THE SENATE	S.B. NO.	726
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 1
STATE OF HAWAII

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 251-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Car-sharing organization" means an organization that operates a membership program in which its members are permitted to use vehicles from the organization's fleet on an hourly basis at hourly rates that include the cost of insurance and the cost of the vehicle to the organization."

     SECTION 2.  Section 251-2, Hawaii Revised Statutes, is amended to read as follows:

"§251-2 Rental motor vehicle and tour vehicle surcharge tax.  (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.

(b)  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.

     [(b)] (c)  There is levied and shall be assessed and collected each month a tour vehicle surcharge tax of:

     (1)  $65 for each tour vehicle used or partially used during the month that falls into the over twenty-five passenger seat category; and

     (2)  $15 for each tour vehicle used or partially used during the month that falls into the eight to twenty-five passenger seat category.

The tour vehicle surcharge tax shall be levied upon the tour vehicle operator.

(d)  A car-sharing organization, as defined in section 251‑1, shall be exempt from the rental motor vehicle surcharge tax."

     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  Statutory material to be repealed is bracketed and stricken.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.

Report Title:

Rental Motor Vehicle Surcharge Tax; Car-sharing Organizations

Description:

Exempts car-sharing organizations from the rental motor vehicle surcharge tax.  Defines car-sharing organization.  (SD1)

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