THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that traffic congestion is a serious problem that negatively affects the quality of life for residents and visitors in Hawaii. Congestion on the State's roadways continues to increase, forcing people to spend more time sitting in vehicles and less time being productive at work or with families and friends.
The legislature also finds that visitors make up a large proportion of public highway users and that counties have been impacted differently by the level of visitors. For example, Maui county has the highest number of motor vehicle rentals on a per capita basis. This places a greater strain on Maui roads and further increases roadway congestion.
The legislature believes that it is prudent to target a specific group of highway users to raise revenue for necessary capital improvements to some of Hawaii's highways, which will relieve congestion and improve the quality of life for both residents and visitors.
The purpose of this Act is to increase the rental motor vehicle surcharge tax in counties experiencing a high number of motor vehicle rentals and to use that revenue to fund projects in those counties to increase highway capacity and relieve traffic congestion.
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 $5 a day, or any
portion of a day that a rental motor vehicle is rented or leased[
that, in any county having a resident population of more than 125,000, but less
than 195,000, the rental motor vehicle surcharge tax shall be $
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 [
being repaired; [
(B) Has been stolen and is unrecovered or will not be repaired due to a total loss of the vehicle; and
(2) A record of the repair order, the stolen vehicle
record, or total loss vehicle claim for the vehicle [
is] shall be
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.
In addition to the requirements imposed by section 251-4, a lessor shall disclose, to the department, the portion of the remittance attributed to the county in which the motor vehicle was operated under rental or lease."
SECTION 3. Section 251-5, Hawaii Revised Statutes, is amended to read as follows:
"§251-5 Remittances. (a) 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. [
Except as provided in subsection (b), the department shall deposit the
moneys into the state treasury to the credit of the state highway fund.
(b) For a county having a resident population of more than 125,000, but less than 195,000, $3 out of every $ collected pursuant to section 251-2(a) for the use of any rental motor vehicle in that county shall be deposited into that county's subaccount within the state highway fund established pursuant to section 248-9(c)."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on January 1, 2050.
Rental Motor Vehicle Surcharge Tax; Increase; Counties; State Highway Fund
Amends the amount of the rental motor vehicle surcharge tax to an unspecified amount for any county with a resident population of more than 125,000, but less than 195,000. Allocates the increase in surcharge tax revenues to the county's subaccount within the state highway fund. Effective 1/1/2050. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.