STAND. COM. REP. NO. 272

Honolulu, Hawaii

, 2021

RE: H.B. No. 194

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 194 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to extend the period in which a county may adopt a surcharge on state tax, under certain conditions, from March 31, 2019, to June 30, 2022.

Your Committee received testimony in support of this measure from the Maui County Council. Your Committee received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Maui Chamber of Commerce.

Your Committee finds that existing law authorized counties to establish a county surcharge on state taxes in order to financially assist the counties with operating or capital costs of public transportation. However, not all counties were able to establish a surcharge by the mandated deadline and therefore are burdened with the operating and capital costs of public transportation. Your Committee believes that providing another opportunity to establish a county surcharge will alleviate and equalize any financial burden of certain public transportation costs.

Your Committee has amended this measure by changing its effective date to July 1, 2050, to encourage further discussion.

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. 194, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 194, 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