SB 454 Hawaii Senate · 2025 Regular Session

RELATING TO THE RENTAL MOTOR VEHICLE SURCHARGE TAX.

Summary

Requires the rental motor vehicle surcharge tax to be pro-rated if the vehicle is rented or leased for a portion of the day. Effective 7/1/2050. (SD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 16, 2025 Last action Feb 14, 2025

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What changed between versions

SB454 → SB454_SD1 · 4 edits

MODERATE

This bill amends the rental motor vehicle surcharge tax in Hawaii by clarifying how the tax is calculated when a vehicle is rented for only part of a day. The new language specifies that the tax is assessed at $0.25 per half-hour for partial-day rentals, while full-day rentals remain at $5. The bill also extends the annual tax increase schedule through December 31, 2027, and changes the effective date of the act to July 1, 2050. These changes provide clearer guidance for rental companies and ensure consistent tax collection across different rental durations.

Scope change

The bill maintains the same scope of applying to rental motor vehicles but clarifies the calculation method for partial-day rentals and extends the tax increase schedule.

REQUIREMENT

Changed the tax calculation for partial-day rentals from a pro-rated daily rate to a specific rate of $0.25 per half-hour, with full-day rentals assessed at the full $5 rate.

TIMELINE

Extended the annual tax increase schedule to continue through December 31, 2027, with increases of $0.50 each year starting January 1, 2022.

Changed the effective date of the act from 'upon approval' to July 1, 2050.

TECHNICAL

Added metadata and formatting information from the legislative system, including bill tracking numbers and amendment details.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from CPN/TCA (Stand. Com. Rep. No. 510) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in TCA were as follows: 3 Aye(s): Senator(s) Lee, C., Elefante, Kanuha; Aye(s) with reservations: none ; 1 No(es): Senator(s) DeCorte; and 1 Excused: Senator(s) Inouye.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, Richards; Aye(s) with reservations: Senator(s) McKelvey ; 1 No(es): Senator(s) Awa; and 0 Excused: none.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on CPN/TCA has scheduled a public hearing on 02-07-25 9:45AM; Conference Room 229 & Videoconference.

upper

Jan 21, 2025

Committee

Referred to CPN/TCA, WAM.

upper

Jan 16, 2025

Introduced

Introduced.

upper

1 primary · 0 co-sponsors