Mr. Speaker, I rise in opposition to HB 765, HD1 SD2 CD1, relating to the Rental Motor Vehicle Surcharge Tax.
This bill increases the surcharge tax by 50%. I oppose tax increases even if they are mainly targeted at tourists.
The most offensive part of this bill is raiding the highway fund for $11 million dollars in each of two fiscal years. This means we will have to raise the gasoline tax very soon.
I do not believe there is a $22 million surplus in the highway fund. I ask each of you to drive from the capital to Kapolei at 5 PM on a week day - come to my house for dinner - we eat promptly at 6 PM. After an hour in traffic you will know that the $22 million dollars in the highway fund is urgently needed to improve H-1.
The highway fund comes from the gasoline tax. Let's spend it to improve highways.