Report Title:

Rental Motor Vehicle Surcharge Tax

Description:

Permanently exempts lessors who lease vehicles to lessees whose own vehicles are under repair from the rental motor vehicle surcharge tax. (HB390 CD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

390

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

S.D. 2


C.D. 1

A BILL FOR AN ACT

 

RELATING TO RENTAL MOTOR VEHICLE SURCHARGE TAX.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 251-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $2 a day, except that for the period of September 1, 1999, to August 31, 2007, the tax shall be $3 a day, or any portion of a day that a rental motor vehicle is rented or leased. The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor [during the period September 1, 1999, to August 31, 2007,] if:

(1) The lessor is renting the vehicle to replace a vehicle of the lessee that is being repaired; and

(2) The repair order for the vehicle is retained by the lessor for four years for verification purposes."

SECTION 2. Statutory material to be repealed is bracketed and stricken.

SECTION 3. This Act shall take effect upon its approval.