HAR § 18-251-1-05 — RENTAL MOTOR VEHICLE, TOUR VEHICLE, AND CAR-SHARING VEHICLE SURCHARGE TAX Example: ABC Charities (ABC) approaches XYZ Cars (XYZ) and asks for a contribution from XYZ to support one of its projects

Instead of giving cash, XYZ allows ABC to use one of its cars without paying the rental fee for the length the project. XYZ asks ABC to provide proof of insurance coverage in case there is an accident involving the car during the time ABC is using the car. Thus, while XYZ, as owner of the car, may be liable in the case of an accident, ABC also has acknowledged its liability for any possible damage that may occur while using the car. Accordingly, although ABC is not charged the rental fee, XYZ receives consideration, ABC’s acknowledgment of its shared liability for the car while using the car, and the car is subject to the surcharge tax. Example: Hawaii Rent-A-Car Agency allows a private nonprofit organization to use one of Hawaii Rent-A-Car Agency’s station wagons for a month for a public service project. The organization does not pay any money to Hawaii Rent-A-Car Agency. Hawaii Rent-A-Car Agency also does not request the organization to acknowledge its liability for possible damage to the station wagon while using it, provide insurance coverage or proof of such coverage, or to sign a collision damage waiver. Accordingly, Hawaii Rent-A-Car Agency has received no consideration and the surcharge tax does not apply.