STAND. COM. REP. NO. 3048

Honolulu, Hawaii

RE: S.B. No. 2687

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2687, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to raise revenue for necessary capital improvement projects on highways in certain counties of the State.

More specifically, this measure:

(1) Increases to $8 per day the rental motor vehicle surcharge tax in any county having a resident population of more than 125,000, but less than 195,000;

(2) Allocates $3 of the $8 per day increase of the rental motor vehicle surcharge tax required by this measure for deposit into the impacted county's subaccount within the state highway fund; and

(3) Specifies that for the County of Maui, the moneys collected pursuant to this measure for deposit into the County of Maui's subaccount within the state highway fund shall be directed first toward the Honoapiilani Highway realignment project before those funds may be expended for any other project.

Your Committee received written comments in support of this measure from the Office of the Mayor, County of Maui; Department of Transportation, County of Maui; a member of the Maui County Council; Maui Metropolitan Planning Organization Policy Board; West Maui Taxpayers Association, Inc.; Maui Chamber of Commerce; Maui Bicycle League; and three individuals.

Your Committee received written comments in opposition to this measure from the Avis Budget Group and Enterprise Holdings.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that this measure will raise needed revenue to fund capital improvement projects on highways in the State that will relieve traffic congestion and improve the quality of life of Hawaii's residents and visitors.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

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. 2687, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2687, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair