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Bill

SB 2562

RELATING TO THE RENTAL MOTOR VEHICLE SURCHARGE TAX.

2026 Regular Session Introduced by Karl Rhoads

Hawaii bill establishing rental car surcharge tax to fund state programs; affects visitor costs and tourism competitiveness.

Referred to CPN/TRS, WAM.
#rentalmotorvehicle #taxes
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WeVote Research Nonpartisan
Bill Summary · SB 2562

Legislative bill overview

SB 2562 proposes to establish or modify a surcharge tax on rental motor vehicles in Hawaii. The bill was introduced on January 23, 2026, and has passed first reading, currently being reviewed by the Committees on Consumer Protection & New Media/Tourism & Recreation Services and Ways & Means.

Why is this important

Rental car surcharges directly affect visitors and residents who rent vehicles, potentially influencing tourism costs and local transportation expenses. The revenue generated typically funds specific state programs, and the tax structure can impact the competitiveness of Hawaii's tourism industry compared to other destinations.

Potential points of contention

  • Tourism competitiveness: Additional surcharges may increase rental car costs and discourage visitors, affecting the broader tourism economy
  • Revenue allocation: Stakeholders may disagree on which programs or infrastructure projects should receive the surcharge revenue
  • Equity concerns: The tax may disproportionately affect budget-conscious travelers and local residents compared to affluent visitors

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

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