STAND. COM. REP. NO.923

Honolulu, Hawaii

, 2001

RE: S.B. No. 751

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 751 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to allow interisland air carriers using certified quieter aircraft under an operating lease to claim a tax credit of two per cent of the lease rent paid to the lessor.

Your Committee recognizes that there is a large business and residential community surrounding the airport. Your Committee further understands that with increased interisland flights, come increased noise from the aircraft. Your Committee thus believes that there is a state interest to encourage airlines to use the newer, quieter aircraft. This measure will encourage airlines to lease quieter aircraft, and allow them to do so without passing on the additional cost to consumers.

Your Committee has amended this measure by leaving the percentage of the credit blank, and making technical, nonsubstantive amendments.

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. 751, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 751, S.D. 1.

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

____________________________

BRIAN T. TANIGUCHI, Chair