STAND. COM. REP. NO. 3520

Honolulu, Hawaii

RE: H.B. No. 487

H.D. 1

S.D. 3

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 487, H.D. 1, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to exempt fuel sold to common carrier airlines for use in inter-island or intra-island transportation from general excise and use taxes.

Your Committee notes that many airlines, including the two locally based inter-island carriers, are experiencing difficult financial times, in part due to the soaring costs of fuel. Sales of fuels sold from a foreign trade zone for use by airlines in interstate commerce are exempt from the State's general excise and use taxes. This measure will extend that exemption to fuel used in inter-island and intra-island transportation.

Your Committee has amended this measure by:

(1) Placing an unspecified limit on the amount of the exemption that a common carrier can claim in any taxable year;

(2) Changing the effective date of this measure to July 1, 2050, to facilitate further discussion on this measure; and

(3) Making technical nonsubstantive changes for the purposes of clarity and consistency.

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. 487, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 487, H.D. 1, S.D. 3.

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

____________________________

BRIAN T. TANIGUCHI, Chair