THE SENATE	S.B. NO.	3040
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 251-1, Hawaii Revised Statutes, is amended as follows:

1.  By adding a new definition to be appropriately inserted and to read:

     ""Car-sharing organization" means an organization that operates a membership program intended to offer an alternative to car ownership under which persons or entities that become members are permitted to use vehicles from a fleet on an hourly basis."

     2.  By amending the definition of "rental motor vehicle" to read:

     ""Rental motor vehicle" or "vehicle" means every vehicle which is:

     (1)  Self-propelled and every vehicle which is propelled by electric power but which is not operated upon rails which is rented or leased or offered for rent or lease in this State, whether for personal or commercial use, for a period of six months or less; and

     (2)  Designed to carry seventeen passengers or fewer.

"Rental motor vehicle" or "vehicle" shall not include:

     (1)  Mopeds as defined in section 286-2;

     (2)  Any trucks, truck-tractors, tractor-semitrailer combinations, or truck-trailer combinations, with:

         (A)  A manufacturer's nominal carrying capacity of one thousand pounds or more; and

         (B)  A barrier or separation between the operator's compartment and the cargo area; [and]

     (3)  Cargo vans with no more than two seats, including the driver's seat; provided that vans with a recreational vehicle converter package and vans with quick release passenger seats shall not be classified as cargo vans[.]; and

(4) Vehicles that are rented by a car-sharing organization to a member of that car-sharing organization on an hourly basis."

     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 $7.50 a day, except that after June 30, 2012, the tax shall be $3 a day, or any portion of a day that a rental motor vehicle is rented or leased[.]; provided that a car-sharing organization shall be exempt from the rental motor vehicle surcharge tax.  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[.]; and

(3) The vehicle is rented by a car-sharing organization, the lessor is a member of that car-sharing organization, and the car-sharing organization rents vehicles to members of the organization on an hourly basis."

     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.

INTRODUCED BY:

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Report Title:

Rental Motor Vehicle and Tour Vehicle Surcharge Tax

Description:

Exempts from the rental motor vehicle and tour vehicle surcharge tax vehicles that are rented by a car-sharing organization to members of the organization on an hourly basis.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.