Report Title:

Low Emission and Energy-Efficient Vehicles; Exemption from General Excise Tax

Description:

Exempts the proceeds of low emission and energy-efficient vehicle sales from the general excise tax.

HOUSE OF REPRESENTATIVES

H.B. NO.

2020

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to taxation of low emission and energy-efficient vehicles.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237-A Exemption of sale of low emission and energy-efficient vehicles. (a) There shall be exempted from and excluded from the measure of taxes imposed by this chapter all of the gross proceeds arising from the sale of low emission and energy-efficient vehicles in the State.

(b) As used in this section, "low emission and energy-efficient vehicles" means a vehicle that:

(1) Is powered primarily through the use of an electric battery or battery pack that stores energy produced by an electric motor through regenerative braking to assist in vehicle operation;

(2) Is propelled by power derived from one or more cells converting chemical energy directly into electricity by combining oxygen with hydrogen fuel that is stored on board the vehicle in any form; or

(3) Draws propulsion energy from onboard sources of stored energy generated from an internal combustion or heat engine using combustible fuel and a rechargeable energy storage system.

(c) The director of taxation shall adopt rules pursuant to chapter 91 necessary to administer this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.

 

INTRODUCED BY:

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