HI HB460

Authorizes each county to establish a county water infrastructure surcharge on state general excise tax and use tax at a rate not exceeding one-half of one percent, effective no earlier than January 1, 2012.

Requires counties to adopt the surcharge by ordinance and conduct a public hearing with notice published in a newspaper of general circulation at least twice within 30 days before the hearing.

Directs the state director of taxation to levy, assess, collect, and administer the surcharge, with the state retaining a percentage of proceeds to cover administrative costs before distributing remaining funds quarterly to counties.

Restricts the surcharge from applying to transactions taxed at the one-half percent rate, transactions at the 0.15 percent rate, or exempt transactions under state tax law.

Requires counties to use surcharge revenues exclusively for water infrastructure including reclaimed water, wastewater, and drainage improvements.