HOUSE OF REPRESENTATIVES	H.R. NO.	161
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

HOUSE RESOLUTION

requesting the legislative reference bureau to study the impact of levying the public utilities franchise tax on cable and telecommunications companies.

     WHEREAS, section 240-1, Hawaii Revised Statutes (HRS), levies a tax of two-and-one-half percent on the gross receipts from all electric power furnished to consumers by public utilities; and

     WHEREAS, although the public utilities franchise tax was established by state law, its receipts are transferred to the counties, which benefit from it; and

     WHEREAS, the amount of public utilities franchise tax revenues collected by the City and County of Honolulu (Honolulu) for fiscal year 2007-2008 exceeded $36 million; and

     WHEREAS, the public utilities franchise tax revenues are deposited into Honolulu's highway fund and used for repair and maintenance of city roadways; and

     WHEREAS, cable and telecommunications companies also use county easements and other property to transmit their services to customers; and

     WHEREAS, despite their use of county property, cable and telecommunications companies are not required to pay the public utilities franchise tax; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2009, that the Legislative Reference Bureau (LRB) is requested to study the impact of levying the public utilities franchise tax on cable and telecommunications companies; and

     BE IT FURTHER RESOLVED that LRB submit its study to the Legislature no later than 20 days prior to the convening of the Regular Session of 2010; and

     BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Director of LRB.

OFFERED BY:	_____________________________
	BY REQUEST

Report Title: 

Public utilities franchise tax on cable and telecommunications companies.