Hawaii's Department of Taxation (Department) recently announced temporary administrative rules relating to peer-to-peer car-sharing marketplaces. The rules took effect on February 9, 2021 and will automatically expire August 9, 2022. The temporary rules define rental motor vehicle "lessors" to include peer-to-peer car-sharing marketplaces. As a result, lessors of vehicles through peer-to-peer car sharing marketplaces will be responsible for reporting and paying the Rental Motor Vehicle Surcharge Tax on any rental transactions carried out on their marketplaces.
The new rules define a peer-to-peer car sharing marketplace as "any person who assists in the business of providing rental motor vehicles or vehicles to the public by (1) providing a forum, whether physical or electronic, in which vehicle owners or authorized possessors list or advertise vehicles for rent; and (2) collecting payment from the lessee, either directly or indirectly through an agreement with a third party."
In order to give taxpayers time to comply, the Department will not begin enforcing the temporary rules until March 1, 2021.