Bill > SB2594

This bill aims to increase state revenue by applying the retail or higher general excise tax or use tax rate to new motor vehicles purchased or imported by rental car companies, which are defined as "rental motor vehicles" and their owners as "lessors of rental motor vehicles." This change specifically excludes these vehicles from being considered for resale under wholesale tax rates, meaning rental companies will pay the full retail tax when acquiring new vehicles for their fleets. Additionally, the bill appropriates funds for a full-time tax inspector position within the Department of Taxation to help identify, monitor, and collect general excise taxes from contractors working on federal contracts within the state, addressing concerns about potential revenue shortfalls due to federal policies and past income tax cuts.

Business and Industry, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2594&year=2026