STAND. COM. REP. NO. 294

Honolulu, Hawaii

, 2005

RE: S.B. No. 72

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Housing and Transportation and Government Operations, to which was referred S.B. No. 72 entitled:

"A BILL FOR AN ACT RELATING TO RENTAL MOTOR VEHICLE AND TOUR VEHICLE SURCHARGE TAX,"

beg leave to report as follows:

The purpose of this measure is to make permanent the exemption from the rental motor vehicle surcharge tax for vehicles being rented to replace a vehicle under repair.

The Department of Transportation testified in support of the measure. The Department of Taxation presented comments on the measure.

Current law establishes a daily surcharge tax against a lessor on the rental of a motor vehicle. The law also provides that during an eight-year period that ends on August 31, 2007, no surcharge shall be assessed on a vehicle that is being rented by the lessor to replace a vehicle of the lessee that is under repair, subject to the lessor's retention of the repair order for four years for verification purposes.

This measure makes the exemption permanent by repealing its sunset date. Your Committees find that this measure will not result in a revenue loss to the State.

Your Committees have amended this measure to correctly reflect the language of the Hawaii Revised Statutes.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection, and Housing and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 72, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 72, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Housing and Transportation and Government Operations,

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LORRAINE R. INOUYE, Chair

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RON MENOR, Chair