Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 390 entitled:

begs leave to report as follows:

The purpose of this bill is to assist the motor vehicle rental industry by repealing a temporary increase in the rental motor vehicle surcharge tax from $2.00 per day to $3.00 per day that was to occur between September 1, 1999, and August 31, 2007.

The Department of Transportation and the Department of Taxation testified in opposition to this bill. The Tax Foundation of Hawaii offered comments.

Your Committee has amended this bill by:

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 H.B. No. 390, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 390, H.D. 1.