STAND. COM. REP. NO.  1226-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2501

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committees on Tourism & Culture and Economic Development & Business Concerns, to which was referred S.B. No. 2501, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE RENTAL MOTOR VEHICLE SURCHARGE TAX,"

beg leave to report as follows:

     The purpose of this bill is to support the State Highway Fund (Fund) and efforts to repair and maintain the state highway system by extending the assessment of the $3-per-day rental motor vehicle surcharge tax (Surcharge Tax) to August 31, 2009, after which the Surcharge Tax reverts to $2 per day.  In addition, this bill requires the Department of Transportation (DOT) to study the financial requirements of the Fund and submit a final report, including proposed legislation for increasing revenue sources for the Fund to meet its ongoing and future needs, prior to the convening of the Regular Session of 2009.

     The Department of Taxation and Catrala-Hawaii supported this bill.  DOT supported the intent of this measure.  The Tax Foundation of Hawaii submitted comments.

     As affirmed by the records of votes of the members of your Committees on Tourism & Culture and Economic Development & Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2501, S.D. 2, H.D. 1, and recommend that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Tourism & Culture and Economic Development & Business Concerns,

____________________________ KYLE T. YAMASHITA, Chair

____________________________ RYAN I. YAMANE, Chair