STAND. COM. REP. NO. 1506-24

Honolulu, Hawaii

, 2024

RE: H.R. No. 135

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.R. No. 135 entitled:

"HOUSE RESOLUTION REQUESTING THE DEPARTMENT OF TRANSPORTATION TO CONDUCT A STUDY ON THE IMPACT OF ALLOWING MOTOR VEHICLE OWNERS TO PAY THEIR MOTOR VEHICLE REGISTRATION AND ASSOCIATED TAXES AND FEES BIANNUALLY,"

begs leave to report as follows:

The purpose of this measure is to request that the Department of Transportation conduct a study regarding the impact of allowing motor vehicle owners to biannually pay motor vehicle registration fees and taxes.

Your Committee received testimony in opposition to this measure from the Department of Transportation.

Your Committee finds that despite these concerns the annual taxes and fees collected when non-new motor vehicles are registered can pose a huge financial burden to Hawaii's residents who may not be able to afford this lump sum payment. Your Committee also finds that these costs may result in residents abandoning their cars, using illegal vehicles, or struggling to keep up with other payments. Your Committee finds that biannual payments may reduce these issues and allow low-income residents to afford the cost of living and their motor vehicle registration payments. Your Committee notes that while there are concerns regarding biannual payments of motor vehicle registration fees and taxes, such as increased transaction fees charged by the online and kiosk registration systems and additional costs for printing and distributing two renewal notices, registration decals, and notices, this issue warrants greater study.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 135 and recommends that it be referred to your Committee on Finance.

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

____________________________

CHRIS TODD, Chair