Report Title:

Tax Exemption; New Fuel Efficient Vehicles

Description:

Exempts new fuel efficient vehicles from the county and state vehicular tax and the general excise tax. Provides a 10-year sunset provision. (SD1)

THE SENATE

S.B. NO.

1536

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO new fuel efficient vehicles.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii's total dependence upon imported oil challenges its citizens to choose more efficient means of transportation. Such a choice reduces pollution, the risks of an oil spill that would devastate the economy, and household costs. The legislature finds that making new technology more market competitive will help create a better future for its citizens.

The purpose of this Act is to exempt purchases of certain new fuel efficient vehicles from the county vehicular taxes and the general excise tax.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237- Exemptions for new fuel efficient vehicles. There shall be exempted from, and excluded from the measure of, the taxes imposed by this chapter all of the gross proceeds arising from the sale of new fuel efficient vehicles that have a fuel efficiency greater than fifty miles per gallon."

SECTION 3. Chapter 249, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"249- Exemptions for new fuel efficient vehicles. All new fuel efficient vehicles that have a fuel efficiency greater than fifty miles per gallon, otherwise taxable under sections 249-1 to 249-13, and 249-31 to 249-34, shall be exempt from the tax herein provided."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2003; provided that section 3 shall take effect on October 1, 2003; and provided further that this Act shall be repealed on July 1, 2013.