Report Title:

Rental motor vehicle; surcharge; surcharge tax; State Highway Fund

 

Description:

Extends the $1 per day surcharge on rental motor vehicles beyond September 1, 2008 and deposits the money into the State Highway Fund.  (HB3196 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

3196

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

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,  [2008,] 2009, 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 if:

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

     (2)  A record of the repair order for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B‑16."

     SECTION 2.  (a)  The department of transportation shall study the financial requirements of the state highway fund, with an emphasis of the adequacy and equity of revenues generated by one or more revenues sources pursuant to section 251-2, Hawaii Revised Statutes, compared with other revenue sources contributing to or that could be contributing to the highway fund.

     (b)  The study may include discussions and meetings with representatives of different interest groups and present contributors of revenues to the highway fund.

     (c)  The study may include a review of:

     (1)  Past, present, and projected revenues of the state highway fund;

     (2)  The ability of the department of transportation to plan, implement, and expend funds on a timely basis;

     (3)  An analysis of the actual revenue needs of the department of transportation;

     (4)  Other revenue sources of the state highway fund and their nexus to the fund; and

     (5)  Other governmental matching funds.

     (d)  The study shall include data from the 2000-2001 fiscal year to the present fiscal year and may include any data, information, or conclusions by task forces or groups that have discussed or met in the past to evaluate at least in part the fiscal needs, revenue sources, or viability of the state highway fund.

     (e)  The department of transportation shall submit a final report, including proposed legislation for increasing revenue sources for the state highway fund to meet its ongoing and future needs, to the legislature no later than twenty days prior to the convening of the regular session of 2009.

SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.