STAND. COM. REP. NO.  71

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 551

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 551 entitled:

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

begs leave to report as follows:

The purpose of this measure is to prorate the rental motor vehicle surcharge tax down to 12.5 cents per hour on car-sharing rentals of less than six hours in duration.

     The Department of Transportation; EAN Holdings, LLC; Blue Planet Foundation; the Sierra Club, Hawai‘i Chapter; and two individuals supported this measure.  The Hertz Corporation supported the intent of this measure.  The Department of Taxation and Tax Foundation of Hawaii provided comments.

     Your Committee has amended this measure by:

(1)  Changing its effective date to July 1, 2020, to promote further discussion; and

(2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 551, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 551, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

RYAN I. YAMANE, Chair