Carshare Vehicle Surcharge Tax, Hawaii, 2014

  • Date Enacted: Jun 23, 2014

Summary

A new carshare vehicle surcharge tax in Hawaii took effect on January 1st, 2015. Previously, Hawaii’s rental car surcharge tax treated carshare vehicles like regular rental cars. Carshare vehicles were charged the same $3 flat rate as daily car rentals, resulting in huge tax rates of more than 30 percent for one-hour rentals.[1] The new carshare vehicle surcharge tax is 25 cents per half-hour, or any portion of a half-hour, that a rental motor vehicle is rented or leased by a car-sharing organization. The tax will be applicable to all qualifying carsharing organization registered as such with the Hawaii Department of Revenue; per the statute, carsharing organizations must be subject “to at least one surcharged imposed by this chapter.” [2]

Establishes a car-sharing vehicle surcharge tax. Citation: SB 2731 

References

  1. Hawaii Car Sharing Tax, January 2015, Avalara TaxRates
  2. Bill SB2731, State of Hawaii
Key Definitions: ““Car-sharing organization” means a rental motor vehicle lessor that operates a membership program in which:(1) Self-service access to a fleet of vehicles is provided, with or without requiring a reservation, exclusively to members of the organization who have paid a membership fee; (2) Members are charged a usage rate, either hourly or by the minute, for each use of a vehicle; (3) Members are not required to enter into a separate written agreement with the organization each time the member reserves and uses a vehicle; and (4) The average paid use period for all vehicles provided by the organization during any taxable period is six hours or less.” p.2““Car-sharing organization” means a rental motor vehicle lessor that operates a membership program in which:(1) Self-service access to a fleet of vehicles is provided, with or without requiring a reservation, exclusively to members of the organization who have paid a membership fee; (2) Members are charged a usage rate, either hourly or by the minute, for each use of a vehicle; (3) Members are not required to enter into a separate written agreement with the organization each time the member reserves and uses a vehicle; and (4) The average paid use period for all vehicles provided by the organization during any taxable period is six hours or less.” p.2

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  • Hawaii, US
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