Hawaii Tax Agency Strengthens Peer-to-Peer Car Rental Oversight | Hawaii News

HONOLULU (AP) – The Hawaii Department of Taxation has stepped up its oversight of peer-to-peer car rentals.

The industry operates using apps like Turo, which people can use to lease their personal cars to others.

Department head Isaac Choy told Hawaii Public Radio that residents should research before doing so.

One thing to know, he said, is that Hawaii law requires taxes and a rental car surcharge to be collected on every vehicle.

“I think it’s along the vacation rental lines and everything. Everyone is trying to make a little extra money, ”Choy said. “Peer-to-peer cars, I don’t know if it’s gonna be the next big thing, but it’s gonna be a thing and we just want to make sure that if you’re renting your car, you’re really, really fair with any operation. commercial car rental.

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He said the state requires Turo to pay taxes on rental cars. The person who owns the car has to pay a wholesale rate of half a percent.

Choy said owners should also check with their insurance agent or lawyer before posting their vehicle on Turo, as it’s important to know what their liability would be if a renter damages the vehicle or private property.

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Esther L. Steinbach

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