Haw. Code R. § 18-251-1-02 - "Lessor", defined

Current through February, 2022

(a) As used in this chapter, "lessor" means any person in the business of providing rental motor vehicles or vehicles to the public.

Example: ABC U-Drive (ABC) owns 100 cars and is in the business of providing cars to customers for a fee. ABC is the lessor of these cars, and the incidence of the rental motor vehicle surcharge tax is on ABC.

(b) For purposes of this chapter, a wholesaler, tour packager, or travel agent whose business and service may include arranging the rental vehicle transportation for a person shall not be deemed a lessor, unless the wholesaler, tour packager, or travel agent actually rents or leases (as defined in section 18-251-1-04 ) the vehicle.

Example: Vacation Services (Vacation) is a company that arranges a variety of visitor industry services, such as air transportation, hotel room accommodations, ground transportation, tours, classes, and luaus into packages, and sells these services to tourists. ABC U-Drive (ABC) enters into an agreement with Vacation to provide the cars for ground transportation. When the customer receives a rental car from ABC, the rental motor vehicle surcharge tax is triggered, and the surcharge tax is imposed on ABC, not Vacation.

Example: Vacation Services (Vacation) decides that its business would become more profitable if it started to use its own cars instead of making arrangements with ABC U-Drive. Vacation acquires 5 cars and provides them to customers for a fee. Vacation is now the lessor of these cars, and the rental motor vehicle surcharge tax is imposed on Vacation.

Notes

Haw. Code R. § 18-251-1-02

[Eff 1/27/92] (Auth: HRS §§ 231-3(9), 251-15(b)) (Imp: HRS § 251-2)