HRS § 237-8.6 — Bill


House Bill
§237-8.6 County surcharge on state
tax; administration. [Section repealed December 31, 2030. L Sp 2017, c
1, §6.] (a) The county surcharge on state tax, upon the adoption of
county ordinances and in accordance with the requirements of section 46-16.8,
shall be levied, assessed, and collected as provided in this section on all
gross proceeds and gross income taxable under this chapter. No county shall
set the surcharge on state tax at a rate greater than one-half per cent of all
gross proceeds and gross income taxable under this chapter. All provisions of
this chapter shall apply to the county surcharge on state tax. With respect to
the surcharge, the director of taxation shall have all the rights and powers
provided under this chapter. In addition, the director of taxation shall have
the exclusive rights and power to determine the county or counties in which a
person is engaged in business and, in the case of a person engaged in business
in more than one county, the director shall determine, through apportionment or
other means, that portion of the surcharge on state tax attributable to
business conducted in each county.
(b) Each county surcharge on state tax that
may be adopted, extended, or amended pursuant to section 46-16.8 shall be
levied beginning in a taxable year after the adoption of the relevant county
ordinance; provided that no surcharge on state tax may be levied:
(1) Before:
(A) January 1, 2007, if the county surcharge
on state tax was established by an ordinance adopted before December 31, 2005;
(B) January 1, 2019, if the county surcharge
on state tax was established by the adoption of an ordinance after June 30,
2015, but before June 30, 2018;
(C) January 1, 2020, if the county surcharge
on state tax was established by the adoption of an ordinance on or after June
30, 2018, but before March 31, 2019;
(D) January 1, 2024, if the county surcharge
on state tax was established by the adoption of an ordinance on or after March
31, 2019, but before August 1, 2023; or
(E) January 1, 2025, if the county surcharge
on state tax was established by the adoption of an ordinance on or after August
1, 2023, but before December 31, 2023; and
(2) After December 31, 2030.
(c) The county surcharge on state tax, if
adopted, shall be imposed on the gross proceeds or gross income of all written
contracts that require the passing on of the taxes imposed under this chapter;
provided that if the gross proceeds or gross income are received as payments
beginning in the taxable year in which the taxes become effective, on contracts
entered into before June 30 of the year prior to the taxable year in which the
taxes become effective, and the written contracts do not provide for the passing
on of increased rates of taxes, the county surcharge on state tax shall not be
imposed on the gross proceeds or gross income covered under the written
contracts. The county surcharge on state tax shall be imposed on the gross
proceeds or gross income from all contracts entered into on or after June 30 of
the year prior to the taxable year in which the taxes become effective,
regardless of whether the contract allows for the passing on of any tax or any
tax increases.
(d) No county surcharge on state tax shall be
established on any:
(1) Gross income or gross proceeds taxable under this
chapter at the one-half per cent tax rate;
(2) Gross income or gross proceeds taxable under this
chapter at the 0.15 per cent tax rate; or
(3) Transactions, amounts, persons, gross income, or
gross proceeds exempt from tax under this chapter.
(e) The director of taxation shall revise the
general excise tax forms to provide for the clear and separate designation of
the imposition and payment of the county surcharge on state tax.
(f) The taxpayer shall designate the taxation
district to which the county surcharge on state tax is assigned in accordance
with rules adopted by the director of taxation under chapter 91. The taxpayer
shall file a schedule with the taxpayer's periodic and annual general excise
tax returns summarizing the amount of taxes assigned to each taxation district.
(g) The penalties provided by section 231-39
for failure to file a tax return shall be imposed on the amount of surcharge
due on the return being filed for the failure to file the schedule required to
accompany the return. In addition, there shall be added to the tax an amount
equal to ten per cent of the amount of the surcharge and tax due on the return
being filed for the failure to file the schedule or the failure to correctly
report the assignment of the general excise tax by taxation district on the
schedule required under this subsection.
(h) All taxpayers who file on a fiscal year
basis whose fiscal year ends after December 31 of the year prior to the taxable
year in which the taxes become effective, shall file a short period annual
return for the period preceding January 1 of the taxable year in which the
taxes become effective. Each fiscal year taxpayer shall also file a short
period annual return for the period starting on January 1 of the taxable year
in which the taxes become effective, and ending before January 1 of the
following year.