Bill > SB454

This bill modifies the rental motor vehicle surcharge tax in Hawaii by introducing a more granular pricing structure for partial-day rentals. Currently, the tax is a flat $5 per day, but the bill proposes that when a vehicle is rented for less than a full day, the tax will be pro-rated at $0.25 per half-hour (or portion of a half-hour). However, if a rental extends to six hours or more, the full daily rate will apply. The bill also continues a previously established annual incremental increase of $0.50 to the tax rate from January 1, 2022, through December 31, 2027. The legislation maintains existing exemptions for replacement vehicles being rented during repairs or in cases of vehicle theft or total loss, and requires lessors to disclose the county-specific portion of the tax remittance. Additionally, the bill explicitly states that peer-to-peer car-sharing programs are subject to the same tax and requirements. The bill is set to take effect on July 1, 2050, which is an unusually distant future date for legislation.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=454&year=2026