STAND. COM. REP. NO. 683

Honolulu, Hawaii

RE:    S.B. No. 1329

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1329 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE WEIGHT TAX,"

begs leave to report as follows:

     The purpose and intent of this measure is to improve the maintenance of the state highway system.

Specifically, the measure generates revenue to fund highway maintenance projects by increasing the state vehicle weight tax as follows:

     (1)  From 0.75 cent a pound to 1.75 cents a pound for vehicles up to and including four thousand pounds net weight;

     (2)  From 1.00 cent a pound to 2.00 cents a pound for vehicles over four thousand pounds and up to and including seven thousand pounds net weight;

     (3)  From 1.25 cents a pound to 2.25 cents a pound for vehicles over seven thousand pounds and up to and including ten thousand pounds net weight; and

     (4)  From a flat rate of $150 to a flat rate of $300 for vehicles over ten thousand pounds net weight.

This measure also appropriates an unspecified amount from the state highway fund for the operation and maintenance of the state highways program.

     Your Committee received comments in opposition to this measure from Gareth Sakakida, Managing Director, Hawaii Transportation Association; and Douglas Meller.

     Your Committee received comments on this measure from Gail Y. Haraguchi, Director, Department of Consumer Services, City and County of Honolulu; and the Tax Foundation of Hawaii.

     Your Committee finds that as more drivers take to the road and land development spreads to new areas of the State, additional funds are necessary to provide a safe, efficient, and effective state highways system.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

     (2)  Making technical nonsubstantive changes for style and consistency.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1329, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1329, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair