Report Title:

Rental Motor Vehicle Surcharge Tax; State Highway Fund

 

Description:

Repeals the $2 a day rate of the rental motor vehicle surcharge tax, in effect from September 1, 1999, to August 31, 2008; changes the $3 a day rate to an unspecified amount; requires the department of transportation to report additional revenue-generating initiatives to the legislature.  (SD2)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

3196

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

S.D. 2

 

 

 

 

 

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, 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.  The department of transportation shall provide recommendations to the legislature for additional revenue-generating initiatives that will replenish the state highway fund, created by section 248-8, Hawaii Revised Statutes, 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  Statutory material to be repealed is bracketed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 on July 1, 2050.