County surcharge on state tax; administration
HRS §238-2.6
in effect238-2.6. County surcharge on state tax; administration
(a) The county surcharge on state tax, upon the adoption of a county ordinance and in accordance with the requirements of section 46-16.8, shall be levied, assessed, and collected as provided in this section on the value of property and services taxable under this chapter. No county shall set the surcharge on state tax at a rate greater than one-half per cent of the value of property 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 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 imports or purchases property and, in the case of a person importing or purchasing property in more than one county, the director shall determine, through apportionment or other means, that portion of the surcharge on state tax attributable to the importation or purchase in each county.
(b) Each county surcharge on state tax that
may be adopted, extended, or amended 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) No county surcharge on state tax shall be
established upon any use taxable under this chapter at the one-half per cent
tax rate or upon any use that is not subject to taxation or that is exempt from
taxation under this chapter.
(d) The director of taxation shall revise the
use tax forms to provide for the clear and separate designation of the
imposition and payment of the county surcharge on state tax.
(e) 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 use tax returns
summarizing the amount of taxes assigned to each taxation district.
(f) 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 use tax by taxation district on the schedule
required under this subsection.
(g) 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.
[L 2005, c 247, §§4, 9; am L 2015, c 240, §§6, 7; am L Sp 2017,
c 1, §4; am L 2018, c 11, §3 and c 183, §4; am L 2023, c 48, §4]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0238/HRS_0238-0002_0006.htmFetched: 11/10/2026