STAND. COM. REP. NO.  907-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2860

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2860, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to exempt from the general excise and use taxes, the sale of aviation fuel that is purchased in a foreign-trade zone and used by a common carrier for intrastate air travel.

     The Chamber of Commerce of Hawaii, Hawaiian Airlines, Aloha Airlines, March of Dimes-Hawaii Chapter, International Association of Machinists and Aerospace Workers District 141, Transport Workers Union, and Aloha Airlines Pilots' Union supported this bill.  The Department of Taxation, Department of Business, Economic Development, and Tourism, and Tax Foundation of Hawaii submitted comments.

     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. 2860, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair