For the second year, Hawaii lawmakers are proposing to raise the state’s daily car rental tax, according to a report by Hawaii Free Press. Last year, the rental car surcharge was increased from $3 to $5 per day.
The tax would be a way to fund more highway construction projects, which would help reduce traffic congestion, says the report.
The House Finance Committee approved House Bill 1930, which would raise the daily rental car surcharge from $5 per day to an unspecified amount, according to the report. The bill’s original draft set the new fee at $8 per day, but lawmakers haven’t come to a final decision on the amount.
The Senate Ways and Means Committee did approve Senate Bill 2687 to increase the car rental fee to $8 per day on Maui only, says the report. The money from the increased surcharge will be used on Maui’s Honoapiilani Highway project.