STAND. COM. REP. NO.  1811

 

Honolulu, Hawaii

                , 2007

 

RE:   S.B. No. 1133

      S.D. 3

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 1133, S.D. 3, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to:

 

     (1)  Increase the rental motor vehicle surcharge tax from $3 to $4 per day;

 

     (2)  Increase the tour vehicle surcharge tax; and

 

     (3)  Appropriate funds from the State Highway Fund.

 

     The Department of Transportation supported this bill with amendments.  The Hertz Corporation, Dollar Rent A Car, Enterprise Rent-A-Car, Hawaii Transportation Association, Robert's Tours and Transportation, Inc., Royal Star Hawaii, PHT, Inc., Paradise Cruise, Ltd., AVIS, Budget, and Catrala-Hawaii opposed this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

 


     Your Committee has amended this bill by:

 

     (1)  Reinstating the current tour vehicle surcharge taxes, instead of increasing them;

 

     (2)  Removing the appropriation from the State Highway Fund;

 

     (3)  Requiring the Legislative Reference Bureau to conduct a review of the State Highway Fund and report its findings to the Legislature 30 days prior to the convening of the Regular Session of 2008;

 

     (4)  Changing the effective date to July 1, 2020, to encourage further discussion; and

 

     (5)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1133, S.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1133, S.D. 3, H.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Finance,

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair