STAND. COM. REP. NO. 290

Honolulu, Hawaii

RE:    S.B. No. 359

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Transportation and Energy and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 359 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

beg leave to report as follows:

     The purpose and intent of this measure is to require drivers of taxicabs and transportation network drivers to display the general excise tax license inside their cars.

     Your Committees received testimony in support of this measure from Charley's Taxi.  Your Committees received testimony in opposition to this measure from Uber Technologies, Inc.  Your Committees received comments on this measure from Department of Taxation and Tax Foundation of Hawaii.

     Your Committees find that while taxi companies are required to operate under a litany of regulations, transportation network company drivers have not bothered to comply with the most basic laws related to the legally required payment of the general excise tax.  Requiring drivers to display the general excise tax license in a car encourages compliance with tax laws.

     As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 359 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ LORRAINE R. INOUYE, Chair