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.  (SD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	3196
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 1
STATE OF HAWAII		S.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, 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.  Statutory material to be repealed is bracketed

and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2050.