STAND. COM. REP. NO.  132

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 1102

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Transportation, to which was referred H.B. No. 1102 entitled:

 

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE WEIGHT TAX,"

 

begs leave to report as follows:

 

     The purpose of this bill is to improve the Department of Transportation's (DOT) ability to construct, operate, and maintain the State Highway System and maintain the solvency of the State Highway Fund by increasing the State vehicle weight tax.

 

     DOT, the Department of Taxation, and the City and County of Honolulu testified in support of this bill.  The Hawaii Transportation Association and a concerned individual testified in opposition to this measure.  The Tax Foundation of Hawaii provided comments.

 

     Currently, DOT estimates the costs of the routine operation and maintenance of Hawaii's highway system, which consists of over 2,400 lane miles of roadway, to be $115,000,000 annually.  With the downturn in both the national and State economies over the last several years, State Highway Fund monies have continued to be negatively impacted, with revenues failing to keep pace with expenditures for the operation, maintenance, and construction of State highways.  As a result, our land transportation system has failed to address increased transportation demands with project needs far outpacing available resources.  Although recent indicators have suggested that economic recovery is beginning, expectations are that the economic recovery will be slow and may take several years.  Without additional funding, the State Highway Fund will lack the necessary revenues for even routine maintenance and operation of our roadways, let alone the construction of new and necessary roadways and appurtenances.

 

     Your Committee finds that the increase in the vehicle weight tax proposed in this measure will generate an additional $32.9 million in revenues for the State Highway Fund and will continue to allow DOT to provide a safe, efficient, and effective land transportation system for the movement of people and goods serving a benefit to both residents and visitors alike.

 

     However, concerns were raised by the City and County of Honolulu that additional time will be needed to upgrade computer programs used for the registration of motor vehicles to address this rate increase.  Accordingly, your Committee has amended this bill by changing the effective date to December 1, 2011, to provide the City and County of Honolulu with additional time.

 

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1102, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1102, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

 

 

 

____________________________

JOSEPH M. SOUKI, Chair