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Bill

SB 454

RELATING TO THE RENTAL MOTOR VEHICLE SURCHARGE TAX.

2025 Regular Session Introduced by Karl Rhoads

Hawaii SB 454 modifies the rental car surcharge tax structure; currently pending budget committee review before potential enactment.

Carried over to 2026 Regular Session.
#rentalmotorvehicles #taxes
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Bill Summary · SB 454

Legislative bill overview

SB 454 modifies Hawaii's rental motor vehicle surcharge tax, a fee collected on rental car transactions. The bill has passed initial readings and committee review but remains pending in the Ways and Means Committee (WAM) for budget and fiscal impact analysis before potential passage.

Why is this important

Rental car surcharge taxes directly affect tourism costs and state revenue, making this economically significant for Hawaii's largest industry. Changes to this tax structure can influence visitor spending, rental car company operations, and state funding for transportation or other programs.

Potential points of contention

  • Tourism competitiveness — Increasing surcharges may make Hawaii rentals less competitive compared to other destinations, potentially reducing bookings and state tax revenue
  • Fiscal impact unclear — Without access to the specific amendment details (SD 1), the actual tax rate changes and revenue projections remain unknown
  • Industry burden — Rental companies may pass increased costs to consumers or adjust service levels, affecting both tourists and residents

Compiled from official sources — confirm details with the bill’s official record.

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