STAND. COM. REP. NO.  585

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1486

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1486 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE FUEL TAX,"

begs leave to report as follows:

The purpose of this measure is to change the assessment of the State Fuel Tax from a specified 17 cents per gallon to the greater of 17 cents per gallon or an unspecified percentage of the wholesale price per gallon to the retailer, subject to a minimum amount based upon the tax paid by certain retailers.

The Building Industry Association of Hawaii; Hawaii Petroleum, Inc.; and Aloha Petroleum, Ltd. submitted testimony in opposition to this measure.  The Tax Foundation of Hawaii, Department of Transportation, and Department of Taxation provided comments on this measure.

     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. 1486 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 Finance,

____________________________

SYLVIA LUKE, Chair