SB 454 Hawaii Senate · 2026 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 passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 16, 2025 Last action Dec 8, 2025

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What changed between versions

SB454 → SB454_SD1 · 4 edits

MODERATE

This bill updates the rental motor vehicle surcharge tax calculation to charge $0.25 per half-hour for partial-day rentals, rather than pro-rating the daily rate. It also removes the requirement to pro-rate the tax for full-day rentals and sets the effective date of the law to July 1, 2050.

Scope change

The scope of the tax calculation changed from a daily pro-rated model to a specific half-hourly model for partial-day rentals, while the applicability to lessors remains the same.

REQUIREMENT

The tax calculation for partial-day rentals was changed from a daily pro-ration to a specific rate of $0.25 per half-hour or portion thereof, with a full daily rate applied for rentals of six hours or more.

The previous requirement to pro-rate the tax for any rental motor vehicle rented for a portion of a day was removed.

TIMELINE

The effective date of the Act was changed from immediate approval to July 1, 2050.

TECHNICAL

The bill header was updated from 'SB' to 'Bill SD' and the legislative session identifier was updated to 'S.D. 1'.

Floor votes

How they voted

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

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

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