STAND. COM. REP. NO. 1248
RE: H.B. No. 1175
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fifth State Legislature
Regular Session of 2009
State of Hawaii
Your Committee on Ways and Means, to which was referred H.B. No. 1175, H.D. 3, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose of this measure is to increase the cigarette tax and to generate general fund revenues.
Specifically, this measure increases the per-cigarette tax to 20 cents beginning on July 1, 2009, and thereafter. Furthermore, this measure requires the deposit of unspecified percentages of the tax on cigarettes to the credit of the Hawaii tobacco prevention and control trust fund beginning on July 1, 2009.
Your Committee received ninety-one written comments on this measure. The written comments may be reviewed on the Legislature's website.
Your Committee finds this measure is a one-time tax increase that replaces the current yearly tax increases and ensures that the State has sufficient resources for tobacco prevention and control programs, by statutorily designating part of the cigarette tax to be deposited into the Hawaii tobacco prevention and control trust fund.
Upon further consideration, your Committee has amended this measure by:
(1) Changing the amount of the tax per cigarette beginning on July 1, 2009, to 13 cents; and
(2) Changing the effective date of the measure to July 1, 2050, to facilitate further discussion.
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. 1175, H.D. 3, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1175, H.D. 3, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONNA MERCADO KIM, Chair