Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1198, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to effectuate an agreement entered into by the State of Hawaii, the counties, and a number of public service companies by providing for a sharing of the public service company tax revenues with those counties that establish by ordinance an exemption from real property tax for public service companies.

Your Committee finds that the public service company tax was originally instituted in 1932 in lieu of the real property taxes, when the territory and later the State had control of real property taxes. In 1978, the real property tax function and power was transferred to the counties, however, the public service company tax was retained by the State.

This measure will provide counties with a share of the public service company tax.

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 S.B. No. 1198, S.D. 1, and recommends that it pass Third Reading.