Honolulu, Hawaii



RE:    H.B. No. 2605

       H.D. 2

       S.D. 1




Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 2605, H.D. 2, entitled:




begs leave to report as follows:


     The purpose of this measure is to recognize the service and dedication of members of the National Guard and Reserves by providing to them the same exemption of motor vehicle weight taxes and fees as received by their active duty counterparts. 


Specifically, the measure exempts all members in good standing of the National Guard, reserves, or armed services, including the Coast Guard, from county vehicular taxes and fees for their privately owned vehicles.


     Testimony in support of the measure was received from the Department of Defense, the Department of Taxation, the City and County of Honolulu, the Chamber of Commerce of Hawaii, twelve members of the Hawaii National Guard Enlisted Association, two members of the Hawaii National Guard Association, and seven private citizens.  The Tax Foundation submitted comments.


     Your Committee finds that this exemption indicates to the members of the Guard and Reserves, especially those that recently returned from Iraq and Afghanistan, that Hawaii truly cares and supports their service to the State and nation.  Your Committee also recognizes that benefits like this exemption help influence our highly trained and experienced service members to remain in the Guard and Reserve and also assists in recruiting new members.


Upon further consideration, your Committee has amended this measure by:


     (1)  Deleting the exemption for registration fees;


     (2)  Restricting the vehicle weight tax exemption to one noncommercial motor vehicle (rather than an unlimited number) per member;


     (3)  Changing the effective date to October 1, 2008 rather than October 1, 2020; and


     (4)  Making a technical nonsubstantive amendment for purposes of consistency and clarity.


     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 H.B. No. 2605, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2605, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.


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