Bill Text: HI SB726 | 2014 | Regular Session | Amended

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Bill Title: Rental Motor Vehicle Surcharge Tax; Car-sharing Organizations

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB726 Detail]

Download: Hawaii-2014-SB726-Amended.html

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THE SENATE	S.B. NO.	726
TWENTY-SEVENTH LEGISLATURE, 2013		S.D. 2
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 two new definitions to be appropriately inserted and to read as follows:

     ""Car-sharing organization" means an organization that:

     (1)  Operates, exclusively, a qualified fleet of vehicles primarily for hourly rental;

     (2)  Operates an annual fee-based membership program in which the membership fee is charged separately from any other charges;

     (3)  Provides self service, fully automated access to its qualified fleet of vehicles exclusively to its members;

     (4)  Requires no separate written agreement from its members for each use of its qualified fleet of vehicles;

     (5)  Allows members to use its qualified fleet of vehicles for an hourly fee that is inclusive of fuel, insurance, maintenance, and other costs;

     (6)  Limits members' use of its qualified fleet of vehicles to no more than twelve hours per day; and

     (7)  Requires return of vehicles to the point of rental.

     "Qualified fleet of vehicles" means a fleet of vehicles that is comprised of no less than        per cent hybrid electric, plug-in hybrid electric, and electric vehicles as defined by the United States Environmental Protection Agency or the United States Department of Energy and published in the Fuel Economy Guide, or any succeeding publication."

     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 shall be exempt from the rental motor vehicle surcharge tax on rentals of its qualified fleet; provided that the car-sharing organization:

     (1)  Submits an application to the department that includes a certification that the applicant is in compliance with all of the requirements of being a car-sharing organization;

     (2)  Submits with the application any other information the department may require to make a determination on the application; and

     (3)  The department approves the application for tax exempt status under this subsection.

The department may also require, as a condition of tax exempt status, that the car-sharing organization transmit an annual electronic report of all exempt income derived from the operation of the car-sharing organization."

     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, 2050.

 

 

Report Title:

Rental Motor Vehicle Surcharge Tax; Car-sharing Organizations

 

Description:

Exempts car-sharing organizations from the rental motor vehicle surcharge tax upon approval of DoTax.  Defines car-sharing organization and qualified fleet of vehicles.  Effective 07/01/2050.  (SD2)

 

 

 

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