STAND. COM. REP. NO. 346-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1930

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 1930 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to raise the rental motor vehicle surcharge tax from $5 to $8 per day.

Your Committee received testimony in support of this measure from the Department of Transportation, Office of the Mayor of the County of Maui, Department of Transportation of the County of Maui, Maui Metropolitan Planning Organization, Maui Chamber of Commerce, and Hawaii Bicycling League. Your Committee received testimony in opposition to this measure from Avis Budget Group and Enterprise Holdings. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that the increase in revenues generated by this measure will provide transportation infrastructural improvements for all users, including pedestrians, mass transit passengers, bicyclists, and motorists and will help the Department of Transportation provide state matching funds for the highways federal aid program.

Your Committee has amended this measure by:

(1) Making the amount of the rental motor vehicle surcharge tax an unspecified amount;

(2) Changing its effective date to July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

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. 1930, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1930, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

HENRY J.C. AQUINO, Chair