STAND. COM. REP. NO. 2481
RE: S.B. No. 2140
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2140 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose and intent of this measure is to extend the period during which a county may adopt an ordinance to establish a surcharge on state tax.
Your Committee received testimony in support of this measure from the Mayor of the County of Hawaii, Mayor of the County of Kauai, Mayor of the County of Maui, Maui County Council, Department of Public Works of the County of Maui, Department of Transportation of the County of Maui, Maui Metropolitan Planning Organization Policy Board, and three members of the Maui County Council.
Your Committee received comments on this measure from the Department of Taxation, Maui Chamber of Commerce, and Tax Foundation of Hawaii.
Your Committee finds that section 46-16.8(c), Hawaii Revised Statutes, authorizes counties to establish a surcharge on the state general excise and use taxes by adopting an ordinance prior to March 31, 2019. Your Committee further finds that this measure extends the period in which a county may adopt such an ordinance until June 30, 2021, and this extra time will provide counties with an opportunity to plan for updates to transportation projects and transportation infrastructure repairs.
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 S.B. No. 2140 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DONOVAN M. DELA CRUZ, Chair