HB 657: RELATING TO DISABLED VETERANS.

A BILL FOR AN ACT

RELATING TO DISABLED VETERANS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that greater consistency is needed between the vehicle-based tax and fee exemptions offered to active-duty military members and the tax and fee exemptions offered to disabled veterans.  Accordingly, the purpose of this Act is to:

     (1)  Exempt disabled veterans from the State's vehicle weight tax; and

     (2)  Repeal the exemption for disabled veterans from the State's annual vehicle registration fee.

     SECTION 2.  Section 249-6.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§249-6.5[]]  Exemption for National Guard, military reserves, and other active duty military personnel, and for disabled veterans claiming Hawaii as their residence of record.  (a)  One noncommercial motor vehicle registered to [a]:

     (1)  A member of the National Guard, military reserve, or armed service, including the Coast Guard, who is:

    [(1)] (A)  Assigned to a unit in the State; and

    [(2)] (B)  A member in good standing[,]; or

     (2)  A disabled veteran;

shall be exempt from the vehicle weight tax provided for in this chapter.

     (b)  As used in this section, "disabled veteran" means a person who:

     (1)  Is a resident of Hawaii;

     (2)  Has served in, and been honorably discharged from, any branch of the United States armed forces; and

     (3)  Has been determined by the United States Department of Veterans Affairs or its predecessor to have a service‑connected disability rating of one hundred per cent."

     SECTION 3.  Section 249-31, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4[,] and 249-6[, and 249‑31.5], shall be subject to a $46 annual vehicle registration fee; provided that alternative fuel vehicles shall pay an annual vehicle registration surcharge of $50, which shall be assessed and collected beginning with the first registration renewal for every alternative fuel vehicle and shall be deposited into the state highway fund established under section 248-8.  The surcharge shall be paid each year together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51, and the state registration for that county shall likewise be staggered so that the state registration fee is due and payable at the same time and shall be collected together with the county fee.  The state registration fee shall be deemed delinquent if not paid with the county registration fee.  The respective counties shall collect this fee together with the vehicle registration tax collected for the county and shall transfer the moneys collected under this section to the State.

     For the purposes of this subsection, "alternative fuel vehicle" means a vehicle powered by a non-petroleum-based fuel, but excludes an electric vehicle as defined in section 249‑36(g)."

     SECTION 4.  Section 249-31.5, Hawaii Revised Statutes, is repealed.

     ["§249-31.5  Exemptions from registration fees for certain vehicles; disabled veterans.  (a)  A disabled veteran who:

     (1)  Is a resident of Hawaii;

     (2)  Has been other than dishonorably discharged from the United States uniformed armed forces; and

     (3)  Is determined by the United States Department of Veterans Affairs or its predecessor to have a service‑connected one hundred per cent disability rating for compensation or a service-connected disability rating of one hundred per cent,

shall be exempt from payment of all annual vehicle registration fees as required by section 249-31; provided that this exemption shall not extend to any vehicle used for commercial purposes or to more than one vehicle owned by the disabled veteran.

     (b)  The director of the office of veterans' services, in consultation with the policy advisory board on [veterans'] services, shall submit a report to the legislature and the department of taxation no later than twenty days prior to the convening of each regular session providing the legislature and the department of taxation with the total number of disabled veterans who qualify under this section for the exemption from annual vehicle registration fees."]

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 3000.

Report Title:

Vehicle Weight Tax; Annual Vehicle Registration Fee; Disabled Veterans; Exemption

Description:

Exempts disabled veterans from the State's vehicle weight tax and repeals the exemption for disabled veterans from the State's annual vehicle registration fee.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to disabled veterans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that greater consistency is needed between the vehicle-based tax and fee exemptions offered to active duty military members and the tax and fee exemptions offered to disabled veterans.  Accordingly, the purpose of this Act is to:

     (1)  Exempt disabled veterans from the State's vehicle weight tax; and

     (2)  Repeal the exemption for disabled veterans from the State's annual vehicle registration fee.

     SECTION 2.  Section 249-6.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§249-6.5[]]  Exemption for National Guard, military reserves, and other active duty military personnel, and for disabled veterans claiming Hawaii as their residence of record.  (a)  One noncommercial motor vehicle registered to [a]:

     (1)  A member of the National Guard, military reserve, or armed service, including the Coast Guard, who is:

    [(1)] (A)  Assigned to a unit in the State; and

    [(2)] (B)  A member in good standing[,]; or

     (2)  A disabled veteran;

shall be exempt from the vehicle weight tax provided for in this chapter.

     (b)  For purposes of this section, "disabled veteran" means a person who:

     (1)  Is a resident of Hawaii;

     (2)  Has served in, and been honorably discharged from, any branch of the United States armed forces; and

     (3)  Has been determined by the United States Department of Veterans Affairs or its predecessor to have a service‑connected disability rating of one hundred per cent."

     SECTION 3.  Section 249-31, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4[,] and 249-6[, and 249‑31.5], shall be subject to a $46 annual vehicle registration fee; provided that alternative fuel vehicles shall pay an annual vehicle registration surcharge of $50, which shall be assessed and collected beginning with the first registration renewal for every alternative fuel vehicle and shall be deposited into the state highway fund established under section 248-8.  The surcharge shall be paid each year together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51, and the state registration for that county shall likewise be staggered so that the state registration fee is due and payable at the same time and shall be collected together with the county fee.  The state registration fee shall be deemed delinquent if not paid with the county registration fee.  The respective counties shall collect this fee together with the vehicle registration tax collected for the county and shall transfer the moneys collected under this section to the State.

     For the purposes of this subsection, "alternative fuel vehicle" means a vehicle powered by a non-petroleum-based fuel, but excludes an electric vehicle as defined in section 249‑36(g)."

     SECTION 4.  Section 249-31.5, Hawaii Revised Statutes, is repealed.

     ["§249-31.5  Exemptions from registration fees for certain vehicles; disabled veterans.  (a)  A disabled veteran who:

     (1)  Is a resident of Hawaii;

     (2)  Has been other than dishonorably discharged from the United States uniformed armed forces; and

     (3)  Is determined by the United States Department of Veterans Affairs or its predecessor to have a service‑connected one hundred per cent disability rating for compensation or a service-connected disability rating of one hundred per cent,

shall be exempt from payment of all annual vehicle registration fees as required by section 249-31; provided that this exemption shall not extend to any vehicle used for commercial purposes or to more than one vehicle owned by the disabled veteran.

     (b)  The director of the office of veterans' services, in consultation with the policy advisory board on [veterans'] services, shall submit a report to the legislature and the department of taxation no later than twenty days prior to the convening of each regular session providing the legislature and the department of taxation with the total number of disabled veterans who qualify under this section for the exemption from annual vehicle registration fees."]

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2025.

Report Title:

Vehicle Weight Tax; Annual Vehicle Registration Fee; Disabled Veterans; Exemption

Description:

Exempts disabled veterans from the State's vehicle weight tax and repeals the exemption for disabled veterans from the State's annual vehicle registration fee.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  459

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 657

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committees on Public Safety and Transportation, to which was referred H.B. No. 657 entitled:

"A BILL FOR AN ACT RELATING TO DISABLED VETERANS,"

beg leave to report as follows:

     The purpose of this measure is to exempt disabled veterans from the State's vehicle weight tax and repeal the exemption for disabled veterans from the State's annual vehicle registration fee.

     Your Committees received testimony in support of this measure from the Veterans of Foreign Wars - Department of Hawaiʻi; Hawaii Military Affairs Council; Hawaii National Guard Enlisted Association; and five individuals.  Your Committees received comments on this measure from the Tax Foundation of Hawaii.

     Your Committees find that many disabled veterans in Hawaii live on fixed incomes yet face an ever-rising cost of living, which makes assistance through the reduction of a recurring financial burden particularly helpful.

     Your Committees have amended this measure by:

     (1)  Changing its effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Public Safety and Transportation that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 657, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 657, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Public Safety and Transportation,