STAND. COM. REP. NO. 224

Honolulu, Hawaii

RE: S.B. No. 1046

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1046 entitled:

"A BILL FOR AN ACT RELATING TO VEHICLE WEIGHT TAXES,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the vehicle weight tax exemption for noncommercial vehicles by removing the exemption for military reserves and other active duty military personnel and replacing it with an exemption for certain veterans.

Your Committee received testimony in support of this measure from the Department of Defense Office of Veterans' Services, Environmental Caucus of the Democratic Party of Hawai‘i, and one individual. Your Committee received testimony in opposition to this measure from the United States Indo-Pacific Command, United States Army Pacific Headquarters, and Chamber of Commerce Military Affairs Committee. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that active duty military, reservists, and National Guard members who claim legal residency in Hawaii and are stationed in the State may exempt one privately owned vehicle from the state vehicle weight tax. Presently, the exemption mirrors the federal government, which authorizes one vehicle to be shipped as a result of permanent change of station orders, regardless of family size.

Your Committee has amended this measure by:

(1) Retaining the vehicle weight tax exemption for military reserves and other active duty military personnel;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1046, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1046, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,

________________________________

CHRIS LEE, Chair