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Kauaʻi May Have New Tax Laws for Rental Cars

Wikimedia Commons
Wikimedia Commons
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Property tax classes typically include residential, commercial and vacation rental. But the Kauaʻi County Council is introducing a bill that would create a new property tax class for rental car companies.

Bill 2828 proposes a new property tax class for commercial rental car companies or people with a fleet of more than ten vehicles. This includes traditional rental car companies and entities that use peer-to-peer platforms, such as Turo.

Exact rates are undecided, but they will likely be higher than other industrial companies.

Councilmember Luke Evslin introduced the bill at the request of the finance department for Mayor Derek Kawakami’s office.

"It’s clear that we are over capacity for tourism, and the county has limited tools that are at our disposal to better manage the industry," Evslin said.

"One of the clear tools we have are property taxes. There’s been more and more discussion around using property taxes to encourage or discourage different uses, or at least ensure that we’re covering the cost associated with certain industries like the tourism industry," Evslin told Hawaiʻi Public Radio.

The bill will be introduced at the County Council meeting on Aug. 18.

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