STAND. COM. REP. NO. 1031

Honolulu, Hawaii

RE: H.B. No. 485

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 485, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the rental motor vehicle surcharge tax from $5 per day to an unspecified amount.

Your Committee received testimony in support of this measure from the Department of Transportation and one individual. 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, Grassroot Institute of Hawaii, and Tax Foundation of Hawaii.

Your Committee finds that the rental motor vehicle surcharge tax is used to fund highway construction projects and maintain and repair roadways in Hawaii. This measure will increase the rental motor vehicle surcharge tax from $5 per day to an unspecified amount, which will provide more money to the State to repair and maintain our roads and highways.

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, H.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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CHRIS LEE, Chair