350,000

Over $400,000 $32,757.00 plus 11.00% of

excess over $400,000.

In the case of any taxable year beginning after December 31, 2018, there shall be imposed a surcharge of 1% of any amount of tax collected pursuant to this subsection over $2,500,000, to be deposited into the state alternative transit fund established pursuant to section 196-  .

(b) There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:

In the case of any taxable year beginning after December 31, 2001:

If the taxable income is: The tax shall be:

Not over $3,000 1.40% of taxable income

Over $3,000 but $42.00 plus 3.20% of

not over $6,000 excess over $3,000

Over $6,000 but $138.00 plus 5.50% of

not over $12,000 excess over $6,000

Over $12,000 but $468.00 plus 6.40% of

not over $18,000 excess over $12,000

Over $18,000 but $852.00 plus 6.80% of

not over $24,000 excess over $18,000

Over $24,000 but $1,260.00 plus 7.20% of

not over $30,000 excess over $24,000

Over $30,000 but $1,692.00 plus 7.60% of

not over $45,000 excess over $30,000

Over $45,000 but $2,832.00 plus 7.90% of

not over $60,000 excess over $45,000

Over $60,000 $4,017.00 plus 8.25% of

excess over $60,000.

In the case of any taxable year beginning after December 31, 2006:

If the taxable income is: The tax shall be:

Not over $3,600 1.40% of taxable income

Over $3,600 but $50.00 plus 3.20% of

not over $7,200 excess over $3,600

Over $7,200 but $166.00 plus 5.50% of

not over $14,400 excess over $7,200

Over $14,400 but $562.00 plus 6.40% of

not over $21,600 excess over $14,400

Over $21,600 but $1,022.00 plus 6.80% of

not over $28,800 excess over $21,600

Over $28,800 but $1,512.00 plus 7.20% of

not over $36,000 excess over $28,800

Over $36,000 but $2,030.00 plus 7.60% of

not over $54,000 excess over $36,000

Over $54,000 but $3,398.00 plus 7.90% of

not over $72,000 excess over $54,000

Over $72,000 $4,820.00 plus 8.25% of

excess over $72,000.

In the case of any taxable year beginning after December 31, 2017:

If the taxable income is: The tax shall be:

Not over $3,600 1.40% of taxable income

Over $3,600 but $50.00 plus 3.20% of

not over $7,200 excess over $3,600

Over $7,200 but $166.00 plus 5.50% of

not over $14,400 excess over $7,200

Over $14,400 but $562.00 plus 6.40% of

not over $21,600 excess over $14,400

Over $21,600 but $1,022.00 plus 6.80% of

not over $28,800 excess over $21,600

Over $28,800 but $1,512.00 plus 7.20% of

not over $36,000 excess over $28,800

Over $36,000 but $2,030.00 plus 7.60% of

not over $54,000 excess over $36,000

Over $54,000 but $3,398.00 plus 7.90% of

not over $72,000 excess over $54,000

Over $72,000 but $4,820.00 plus 8.25% of

not over $225,000 excess over $72,000

Over $225,000 but $17,443.00 plus 9.00% of

not over $262,500 excess over $225,000

Over $262,500 but $20,818.00 plus 10.00% of

not over $300,000 excess over $262,500

Over $300,000 $24,568.00 plus 11.00% of

excess over $300,000.

In the case of any taxable year beginning after December 31, 2018, there shall be imposed a surcharge of 1% of any amount of tax collected pursuant to this subsection over $2,500,000, to be deposited into the state alternative transit fund established pursuant to section 196-  .

(c) There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:

In the case of any taxable year beginning after December 31, 2001:

If the taxable income is: The tax shall be:

Not over $2,000 1.40% of taxable income

Over $2,000 but $28.00 plus 3.20% of

not over $4,000 excess over $2,000

Over $4,000 but $92.00 plus 5.50% of

not over $8,000 excess over $4,000

Over $8,000 but $312.00 plus 6.40% of

not over $12,000 excess over $8,000

Over $12,000 but $568.00 plus 6.80% of

not over $16,000 excess over $12,000

Over $16,000 but $840.00 plus 7.20% of

not over $20,000 excess over $16,000

Over $20,000 but $1,128.00 plus 7.60% of

not over $30,000 excess over $20,000

Over $30,000 but $1,888.00 plus 7.90% of

not over $40,000 excess over $30,000

Over $40,000 $2,678.00 plus 8.25% of

excess over $40,000.

In the case of any taxable year beginning after December 31, 2006:

If the taxable income is: The tax shall be:

Not over $2,400 1.40% of taxable income

Over $2,400 but $34.00 plus 3.20% of

not over $4,800 excess over $2,400

Over $4,800 but $110.00 plus 5.50% of

not over $9,600 excess over $4,800

Over $9,600 but $374.00 plus 6.40% of

not over $14,400 excess over $9,600

Over $14,400 but $682.00 plus 6.80% of

not over $19,200 excess over $14,400

Over $19,200 but $1,008.00 plus 7.20% of

not over $24,000 excess over $19,200

Over $24,000 but $1,354.00 plus 7.60% of

not over $36,000 excess over $24,000

Over $36,000 but $2,266.00 plus 7.90% of

not over $48,000 excess over $36,000

Over $48,000 $3,214.00 plus 8.25% of

excess over $48,000.

In the case of any taxable year beginning after December 31, 2017:

If the taxable income is: The tax shall be:

Not over $2,400 1.40% of taxable income

Over $2,400 but $34.00 plus 3.20% of

not over $4,800 excess over $2,400

Over $4,800 but $110.00 plus 5.50% of

not over $9,600 excess over $4,800

Over $9,600 but $374.00 plus 6.40% of

not over $14,400 excess over $9,600

Over $14,400 but $682.00 plus 6.80% of

not over $19,200 excess over $14,400

Over $19,200 but $1,008.00 plus 7.20% of

not over $24,000 excess over $19,200

Over $24,000 but $1,354.00 plus 7.60% of

not over $36,000 excess over $24,000

Over $36,000 but $2,266.00 plus 7.90% of

not over $48,000 excess over $36,000

Over $48,000 but $3,214.00 plus 8.25% of

not over $150,000 excess over $48,000

Over $150,000 but $11,629.00 plus 9.00% of

not over $175,000 excess over $150,000

Over $175,000 but $13,879.00 plus 10.00% of

not over $200,000 excess over $175,000

Over $200,000 $16,379.00 plus 11.00% of

excess over $200,000.

In the case of any taxable year beginning after December 31, 2018, there shall be imposed a surcharge of 1% of any amount of tax collected pursuant to this subsection over $2,500,000, to be deposited into the state alternative transit fund established pursuant to section 196-  ."

SECTION 5. Section 237D-4, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

"(g) Any person who may lawfully be required by the State, and who is required by this chapter, to register as a condition precedent to engaging or continuing in the business of furnishing transient accommodations or as a plan manager subject to taxation under this chapter, who engages or continues in the business without registering in conformity with this chapter, shall be guilty of a misdemeanor. Any director, president, secretary, or treasurer of a corporation who permits, aids, or abets such corporation to engage or continue in business without registering in conformity with this chapter, shall likewise be guilty of a misdemeanor. The penalty for the misdemeanors shall be the same as that prescribed by section 231-35 for individuals, corporations, or officers of corporations, as the case may be, for violation of that section. In addition to the penalties for misdemeanors pursuant to this subsection, the director shall impose an administrative fine of $100 per day of violation on any misdemeanant.

Administrative fines collected pursuant to this subsection shall be deposited into the state alternative transit fund established pursuant to section 196-  ."

SECTION 6. Section 251-2, Hawaii Revised Statutes, is amended to read as follows:

"251-2 Rental motor vehicle and tour vehicle surcharge tax. (a) There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $3 a day, or any portion of a day that a rental motor vehicle is rented or leased; provided that lessees without a valid Hawaii driver's license shall be assessed an additional [$2] $3 a day, or any portion of a day that a rental motor vehicle is rented or leased. The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:

(1) The lessor is renting the vehicle to replace a vehicle of the lessee that is being repaired; and

(2) A record of the repair order for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16.

In addition to the requirements imposed by section 251-4, a lessor shall disclose, to the department, the portion of the remittance attributed to the county in which the motor vehicle was operated under rental or lease.

(b) Of the remittances collected pursuant to [this] subsection[, $2 per day or portion of a day] (a) from each lessee without a valid Hawaii driver's license:

(1) $2 per day or portion of a day shall be deposited into the state treasury to the credit of the respective county subaccount of the state highway fund, established pursuant to section 248-9(c), that corresponds to the county in which the rental motor vehicle was driven under rental or lease[.]; and

(2) $1 per day or portion of a day shall be deposited into the state alternative transit fund established pursuant to section 196-  .

[(b)] (c) There is levied and shall be assessed and collected each month a tour vehicle surcharge tax of:

(1) $66 for each tour vehicle used or partially used during the month that falls into the over twenty-five passenger seat category; and

(2) $16 for each tour vehicle used or partially used during the month that falls into the eight to twenty-five passenger seat category.

The tour vehicle surcharge tax shall be levied upon the tour vehicle operator. There shall be levied an additional tour vehicle surcharge tax of $1 for each tour vehicle used or partially used during the month, which shall be deposited into the state alternative transit fund established pursuant to section 196-  ."

SECTION 7. Section 251-5, Hawaii Revised Statutes, is amended to read as follows:

"251-5 Remittances. All remittances of surcharge taxes imposed under this chapter shall be made by cash, bank draft, cashier's check, money order, or certificate of deposit to the office of the taxation district to which the return was transmitted. The department shall deposit the moneys into the state treasury to the credit of the state highway fund; provided that [user]:

(1) User fee revenues that are levied, assessed, and collected pursuant to section 251-2(a) from lessees without a valid Hawaii drivers license shall be deposited in accordance with section [248-9(c).] 251-2(b); and

(2) Additional tour vehicle surcharge taxes collected pursuant to section 251-2(c) shall be deposited in accordance with that section."

SECTION 8. The counties may adopt measures to mandate the transition to renewable, low greenhouse gas emission ground transportation.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on January 1, 2020.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Transportation; Climate Change; State Alternative Transit Fund; Transient Accommodation Tax; Individual Income Tax; Rental Motor Vehicle and Tour Vehicle Surcharge Tax

 

Description:

Establishes the state alternative transit fund to allow counties to offer free or nearly free fares on eco-friendly county buses. Imposes a fine for unlicensed transient accommodations. Establishes a surcharge on individual income over $2.5 million. Increases the rental motor vehicle and tour vehicle surcharge tax. Requires the new fine, surcharge, and tax increase to be deposited into the state alternative transit fund.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.