Exempts county mass transit buses from the state fuel tax. (HB2506 HD1)

A BILL FOR AN ACT

SECTION 1. Section 243-7, Hawaii Revised Statutes, is amended to read as follows:

"§243-7 Tax not applicable, when. (a) This chapter requiring the payment of license fees shall not be held or construed to apply to fuel imported into the State in interstate or foreign commerce while and so long as [such] the fuel is beyond the taxing power of the State, nor to any [such] fuel exported or sold to the government of the United States or any department thereof for official use of the government, nor to any fuel exported or sold to another licensed distributor; [but] provided that every distributor shall be required to report [such] any imports, exports, and sales as provided by this chapter and in such detail as the department of taxation shall require.

(b) There shall be exempted and excluded from the measure of the taxes imposed by this chapter, all sales of liquid fuel used by vehicles operated by "county transportation systems" as defined in section 237-24.7(2)."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval; provided that this Act shall be repealed on July 1, 2016.