HI SB23

Repeals vehicle license recovery fees established by Act 137 (2017) that allowed rental car companies to pass additional fees to lessees including motor vehicle weight taxes, registration fees, inspection fees, and use taxes.

Changes the prorated calculation of vehicle license and registration fees from 1/292nd back to 1/365th of annual fees actually paid on the particular vehicle being rented, reducing charges to individual lessees.

Removes vehicle license recovery fees from the definition in Hawaii Revised Statutes Section 437D-3 and limits pass-on costs to recurring government fees and taxes rather than fixed, one-time business costs.

Maintains ability of lessors to pass on general excise taxes, surcharge taxes, county surcharges, and airport facility charges with appropriate documentation and verification requirements.

Effective January 1, 2050, with amendments to Section 437D-8.4(a) preserved during any future reenactment of that section.