Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 2768 entitled:

begs leave to report as follows:

The purpose of this short form measure is to amend the law relating to the aviation fuel tax.

Your Committee has amended this measure by replacing its contents with language to exempt from the general excise tax, use tax, and fuel taxes the aviation fuel used in intrastate air transportation and transportation between the State and the mainland.

Your Committee notes that there is no tax known as the "aviation fuel tax." This measure applies to the taxes that tax aviation fuel.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2768, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2768, S.D. 1, and be recommitted to the Committee on Transportation and Government Operations, for further consideration.