HAR § 18-251-2.5-01 — Car-sharing vehicle surcharge tax

(a) For purposes of the car-sharing vehicle surcharge tax: “Average paid use period” means the total time a lessor’s vehicles are rented or leased divided by the total number of rentals entered into. Average paid use period is calculated per taxable period. “Organization” means any person or company as defined in section 237-1, HRS. “Paid use period” means the total time a lessor’s vehicle is rented or leased and is computed from the time the vehicle is rented or leased until the time the vehicle becomes available for rent or lease to a different customer or becomes unavailable to any customer. “Paid use period” shall not include any complimentary grace period provided by a lessor. “Taxable period” means the organization’s taxable year. (b) For purposes of determining the total number of rentals entered into by a lessor, a single rental continues until the vehicle rented becomes available to a different customer or becomes unavailable to any customer. (c) The determination of whether a lessor is a car-sharing organization is made on a per organization basis. Example: Customer rents a vehicle from Lessor at 10:00 a.m. Customer parks and shops for one hour. During the time Customer is shopping, the vehicle remains available only to Customer and is not available to other customers of Lessor. Customer then returns to the vehicle, drives home to deliver her purchases, and relinquishes the vehicle at 1:00 p.m. the same day, at which time the vehicle becomes available to other customers of Lessor. Lessor has entered into one rental for which the paid use period is three hours. Even if Customer is not charged for the time she is shopping, the rental in this example may not be treated as two separate rentals because the vehicle did not become available to a different customer of Lessor during that time and remained available to Customer. Example: Customer rents a vehicle from Lessor at 8:00 a.m. and relinquishes the vehicle at 8:00 a.m. the following day. The vehicle becomes available to other customers of Lessor at that time. Customer then decides she needs to use a car again, immediately returns to the same vehicle, rents the vehicle from Lessor at 8:02 a.m., and relinquishes the vehicle at 10:02 a.m. the same day. Because the vehicle became available to other customers between periods of rental, Lessor has entered into two rentals, one with a paid use period of one day and another with a paid use period of two hours. HRS §251-2 HRS §251-2.5 RENTAL MOTOR VEHICLE, TOUR VEHICLE, AND CAR-SHARING VEHICLE SURCHARGE TAX