Bill Text: HI HB101 | 2012 | Regular Session | Amended

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Bill Title: Aviation Fuel Tax Credit

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Enrolled - Dead) 2012-04-23 - (H) Re-referred to TRN, JUD, FIN, referral sheet 71 [HB101 Detail]

Download: Hawaii-2012-HB101-Amended.html

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STAND. COM. REP. NO. 3296

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 101

       H.D. 2

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 101, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to support interisland air travel.

 

     More specifically, the measure establishes an aviation fuel tax credit for aviation fuel taxes passed on by distributors to interisland airplane carriers that transport people and goods between the islands of this State.

 

     Your Committee finds that this measure will help stabilize air fares imposed by interisland airplane carriers by reducing their overall fuel costs.  The measure grants a tax credit to interisland airplane carriers for amounts paid by interisland airplane carriers that represent fuel taxes imposed on distributors but passed on to the interisland airplane carriers.  Further, the tax credit is applied against an interisland airplane carrier's income tax liability, which is governed by chapter 235, Hawaii Revised Statutes.  However, your Committee notes that, as currently drafted, this measure establishes the tax credit in chapter 243, Hawaii Revised Statutes, relating to fuel tax law, rather than in Chapter 235, Hawaii Revised Statutes, relating to income tax law.

 

     Your Committee has amended this measure by:

 

     (1)  Placing the tax credit in chapter 235, Hawaii Revised Statutes;

 

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

 

     (3)  Making technical nonsubstantive amendments for the purpose of consistency.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 101, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 101, H.D. 2, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

		____________________________ DAVID Y. IGE, Chair