Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 72, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to make permanent the current exemption from the rental motor vehicle surcharge tax for vehicles that are rented to the lessor while a vehicle is being repaired.

Your Committee finds that the existing exemption from the rental motor vehicle surcharge tax will expire on August 31, 2007. The current surcharge of $3 per day will drop to $2 per day after that date. Your Committee finds that no revenue will be lost to the State in making this exemption permanent.

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. 72, S.D. 1, and recommends that it pass Third Reading.