Honolulu, Hawaii



RE:    S.B. No. 2131

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii




     Your Committee on Ways and Means, to which was referred S.B. No. 2131, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to restore the fuel license tax on naphtha fuels sold for use in a power generating facility.


     Your Committee received written comments in support of this measure from the Kauai Island Utility Cooperative.


     Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.


     Your Committee finds that, in 2007, the Legislature enacted a fuel license tax on naphtha fuels sold to a power generating facility.  Prior to its repeal, the tax was set at two cents per gallon.  However, pursuant to Act 103, Session Laws of Hawaii 2007, as amended by Act 198, Session Laws of Hawaii 2009, as amended by Act 188, Session Laws of Hawaii 2012, the tax was repealed on December 31, 2015.  Your Committee further finds that it is the intent of this measure to restore the fuel license tax of two cents per gallon for naphtha fuels sold to a power generating facility.  This measure has the effect of lowering the tax on such naphtha fuel.


     Your Committee has amended this measure by:


     (1)  Making corrections to accurately reflect the text of section 243-4(a), Hawaii Revised Statutes; and


     (2)  Making technical nonsubstantive amendments for the purposes of consistency, clarity, and style.


     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. 2131, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2131, S.D. 2.


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