HOUSE OF REPRESENTATIVES |
H.B. NO. |
2217 |
TWENTY-EIGHTH LEGISLATURE, 2016 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO AMENDING OR REPEALING HAWAII REAL PROPERTY TAX LAWS FOR THE PURPOSE OF DELETING OBSOLETE OR UNNECESSARY PROVISIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that article VIII, section 3, of the state constitution provides that the taxation of real property in the State has been transferred to the several counties. Pursuant to the Supreme Court of Hawaii's decision in State ex rel. Anzai v. City & County of Honolulu, 99 Hawaii 508, 57 P.3d 433 (2002), the need for numerous provisions in the Hawaii Revised Statutes governing the taxation of real property in the State lapsed decades ago, and those provisions are no longer of any force or effect.
SECTION 2. Section 239-5, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) Notwithstanding subsection (a), the rate of tax upon the portion of the gross income of:
(1) A public utility that consists of the receipts from the sale of its products or services to another public utility that resells such products or services shall be one-half of one per cent; or
(2) A public utility engaged in the business of selling telecommunication services to a person defined in section 237-13(6)(C) who resells such products or services, shall be one-half of one per cent;
provided that the
resale of the products, services, or telecommunication services is subject to
taxation under this section or subject to taxation at the highest rate under
section 237-13(6); and provided further that [the public utility's exemption
from real property taxes imposed by chapter 246 shall be reduced by the
proportion that its public utility gross income described herein bears to its
total public utility gross income. Whenever] whenever the public
utility has other public utility gross income, the gross income from the sale
of its products or services to another public utility or a person subject to
section 237-13(6)(C) shall be included in applying subsection (a) in
determining the rate of tax upon the other public utility gross income. The
department shall have the authority to implement the tax rate changes in
paragraph (2) by prescribing tax forms and instructions that require tax
reporting and payment by deduction, allocation, or any other method to
determine tax liability with due regard to the tax rate changes."
SECTION 3. Section 342G-61, Hawaii Revised Statutes, is amended to read as follows:
"[[]§342G-61[]] Solid
waste collection surcharge. Each county may assess residential real
property owners in their respective county an annual solid waste collection
surcharge based on the partial costs of solid waste collection. Notice of this
surcharge shall be included with the notice of assessment required by [section
246-43.] county ordinance."
SECTION 4. Section 248-1, Hawaii Revised Statutes, is amended by amending the definition of "property" or "real property" to read as follows:
""Property" or "real
property" [has the meaning defined by section 246-1.] means and
includes all land and appurtenances thereof and the buildings, structures,
fences, and improvements erected on or affixed to the same, and any fixture
that is erected on or affixed to such land, buildings, structures, fences, and
improvements, including all machinery and other mechanical or other allied
equipment and the foundations thereof, whose use thereof is necessary to the
utility of such land, buildings, structures, fences, and improvements, or whose
removal therefrom cannot be accomplished without substantial damage to such
land, buildings, structures, fences, and improvements, excluding, however, any
growing crops."
SECTION 5. Section 205-14, Hawaii Revised Statutes, is repealed.
["§205-14 Adjustments of assessing
practices. Upon the adoption of district boundaries, certified
copies of the classification maps showing the district boundaries shall be
filed with the department of taxation. Thereafter, the department of taxation
shall, when making assessments of property within a district, give
consideration to the use or uses that may be made thereof as well as the uses
to which it is then devoted."]
SECTION 6. Section 248-5, Hawaii Revised Statutes, is repealed.
["§248-5 Property taxes,
disposition of proceeds. All property taxes shall be paid into the
state treasury each month within ten days after collection. Out of such taxes
paid into the state treasury from each county, the director of finance shall
retain from time to time in special accounts, and shall apply for the specified
purposes, sufficient amounts to pay:
(1) Annual service charges (interest on
serial bonds and principal of serial bonds maturing the following year) for
state bonds issued for the purposes of that county, except highway bonds issued
prior to January 1, 1945;
(2) The county's annual contributions to
the state employees retirement system; and
(3) For any other purpose for which the
director is required to retain county revenues.
The director shall also retain from time to time
sufficient amounts to reimburse the State for the costs of assessment and
collection of real property taxes incurred by the State, as provided for in
section 246-50 to become a general fund realization of the State, and the
director shall then pay the remaining balance to the director of finance of
such county, as soon as possible after the property taxes have been paid into
the state treasury, or after the disposition of any tax appeal, as the case may
be. The county director of finance shall, unless allotments for the purposes
hereinafter stated are made from the county's share of the state general fund
when received by the county, allot from such balance of property taxes, from
time to time, sufficient for the annual service charges (interest on term and
serial bonds, sinking fund for term bonds, and principal of all serial bonds
maturing the following year), for county bonds (except bonds issued prior to January 1,
1945, for highway purposes), and also for other amounts specified or required
by law, and shall keep such allotments in special accounts for use for such
purposes only.
If at any time there shall be insufficient
moneys for the purposes of any special account, moneys in the general account
of the State or county, as the case may be, may be used for such purposes, in
which case the general account may later be reimbursed by transfers from such
special account.
Except as hereinabove provided, the property
taxes paid over to the county director of finance shall be a general fund
revenue of the county, and shall be expended or allotted as authorized by the
council."]
SECTION 7. Chapter 246, Hawaii Revised Statutes, is repealed.
SECTION 8. Chapter 246A, Hawaii Revised Statutes, is repealed.
SECTION 9. This Act shall take effect on July 1, 2016.
Report Title:
Real Property Tax
Description:
Repeals various sections of the real property tax laws for the purpose of deleting obsolete and unnecessary provisions. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.