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Bill > HB2586


HI HB2586

HI HB2586
Relating To Taxation.


summary

Introduced
01/28/2026
In Committee
02/20/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies and requires the revenue to be deposited into the Hawaiian Home Lands Special Fund. Establishes the Hawaiian Home Lands Special Fund. Appropriates funds for a position in the Department of Taxation. Appropriates funds out of the Hawaiian Home Lands Special Fund. Effective 7/1/3000. (HD2)

AI Summary

This bill modifies tax laws to ensure that rental car companies pay the retail or higher general excise tax (a tax on business transactions) or use tax (a tax on goods purchased out-of-state for use in-state) on new motor vehicles they purchase for their fleets, rather than a lower wholesale rate, with the revenue generated to be deposited into a newly established Hawaiian Home Lands Special Fund. This fund is intended to support native Hawaiians through initiatives like developing housing, purchasing land, and providing financial assistance for homeownership or rental subsidies, aiming to reduce the waitlist for beneficiaries of the Hawaiian Homes Commission Act of 1920. Additionally, the bill appropriates funds to create a position within the Department of Taxation to improve tax compliance among out-of-state contractors working in Hawaii, ensuring they pay the required general excise taxes.

Committee Categories

Budget and Finance, Justice, Transportation and Infrastructure

Sponsors (4)

Last Action

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Gedeon, Matsumoto, Reyes Oda voting aye with reservations; Representative(s) Alcos, Cochran, Garcia, Muraoka, Pierick, Shimizu voting no (6) and Representative(s) Quinlan excused (1). (on 02/20/2026)

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