STAND. COM. REP. NO.  519

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 522

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 522, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENTAL CARS,"

begs leave to report as follows:

     The purpose of this measure is to exempt from the general excise tax amounts paid by car rental companies to a related entity for the lease of motor vehicles used in car rental operations.

     The Department of Taxation submitted comments on the measure.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 522, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair