STAND. COM. REP. NO. 202

Honolulu, Hawaii

, 2021

RE: H.B. No. 485

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 485 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to increase the rental motor vehicle surcharge tax from $5 to $8 beginning January 1, 2023.

Your Committee received testimony in support of this measure from the Department of Transportation. Your Committee received testimony in opposition to this measure from the Avis Budget Group and Enterprise Holdings. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that rental motor vehicles make up a large proportion of public highway users, causing wear and tear on the State's roads. Your Committee believes that as the proportion of rental motor vehicles increases on the State's roadways, there must be an equal financial increase to offset the damage done to the State's roads. This measure will provide safer infrastructure enhancements for all users of the State's roads by increasing the amount of the rental motor vehicle surcharge.

Your Committee has amended this measure by:

(1) Changing the rental motor vehicle surcharge tax to a blank amount; and

(2) Changing its effective date to July 1, 2050, to encourage further discussion.

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. 485, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 485, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

HENRY J.C. AQUINO, Chair