HI HB1240

Amends section 437D-8.4 of Hawaii Revised Statutes to allow motor vehicle lessors to pass licensing, registration, and weight taxes to renters using two calculation methods instead of just one.

First method maintains existing approach: prorating annual fees at 1/365th per day, with total charges across all lessees not exceeding actual annual fees paid.

Second method applies only to lessors whose primary business is renting vehicles for 90 days or less: allows calculating a good-faith daily estimate of licensing, registration, inspection, and weight tax costs, with ability to adjust rates if actual costs differ.

Requires lessors using the good-faith estimate method to retain any excess collections and adjust rates for the following year accordingly; permits rate adjustments at any time during the calendar year.

Effective July 1, 2030, with provisions that amendments are not repealed when the statute undergoes reenactment on December 31, 2022.