Bill Text: HI HB2740 | 2012 | Regular Session | Amended
Bill Title: Power Generation; Naphtha Fuel Tax; Sunset; Repeal
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2012-06-29 - (S) Act 188, 6/28/2012 (Gov. Msg. No. 1291). [HB2740 Detail]
Download: Hawaii-2012-HB2740-Amended.html
STAND. COM. REP. NO. 3266
Honolulu, Hawaii
RE: H.B. No. 2740
H.D. 1
S.D. 1
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. 2740, 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 maintain the reduced cost of electricity generation fueled by naphtha by extending the sunset date of the reduced fuel tax on naphtha used in a power-generating facility.
Written comments in support of this measure were submitted by the Department of Taxation and Kauai Island Utility Cooperative.
Your Committee finds that the current fuel license tax rate for naphtha is scheduled to expire on December 31, 2012. Allowing the special tax rate on naphtha fuel to expire would cause a more than ten-fold increase in the fuel tax rate for certain power generating facilities. Extending the sunset date would help prevent an increase in energy production costs.
Your Committee has amended this measure by:
(1) Extending the sunset date of the reduced fuel tax on naphtha fuel used in a power-generating facility from December 31, 2015, to December 31, 2017;
(2) Changing the effective date to July 1, 2050, to facilitate further discussion of the measure; and
(3) Making technical nonsubstantive amendments for the purpose of conforming to preferred drafting conventions.
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. 2740, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2740, H.D. 1, S.D. 1.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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____________________________ DAVID Y. IGE, Chair |
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