HI HB460

Authorizes each county to levy a one-half per cent surcharge on state general excise tax and use tax for water infrastructure, including reclaimed water, wastewater, and drainage systems.

Requires counties to adopt the surcharge by ordinance following a public hearing, with notice published at least twice within 30 days before the hearing.

Surcharge cannot be levied before January 1, 2012, and the state director of taxation administers collection and distribution to counties after deducting up to 10% for state administration costs.

Surcharge applies only to transactions subject to standard tax rates and excludes transactions taxed at reduced rates (0.15% or 0.5%) and tax-exempt transactions.

Amends motor vehicle rental law to allow lessors to separately pass the county water infrastructure surcharge to lessees, similar to existing surcharge pass-through provisions.