HOUSE OF REPRESENTATIVES	H.R. NO.	240
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

HOUSE RESOLUTION

rEQUESTING THAT THE DEPARTMENT OF TAXATION UNDERTAKE A STUDY TO DETERMINE THE FEASIBILITY OF EXEMPTING FROM THE GENERAL EXCISE TAX IMPOSED UNDER CHAPTER 237, Hawaii Revised Statutes, LESS THAN CONTAINER LOAD SHIPPING TO THE ISLANDS OF THE COUNTY OF MAUI.

     WHEREAS, the County of Maui, unique among the counties making up the State, is comprised of three major inhabited islands, Maui, Molokai, and Lanai; and

     WHEREAS, the total populations of the County of Maui is approximately 128,000, with the populations of Molokai and Lanai being 8,000 and 3,200 persons, respectively; and

     WHEREAS, the only surface transportation for goods and commodities serving Molokai and Lanai from Honolulu and Maui are interisland barge service provided by Young Brothers, Limited; and

     WHEREAS, due to the relatively smaller size of the populations of Molokai and Lanai, the vast majority of shipments of goods and commodities to Molokai and Lanai is by less than container load consolidated shipping on pallets; and

     WHEREAS, while Molokai and Lanai are served by direct service from Honolulu, the only way to get freight from Maui to either Molokai or Lanai is by transshipment through Honolulu, which layover incurs additional State of Hawaii wharfage fees; and

     WHEREAS, the costs of shipping goods and commodities to Molokai and Lanai due to the less than container load sizes and handling requirements raises the costs of shipping all goods and commodities to Molokai and Lanai from Honolulu or from Maui; 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 Department of Taxation is requested to undertake a study, with cooperation from the Attorney General, Department of Transportation, Public Utilities Commission, and Young Brothers, Limited, on the feasibility of providing an exemption from the tax imposed by chapter 237, Hawaii Revised Statutes, for the shipments of all goods and commodities to the islands of Molokai and Lanai from Honolulu and Maui; and

     BE IT FURTHER RESOLVED that the study should consider but not be limited to the following:

     (1)  An estimate on the total amount of freight, goods, and commodities being shipped to the islands of Molokai and Lanai from each of Honolulu and Maui;

     (2)  An estimate of the loss in revenues that would result from this exemption;

     (3)  An estimate of the loss of revenues that would result if the additional wharfage fees charged for transshipments from Maui to Molokai and Lanai through Honolulu were waived; and

     (4)  Whether an exemption from the tax imposed by chapter 237, Hawaii Revised Statutes, for Molokai and Lanai, due to their relative populations and almost total reliance on less than container load shipping from both Honolulu and Maui would be deemed to be a special law and found to be unconstitutional under the Hawaii State Constitution; and

     BE IT FURTHER RESOLVED that the Attorney General, Department of Transportation, Public Utilities Commission, and Young Brothers, Limited, are requested to provide the Department of Taxation with any research, data, and other information required by the Department of Taxation to complete this study; and

     BE IT FURTHER RESOLVED that the Department of Taxation is requested to submit the findings and recommendations of its study, along with any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2010; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Taxation, Attorney General, Director of Transportation, Chairperson of the Public Utilities Commission, and Young Brothers, Limited.

OFFERED BY:

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Report Title: 

General Excise Tax; Maui County