STAND. COM. REP. NO. 682

 

Honolulu, Hawaii

, 2011

 

RE: H.B. No. 273

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 Finance, to which was referred H.B. No. 273 entitled:

 

"A BILL FOR AN ACT RELATING TO TOBACCO PRODUCTS,"

 

begs leave to report as follows:

 

The purpose of this bill is to amend the tax on tobacco products, other than large cigars, sold by a wholesaler or dealer on or after July 1, 2011, to equal $3.20 for each tobacco product article or item sold.

 

The American Lung Association in Hawaii, American Cancer Society Hawaii Pacific Inc., Hawaii COPD Coalition, Healthy Mothers Healthy Babies, and Coalition for a Tobacco-Free Hawaii testified in support of the bill. The Department of Taxation, the Tax Foundation of Hawaii, University of Hawaii Cancer Center, and the American Heart Association submitted comments.

 

Your Committee has amended this bill by:

 

(1) Amending the amount of the excise tax on tobacco products to reflect an excise tax equal to the greater of 70 percent of the wholesale price of, or $3.20 for, each article or item of tobacco products, other than large cigars, sold by the wholesaler or dealer on and after July 1, 2011;

 

(2) Changing its effective date to July 1, 2030, to encourage further discussion; and

 

(3) Making a technical, nonsubstantive amendment for clarity, consistency, and style.

 

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 273, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 273, H.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

 

____________________________

MARCUS R. OSHIRO, Chair