Bill > HB1937

This bill modifies tax laws to ensure more equitable revenue collection and establishes a special fund for teacher hazard pay. Specifically, it changes the definition of a "sale at wholesale" to exclude the sale of motor vehicles to rental car companies, meaning these sales will now be subject to a higher excise tax rate, similar to retail sales. This change aims to capture more tax revenue when these vehicles are not resold within the state. Additionally, the bill imposes the maximum allowable excise tax on the use of tangible personal property for rental motor vehicles imported or purchased by rental companies. The additional tax revenue generated from these changes between July 1, 2026, and June 30, 2030, will be deposited into a newly established "Teacher Temporary Hazard Pay Special Fund." This fund will be used to provide a $20,000 temporary hazard pay bonus to eligible teachers who were employed between March 4, 2020, and March 25, 2022, distributed in four annual installments. After June 30, 2030, any remaining funds in the special fund will go to the general fund, and future revenue from these tax changes will also be deposited into the general fund. The bill is set to take effect on July 1, 3000, but it will be repealed and the original tax laws will be reinstated on July 1, 2030.

Budget and Finance, Education, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1937&year=2026