Report Title:
Rental Motor Vehicle Surcharge Tax
Description:
Allows counties to impose a rental motor vehicle surcharge tax of up to $1 per day and establishes that the county shall be responsible for its collection. Extends sunset date of the state tax. (SD1)
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THE SENATE |
S.B. NO. |
1625 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
S.D. 1 |
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STATE OF HAWAII |
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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. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§46- County surcharge on state rental motor vehicle surcharge tax. (a) Each county may establish a surcharge tax on state rental motor vehicle surcharge tax at the rate enumerated in section 251-2. A county electing to establish this surcharge shall do so by ordinance; provided that:
(1) No ordinance shall be adopted until the county has conducted a public hearing on the proposed ordinance;
(2) The ordinance shall be adopted prior to October 1, 2007; and
(3) No county surcharge on state rental motor vehicle tax that may be authorized under this section shall be levied prior to October 1, 2007.
Notice of the public hearing required under paragraph (1) shall be published as provided in section 1-28.5 at least twice within the period of thirty days immediately preceding the date of the hearing.
(b) A county electing to exercise the authority granted under this section shall be responsible for all administration, accounting, collection, enforcement, and compliance functions associated with the election to assess a county surcharge on state rental motor vehicle surcharge tax. A county electing to exercise the authority granted under this section shall notify the director of taxation within ten days after the county has adopted a surcharge on state rental motor vehicle surcharge tax ordinance.
(c) The ordinance adopted by the county shall provide the county with the rights and liabilities entitled the department of taxation under chapter 251 with regard to return, payment, penalty, refund, appeals, collection, and remittance rights; provided that such rights shall be those of the electing county only after adopting the ordinance; and provided further that any ordinance adopted under this section shall provide an electing county with rights and liabilities equal to or less than the rights and liabilities of the department of taxation.
(d) The department of taxation shall have no responsibility with regard to a county surcharge assessed under this section."
SECTION 2. 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,]
2009, the tax shall be $3 a day, or any portion of a day that a rental
motor vehicle is rented or leased[.], payable to the State; provided
that a county may assess a similar surcharge tax on rental motor vehicles, not
to exceed $1 a day, for the period of October 1, 2007, to August 31, 2009,
payable to the respective county assessing the tax pursuant to section 46- .
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 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.