HOUSE OF REPRESENTATIVES	H.B. NO.	444
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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, 2011, 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[.]; or

(3) The lessor is renting an electric vehicle.

For the purpose of this subsection, the term "electric motor vehicle" means a motor vehicle that is propelled to a significant extent by an electric motor that draws electricity from a battery that:

(1) Has a capacity of not less than four kilowatt hours; and

(2) Is capable of being recharged from an external source of electricity."

     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  Statutory material to be repealed is bracketed and stricken.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, 2011.

INTRODUCED BY:

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Report Title:

Rental Motor Vehicle Surcharge Tax; Electric Vehicles

Description:

Exempts lessors from the rental motor vehicle surcharge tax when renting an electric vehicle.

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