STAND. COM. REP. NO. 1609

Honolulu, Hawaii

, 2005

RE: H.B. No. 390

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 390, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENTAL MOTOR VEHICLE SURCHARGE TAX,"

begs leave to report as follows:

The purpose of this measure is to make permanent the $2 a day rental motor vehicle surcharge tax at $2. Specifically, this measure repeals the increase in the tax to $3 a day that would otherwise be applicable to the time period from September 1, 1999 to August 31, 2007.

Furthermore, this measure makes permanent the tax exemption for a lessor who rents a vehicle to a lessee whose own vehicle is under repair. Specifically, this measure repeals the September 1, 1999 to August 31, 2007 time period limitation for the exemption.

Your Committee finds that under the current law the rental motor vehicle surcharge tax is $2 a day. However, for the period from September 1, 1999 to August 31, 2007, there are two modifications. First, the amount of the tax becomes $3 a day. Second, lessors who rent vehicles to lessees whose own vehicles are being repaired are exempt from the tax.

Your Committee has amended this measure by removing the repeal of the September 1, 1999 to August 31, 2007 time period for the $3 a day tax. In other words, your Committee has amended this measure by retaining the $3 a day rental motor vehicle surchage tax for that particular time period. Your Committee also deleted the purpose section, which no longer applies.

Accordingly, as amended, the purpose of this measure is to make permanent the exemption from the tax for lessors who lease vehicles to lessees whose own vehicles are under repair.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 390, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 390, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair