Bill Text: HI SB29 | 2011 | Regular Session | Introduced

Hawaii Senate Bill 29 (Prior Session Legislation)

Introduced

Bill Title: Motor Vehicle Rentals

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-02-01 - (S) Re-Referred to TIA, CPN. [SB29 Detail]

Download: Hawaii-2011-SB29-Introduced.html

THE SENATE	S.B. NO.	29
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

relating to motor vehicle rental.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that lessors of motor vehicles are often unable to recover the full amount of vehicle licensing fees for rental cars under the formula required under current law. Presently, the law only allows for recovery of vehicle licensing fees through a daily apportionment based on a three-hundred-sixty-five-day year. No vehicle is leased every day of the year; therefore lessors are not able to recover the total annual amount of licensing fees on any vehicle.

The purpose of this Act is to establish an equitable means for a motor vehicle lessor to recover the total annual licensing fees paid for each vehicle owned and leased by the lessor.

SECTION 2. Section 437D-8.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any law to the contrary, a lessor may visibly pass on to a lessee:

(1) The general excise tax attributable to the transaction;

(2) The vehicle license and registration fee and weight taxes[~~, prorated~~] calculated either:

(A) By prorating the annual license and registration fees and weight taxes at 1/365th of the annual [~~vehicle license and registration fee and weight taxes~~] amount actually paid on the particular vehicle being rented [~~for~~] and adding the prorated amount to each full or partial twenty-four-hour rental day that the vehicle is rented; provided the total of all vehicle license and registration fees and weight taxes charged to all lessees of a single vehicle shall not exceed the annual vehicle license and registration fee and weight taxes actually paid for the particular vehicle rented; or

(B) For lessors whose primary business is renting motor vehicles to consumers under contracts for a period of ninety days or less, by calculating a good-faith estimate of the daily rate required by the lessor to recover the actual total cost of annual licensing, registration, and inspection fees and weight taxes and adding that amount to each full or partial twenty-four hour day that the vehicle is rented; provided that if the total amount collected under this subparagraph for a single vehicle in a calendar year exceeds the actual cost of licensing, registration, and inspection fees and weight taxes for that vehicle, the lessor shall retain the excess amount and adjust the estimated daily rate for the following year accordingly; provided further that a lessor subject to this subparagraph may adjust daily rates at any time during the calendar year;

(3) The rental motor vehicle surcharge tax as provided in section 251-2 attributable to the transaction;

(4) The county surcharge on state tax under section 46‑16.8; provided that the lessor itemizes the tax for the lessee; and

(5) The rents or fees paid to the department of transportation under concession contracts negotiated pursuant to chapter 102, service permits granted pursuant to title 19, Hawaii Administrative Rules, or rental motor vehicle customer facility charges established pursuant to section 261-7; provided that:

(A) The rents or fees are limited to amounts that can be attributed to the proceeds of the particular transaction;

(B) The rents or fees shall not exceed the lessor's net payments to the department of transportation [~~made~~] under concession contract or service permit;

(C) The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts of the rents or fees paid to the department of transportation pursuant to the applicable concession contract or service permit:

(i) For all airport locations; and

(ii) For each airport location;

(D) The lessor submits to the department of transportation and the department of commerce and consumer affairs a statement, verified by a certified public accountant as correct, that reports the amounts charged to lessees:

(i) For all airport locations;

(ii) For each airport location; and

(iii) For each lessee;

(E) The lessor includes in [~~these reports~~] the statements required by subparagraphs (C) and (D) the methodology used to determine the amount of fees charged to each lessee; and

(F) The lessor submits the [~~above~~] information required by subparagraphs (C) and (D) to the department of transportation and the department of commerce and consumer affairs within three months of the end of the preceding annual accounting period or contract year as determined by the applicable concession agreement or service permit.

The respective departments, in their sole discretion, may extend the time to submit the [~~statement~~] statements required [~~in this subsection.~~] by subparagraphs (C) and (D). If the director determines that [~~an examination of the lessor's information is inappropriate~~] the information submitted by a lessor under this subsection is incorrect and the lessor fails to correct the matter within ninety days, the director may conduct an examination and charge a lessor an examination fee based upon the cost per hour per examiner for evaluating, investigating, and verifying compliance with this subsection, as well as additional amounts for travel, per diem, mileage, and other reasonable expenses incurred in connection with the examination, which shall relate solely to the requirements of this subsection, and which shall be billed by the departments as soon as feasible after the close of the examination. The cost per hour shall be $40 or as may otherwise be established by rules adopted by the director. The lessor shall pay the amounts billed within thirty days following the billing. All moneys collected by the director shall be credited to the compliance resolution fund."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2011.

INTRODUCED BY:	_____________________________

Report Title:

Motor Vehicle Rentals

Description:

Allows certain lessors whose primary business is to rent motor vehicles to calculate the licensing, registration, and inspection fees and weight taxes passed on to consumers based on a good-faith estimate of actual cost.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.