Bill > SB2784

This bill, effective July 1, 2050, with certain sections taking effect January 1, 2027, 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, a change from the current wholesale tax rate. This means rental car companies will pay a higher tax when acquiring new vehicles for their fleets, similar to what individual consumers pay. The bill also appropriates funds to create a new tax inspector position within the Department of Taxation to better identify, monitor, and collect general excise taxes from contractors working on federal contracts within the state, addressing concerns about potential revenue loss from unregistered businesses and imported laborers. The legislative findings highlight a projected financial crisis due to federal policies and past income tax cuts, and express concern that current tax laws allow rental car companies to benefit from depreciation on short-term inventory rather than for genuine value-generating assets.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2784&year=2026