STAND. COM. REP. NO.  1575-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2731

      S.D. 2

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2731, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A CAR-SHARING VEHICLE SURCHARGE TAX,"

begs leave to report as follows:

The purpose of this measure is to create a Car-sharing Vehicle Surcharge Tax by:

     (1)  Defining a Car-sharing Organization as a rental motor vehicle lessor that operates a membership program that includes set requirements;

     (2)  Assessing the Car-sharing Vehicle Surcharge Tax in a similar manner as the Rental Motor Vehicle and Tour Vehicle Surcharge Tax;

     (3)  Specifying that a Car-sharing Organization that is subject to the Car-sharing Vehicle Surcharge Tax will not also be subject to the Rental Motor Vehicle and Tour Vehicle Surcharge Tax; and

     (4)  Allowing for the passing on of the Car-sharing Vehicle Surcharge Tax to the payor-organization's members.

The Department of Transportation; Department of Planning and Permitting City and County of Honolulu; EAN Holdings, LLC; Hawaii Energy Policy Forum; Ulupono Initiative; Car2go; and the Pacific Resource Partnership supported this measure.  The Department of Taxation; Department of Health; Office of Planning; Blue Planet Foundation; and Tax Foundation of Hawaii commented on this measure.  

     Your Committee has amended this measure by making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2731, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2731, S.D. 2, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair