County surcharge on state tax
HRS §46-16.8
in effect46-16.8. County surcharge on state tax
[Section repealed December 31, 2030. L Sp 2017, c 1, §6.] (a) Each county may establish a surcharge on state tax at the rates enumerated in sections 237-8.6 and 238-2.6. A county electing to establish this surcharge shall do so by ordinance; provided that:
(1) No ordinance shall be adopted until the county
has conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted before December
31, 2005; and
(3) No county surcharge on state tax that may be
authorized under this subsection shall be levied before January 1, 2007, or
after December 31, 2022, unless extended pursuant to subsection (b).
Notice of the public hearing required under
paragraph (1) shall be published in a newspaper of general circulation within
the county at least twice within a period of thirty days immediately preceding
the date of the hearing.
A county electing to exercise the authority
granted under this subsection shall notify the director of taxation within ten
days after the county has adopted a surcharge on state tax ordinance and,
beginning no earlier than January 1, 2007, the director of taxation shall levy,
assess, collect, and otherwise administer the county surcharge on state tax.
(b) Each county that has established a
surcharge on state tax before July 1, 2015, under authority of subsection (a)
may extend the surcharge until December 31, 2030, at the same rates. A county
electing to extend this surcharge shall do so by ordinance; provided that:
(1) No ordinance shall be adopted until the county
has conducted a public hearing on the proposed ordinance; and
(2) The ordinance shall be adopted before January 1,
2018.
A county electing to exercise the authority
granted under this subsection shall notify the director of taxation within ten
days after the county has adopted an ordinance extending the surcharge on state
tax. The director of taxation shall levy, assess, collect, and otherwise
administer the extended surcharge on state tax.
(c) Each county that has not established a
surcharge pursuant to subsection (a) on state tax before July 1, 2015, may
establish the surcharge at the rates enumerated in sections 237-8.6 and
238-2.6. A county electing to establish this surcharge shall do so by
ordinance; provided that:
(1) No ordinance shall be adopted until the county
has conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted before December
31, 2023; and
(3) No county surcharge on state tax that may be
authorized under this subsection shall be levied before January 1, 2019, or
after December 31, 2030.
A county electing to exercise the authority
granted under this subsection shall notify the director of taxation within ten
days after the county has adopted a surcharge on state tax ordinance.
Beginning on January 1, 2019, January 1, 2020, January 1, 2024, or January 1,
2025, as applicable pursuant to sections 237-8.6 and 238-2.6, the director of
taxation shall levy, assess, collect, and otherwise administer the county
surcharge on state tax.
(d) Each county that has established a
surcharge on state tax before March 31, 2019, under subsection (a) or (c) may
amend the surcharge ordinance to change the authorized uses of surcharge
revenues, pursuant to subsection (g); provided that:
(1) No ordinance shall be amended pursuant to this
section until the county has conducted a public hearing on the proposed
amendment; and
(2) The ordinance shall be amended before December
31, 2023.
(e) Notice of the public hearing required
under subsection (b), (c), or (d), before adoption or amendment of an ordinance
establishing or extending the surcharge on state tax shall be published in a
newspaper of general circulation within the county at least twice within a
period of thirty days immediately preceding the date of the hearing.
(f) Each county with a population greater than
five hundred thousand that adopts or extends a county surcharge on state tax
ordinance pursuant to subsection (a) or (b) shall use the surcharge revenues
received from the State for capital costs of a locally preferred alternative
for a mass transit project; provided that revenues derived from the county
surcharge on state tax shall not be used:
(1) To build or repair public roads or highways,
bicycle paths, or support public transportation systems already in existence
before July 12, 2005;
(2) For operating costs or maintenance costs of the
mass transit project or any purpose not consistent with this subsection; or
(3) For administrative or operating, marketing, or
maintenance costs, including personnel costs, of a rapid transportation
authority charged with the responsibility for constructing, operating, or
maintaining the mass transit project;
provided further that nothing in this section shall
be construed to prohibit a county from using county funds that are not derived
from a surcharge on state tax for a purpose described in paragraph (2) or (3).
(g) Each county having a population equal to
or less than five hundred thousand that adopts a county surcharge on state tax
ordinance pursuant to this section shall use the surcharges received from the
State for:
(1) Operating or capital costs of public
transportation within each county for public transportation systems, including:
(A) Public roadways or highways;
(B) Public buses;
(C) Trains;
(D) Ferries;
(E) Pedestrian paths or sidewalks; or
(F) Bicycle paths;
(2) Expenses in complying with the Americans with
Disabilities Act of 1990 with respect to paragraph (1); and
(3) Housing infrastructure costs; provided that a
county that uses surcharge revenues for housing infrastructure shall not pass
on those housing infrastructure costs to the developer of a housing project;
provided further that this paragraph shall apply only if a county amended its
surcharge ordinance pursuant to subsection (d) or adopts a county surcharge on
state tax ordinance after December 31, 2022;
provided that each county having a population equal
to or less than five hundred thousand that adopts a county surcharge on state
tax ordinance pursuant to this section after December 31, 2022, shall use the
surcharge revenues received from the State only for the purposes described in
paragraph (3) for county-appropriated housing infrastructure costs.
(h) As used in this section:
"Capital costs" means nonrecurring
costs required to construct a transit facility or system, including debt
service, costs of land acquisition and development, acquiring of rights-of-way,
planning, design, and construction, and including equipping and furnishing the
facility or system. For a county with a population greater than five hundred
thousand, capital costs also include non-recurring personal services and other
overhead costs that are not intended to continue after completion of construction
of the minimum operable segment of the locally preferred alternative for a mass
transit project.
"Housing infrastructure costs"
includes pedestrian paths or sidewalks on a county road near or around a public
school, and water, drainage, sewer, water reuse, waste disposal, and waste
treatment systems that connect to the infrastructure of the county and shall
include financing costs, including any related debt service and financing
agreement costs.
[L 2005, c 247, §§2, 9; am L 2015, c 240, §§3, 7; am L Sp 2017,
c 1, §§2, 7; am L 2018, c 11, §1; am L 2023, c 48, §2; am L 2024, c 30, §1]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0046/HRS_0046-0016_0008.htmFetched: 11/10/2026