HB 2586 Hawaii House · 2026 Regular Session

RELATING TO TAXATION.

Summary

Applies the retail or higher general excise tax or use tax rate to purchases or imports of new motor vehicles by rental car companies and requires the revenue to be deposited into the Hawaiian Home Lands Special Fund. Establishes the Hawaiian Home Lands Special Fund. Appropriates funds for a position in the Department of Taxation. Appropriates funds out of the Hawaiian Home Lands Special Fund. Effective 7/1/3000. (HD2)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 28, 2026 Last action Feb 20, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

HB2586_HD1 → HB2586_HD2 · 4 edits

MODERATE

The bill was renumbered from H.D. 1 to H.D. 2 and restructured into four parts to clarify its organization. The most significant change is the addition of a new 'Hawaiian home lands special fund' to collect revenue from rental car companies selling vehicles in Hawaii, replacing the previous plan to deposit funds directly into the Hawaiian Home Administration account. The bill also updated the definition of retail sales to explicitly require these new tax revenues to go into the special fund and established a new section in the tax code to govern this fund.

Scope change

The bill's scope expanded to include the creation of a specific new fund (Hawaiian home lands special fund) for collecting rental vehicle taxes, while the funding mechanism for the beneficiary waitlist shifted from a direct appropriation to being drawn from this new fund.

FISCAL

Created a new 'Hawaiian home lands special fund' to collect revenue from rental motor vehicle sales instead of depositing directly into the general Hawaiian Home Administration account.

DEFINITION

Updated the definition of 'retail sale' to explicitly require that tax revenue from rental motor vehicle sales be deposited into the new special fund.

REQUIREMENT

Added a new statutory section (36-XX) establishing the rules and administration for the Hawaiian home lands special fund.

TECHNICAL

Reorganized the bill structure from a single continuous text into four distinct parts (Part I through Part IV) and renumbered sections accordingly.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 20, 2026

Lower · Passed

Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Gedeon, Matsumoto, Reyes Oda voting aye with reservations; Representative(s) Alcos, Cochran, Garcia, Muraoka, Pierick, Shimizu voting no (6) and Representative(s) Quinlan excused (1).

lower

Feb 20, 2026

Committee

Reported from JHA (Stand. Com. Rep. No. 730-26) as amended in HD 2, recommending referral to FIN.

lower

Feb 19, 2026

Lower · Passed

The committee on JHA recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Kahaloa, Sayama, Takayama; Ayes with reservations: Representative(s) Shimizu; 2 Noes: Representative(s) Cochran, Garcia; and Excused: none.

lower

Feb 12, 2026

Committee

Reported from TRN (Stand. Com. Rep. No. 214-26) as amended in HD 1, recommending passage on Second Reading and referral to JHA.

lower

Feb 10, 2026

Lower · Passed

The committee on TRN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Kila, Miyake, Evslin, Grandinetti, Kitagawa, La Chica; Ayes with reservations: Representative(s) Muraoka; Noes: none; and 2 Excused: Representative(s) Cochran, Pierick.

lower

Feb 3, 2026

Committee

Re-referred to TRN, JHA, FIN, referral sheet 7

lower

Feb 2, 2026

Committee

Referred to TRN/ECD, JHA, FIN, referral sheet 6

lower

Jan 28, 2026

Introduced

Introduced and Pass First Reading.

lower

4 primary · 0 co-sponsors