Haw. Code R. § 18-251-2.5-02

Current through July, 2024

Section 18-251-2.5-02 - Car-sharing vehicle surcharge tax; imposition

(a) The car-sharing vehicle surcharge tax is levied per half-hour or part of a half-hour that a vehicle is rented or leased by a car-sharing organization. The car-sharing vehicle surcharge tax is levied at the rate and in the manner set forth in section 251-2, HRS, on all rentals of six hours or more. For purposes of calculating the tax, the time length of rentals shall not include any complimentary grace period provided by a lessor.

Example:

Car Share, a car-sharing organization, rents a vehicle for two hours. Car Share is liable for the car-sharing surcharge tax for a total of four half-hours at the rate set forth in section 251-2.5, HRS.

Example:

Car Share rents Vehicle A for two hours and also rents Vehicle B for six hours. Car Share is liable for car-sharing surcharge tax for four half-hours at the rate set forth in section 251-2.5, HRS, for the rental of Vehicle A. Car Share is liable for car-sharing surcharge tax for one day at the rate set forth in section 251-2, HRS, for the rental of Vehicle B because that rental is six hours or longer.

Example:

Car Share rents Vehicle C for two hours and rents Vehicle D for twenty-six hours. Car Share is liable for car-sharing surcharge tax for four half-hours at the rate set forth in section 251-2.5, HRS, for the rental of Vehicle C. Car Share is liable for car-sharing surcharge tax for two days at the rate set forth in section 251-2, HRS, for the rental of Vehicle D because that rental is six hours or longer and is for all or part of two days.

Example:

Customer rents a vehicle from Car Share at 1:00 p.m. Car Share offers a complimentary grace period based on traffic conditions. Customer returns the vehicle at 7:10 p.m. the same day. Customer's rental qualifies for a complimentary grace period of fifteen minutes and customer is charged for a rental of five hours and fifty-five minutes. The car-sharing organization is liable for car-sharing surcharge tax for twelve half-hours at the rate set forth in section 251-2.5, HRS, because the rental period is not six hours or longer.

Example:

Customer rents a vehicle from Car Share at 1:00 p.m. Car Share offers a complimentary grace period based on traffic conditions. Customer returns the vehicle at 7:30 p.m. the same day. Customer's rental qualifies for a complimentary grace period of fifteen minutes and customer is charged for a rental of six hours and fifteen minutes. Car Share is liable for car-sharing surcharge tax for one day at the rate set forth in section 251-2, HRS, because the rental is six hours or longer.

Haw. Code R. § 18-251-2.5-02

[Eff 4/8/2016] (Auth: HRS §§ 231-3(9), 251-15(b)) (Imp: HRS §§ 251-1, 251-2.5)