Hawaii Senate Bill SB2721

Hawaii 2022 Regular Session

• Introduced: 1/21/22
• Refer: 1/24/22
• Report Pass: 2/17/22
• Refer: 2/17/22

Caption

Relating To Energy Tax.

Impact

The introduction of the flight assistance tax represents a significant change in the financial landscape for aviation fuel distributors. The structure outlined in SB2721 mandates regular reporting and record-keeping by distributors, which aims to enhance transparency and accountability. By allocating a portion of the tax revenue towards airport maintenance and innovative projects, the bill could enhance the overall operational standard and infrastructure of state airports. Furthermore, it lays the groundwork for supporting the state's growth in the aeronautical sector, potentially catalyzing economic opportunities tied to aviation.

Summary

Senate Bill 2721, also known as the Flight Assistance Tax Bill, introduces a state-level tax specifically for aviation fuel. This legislation imposes a tax of $1.05 on each barrel of gasoline or aviation fuel sold for use in airplanes. This new tax is directed towards supporting the maintenance, operation, and repair of airports across the state, as well as funding various innovative projects and developments in aeronautics. The creation of a dedicated Flight Assistance Tax Special Fund is a notable aspect of this bill, ensuring that the revenues collected are utilized effectively for aviation-related advancements in Hawaii.

Sentiment

The sentiment around SB2721 appears to be generally positive among supporters who advocate for improved airport facilities and a robust aviation sector in Hawaii. They argue that the investment in airport maintenance and innovation is crucial for travel, tourism, and economic development. However, there may be concerns from distributors about the additional financial burden placed on them, which could lead to increased costs for consumers. The discussion surrounding the bill reflects a desire for balancing support for the aviation infrastructure while considering the economic impacts on distributors and end users.

Contention

While the bill has garnered support for its intentions, it may be contentious among those who oppose additional taxation, arguing that it could elevate fuel prices and deter aviation activities. The distinction between local and state taxation powers could also come into play, raising questions about the burdens imposed on distributors and how these additional charges may affect small businesses in the aviation sector. These points highlight the ongoing tension in legislative discussions about taxation's role in supporting public infrastructure versus their impact on local economies.