Report Title:

Transportation; Rental Motor Vehicle Surcharge Tax

 

Description:

Increases the rental motor vehicle and tour vehicle surcharge tax to an unspecified amount, with an unspecified portion to be deposited into the general fund beginning 7/1/2009.  (SD3)

 

THE SENATE	S.B. NO.	698
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 3
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO THE RENTAL MOTOR VEHICLE AND TOUR VEHICLE SURCHARGE TAX.

 

 

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

 

     SECTION 1.  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 $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.

     (b)  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."

     SECTION 2.  Section 251-5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§251-5[]]  Remittances.  All remittances of surcharge taxes imposed under this chapter shall be made by cash, bank draft, cashier's check, money order, or certificate of deposit to the office of the taxation district to which the return was transmitted.  The department shall deposit the moneys into the state treasury to the credit of the state highway fund[.]; provided that, beginning July 1, 2009,       per cent of the collection each month from the rental motor vehicle and tour vehicle surcharge tax under section 251-2 shall be deposited into the state general fund."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2070.