§243-4  License taxes.  (a)  [Repealand reenactment on December 31, 2012.  L 2009, c 198, §3.]  Everydistributor, in addition to any other taxes provided by law, shall pay alicense tax to the department of taxation for each gallon of liquid fuel refined,manufactured, produced, or compounded by the distributor and sold or used bythe distributor in the State or imported by the distributor, or acquired by thedistributor from persons who are not licensed distributors, and sold or used bythe distributor in the State.  Any person who sells or uses any liquid fuel,knowing that the distributor from whom it was originally purchased has not paidand is not paying the tax thereon, shall pay such tax as would have applied tosuch sale or use by the distributor.  The rates of tax imposed are as follows:

(1)  For each gallon of diesel oil, 2 cents;

(2)  For each gallon of gasoline or other aviationfuel sold for use in or used for airplanes, 2 cents;

(3)  For each gallon of naphtha sold for use in apower-generating facility, 2 cents;

(4)  For each gallon of liquid fuel, other than fuelmentioned in paragraphs (1), (2), and (3), and other than an alternative fuel,sold or used in the city and county of Honolulu, or sold in any county forultimate use in the city and county of Honolulu, 17 cents state tax, and inaddition thereto an amount, to be known as the "city and county ofHonolulu fuel tax", as shall be levied pursuant to section 243-5;

(5)  For each gallon of liquid fuel, other than fuelmentioned in paragraphs (1), (2), and (3), and other than an alternative fuel,sold or used in the county of Hawaii, or sold in any county for ultimate use inthe county of Hawaii, 17 cents state tax, and in addition thereto an amount, tobe known as the "county of Hawaii fuel tax", as shall be leviedpursuant to section 243-5;

(6)  For each gallon of liquid fuel, other than fuelmentioned in paragraphs (1), (2), and (3), and other than an alternative fuel,sold or used in the county of Maui, or sold in any county for ultimate use inthe county of Maui, 17 cents state tax, and in addition thereto an amount, tobe known as the "county of Maui fuel tax", as shall be leviedpursuant to section 243-5; and

(7)  For each gallon of liquid fuel, other than fuelmentioned in paragraphs (1), (2), and (3), and other than an alternative fuel,sold or used in the county of Kauai, or sold in any county for ultimate use inthe county of Kauai, 17 cents state tax, and in addition thereto an amount, tobe known as the "county of Kauai fuel tax", as shall be leviedpursuant to section 243-5.

If it is shown to the satisfaction of thedepartment, based upon proper records and from any other evidence as thedepartment may require, that liquid fuel, other than fuel mentioned inparagraphs (1), (2), and (3), is used for agricultural equipment that does notoperate upon the public highways of the State, the user thereof may obtain arefund of all taxes thereon imposed by this section in excess of 1 cent pergallon.  The department shall adopt rules to administer such refunds.

(b)  Every distributor of diesel oil, inaddition to the tax required by subsection (a), shall pay a license tax to thedepartment for each gallon of diesel oil sold or used by the distributor foroperating a motor vehicle or motor vehicles upon public highways of the State. The rates of the additional tax imposed are as follows:

(1)  For each gallon of diesel oil sold or used in thecity and county of Honolulu, or sold in any other county for ultimate use inthe city and county of Honolulu, 15 cents state tax, and in addition thereto anamount, to be known as the "city and county of Honolulu fuel tax", asshall be levied pursuant to section 243-5;

(2)  For each gallon of diesel oil sold or used in thecounty of Hawaii, or sold in any other county for ultimate use in the county ofHawaii, 15 cents state tax, and in addition thereto an amount, to be known asthe "county of Hawaii fuel tax", as shall be levied pursuant tosection 243-5;

(3)  For each gallon of diesel oil sold or used in thecounty of Maui, or sold in any other county for ultimate use in the county ofMaui, 15 cents state tax, and in addition thereto an amount, to be known as the"county of Maui fuel tax", as shall be levied pursuant to section243-5; and

(4)  For each gallon of diesel oil sold or used in thecounty of Kauai, or sold in any other county for ultimate use in the county ofKauai, 15 cents state tax, and in addition thereto an amount, to be known asthe "county of Kauai fuel tax", as shall be levied pursuant tosection 243-5.

If any user of diesel oil furnishes acertificate, in a form that the department shall prescribe, to the distributoror if the distributor who uses diesel oil signs the certificate, certifyingthat the diesel oil is for use in operating a motor vehicle or motor vehiclesin areas other than upon the public highways of the State, the tax as providedin paragraphs (1) to (4) shall not be applicable.  If a certificate is not orcannot be furnished and the diesel oil is in fact for use for operating a motorvehicle or motor vehicles in areas other than upon public highways of theState, the user thereof may obtain a refund of all taxes thereon imposed by theforegoing paragraphs.  The department shall adopt rules to administer therefunding of such taxes.

(c)  The tax shall not be collected in respectto any benzol, benzene, toluol, xylol, or alternative fuel sold for use otherthan for operating internal combustion engines.  With respect to theseproducts, other than alternative fuels, the department, by rule, shall providefor the reporting and payment of the tax and for the keeping of records in sucha manner as to collect, for each gallon of each product sold for use ininternal combustion engines for the generation of power, or so used, the sametax or taxes as apply to each gallon of diesel oil.  With respect toalternative fuels, the only tax collected shall be that provided in paragraphs(1), (2), and (3) of this subsection.  This subsection shall not apply toaviation fuel sold for use in or used for airplanes.

(1)  Every distributor of any alternative fuel foroperation of an internal combustion engine shall pay a license tax to thedepartment of one-quarter of 1 cent for each gallon of alternative fuel sold orused by the distributor;

(2)  Every distributor, in addition to the taxrequired under paragraph (1) of this subsection, shall pay a license tax to thedepartment for each gallon of alternative fuel sold or used by the distributorfor operating a motor vehicle or motor vehicles upon the public highways of theState at a rate proportional to that of the rates applicable to diesel oil insubsection (b), rounded to the nearest one-tenth of a cent, as follows:

(A)  Ethanol, 0.145 times the rate for diesel;

(B)  Methanol, 0.11 times the rate for diesel;

(C)  Biodiesel, 0.25 times the rate for diesel;

(D)  Liquefied petroleum gas, 0.33 times therate for diesel; and

(E)  For other alternative fuels, the rateshall be based on the energy content of the fuels as compared to diesel fuel,using a lower heating value of one hundred thirty thousand British thermalunits per gallon as a standard for diesel, so that the tax rate, on an energycontent basis, is equal to one-quarter the rate for diesel fuel.

The taxes so paid shall be paid into thestate treasury and deposited in special funds or paid over in the same manneras provided in subsection (b) in respect of the tax on diesel oil;

(3)  If any user of alternative fuel furnishes to thedistributor a certificate, in a form that the department shall prescribe or ifthe distributor who uses alternative fuel signs the certificate, certifyingthat the alternative fuel is for use in operating a motor vehicle or motorvehicles in areas other than upon the public highways of the State, the tax asprovided by paragraphs (1) and (2) of this subsection shall not be applicable;provided that no certificate shall be required if the alternative fuel is usedfor fuel and heating purposes in the home.  If a certificate is not or cannotbe furnished and the alternative fuel is in fact used for operating an internalcombustion engine or operating a motor vehicle or motor vehicles in areas otherthan upon the public highways of the State, the user thereof may obtain arefund of all taxes thereon imposed by the foregoing paragraphs.  Thedepartment shall adopt rules to administer the refunding of these taxes.

(d)  No tax shall be collected in respect toany liquid fuel, including diesel oil and liquefied petroleum gas, shown to thesatisfaction of the department to have been sold for use in and actuallydelivered to, or sold in, the county of Kalawao. [L 1932 1st, c 19, §4; am L1933, c 133, §2; am L 1937, c 189, §1; am L 1939, c 254, §1; am L Sp 1941, c26, pt of §1; RL 1945, §5404; am L 1947, c 196, §2; am L 1949, c 360, §4; am L1951, c 187, §2 and c 302, §1; am L 1953, cc 20, 197, 198, and 213, §1; am L1955, cc 147, 148, 181, §1 and c 250, §2; RL 1955, §123-3; am L 1957, c 217,§2; am L Sp 1959 2d, c 1, §16; am L 1962, c 23, §1; HRS §243-4; am L 1969, c 215,§1; am L 1970, c 69, §1 and c 180, §18; am L 1971, c 51, §§1 and 2; am L 1977,c 195, §2; am L 1985, c 239, §4; gen ch 1985; am L 1986, c 54, §1; am L 1991, c263, §11; am L 2001, c 143, §3; am L 2004, c 96, §2; am L 2005, c 22, §5; am L2007, c 103, §§3, 5(1) and c 209, §3; am L 2009, c 198, §2]