STAND. COM. REP. NO. 2602

Honolulu, Hawaii

RE:    S.B. No. 2986

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2986 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to make permanent the provisions of Act 103, Session Laws of Hawaii 2007, as amended by Act 198, Session Laws of Hawaii 2009, the taxation rate for naphtha, a liquid fuel that is sold for use in electric power generation.

     Written comments in support of this measure were submitted by Kauai Island Utility Cooperative.

     Your Committee finds that the provisions of Act 103, Session Laws of Hawaii 2007, as amended by Act 198, Session Laws of Hawaii 2009, have helped to stabilize energy costs and is in the best interest of the public.

     Your Committee, after further consideration, has instead amended this measure by extending the repeal date of the taxation rate for naphtha from December 31, 2012, to December 31, 2017.

     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. 2986, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2986, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair