State briefs for June 25

Tax agency boosts
peer-to-peer car rental oversight

HONOLULU (AP) — The Hawaii Department of Taxation has been boosting its monitoring of peer-to-peer car rentals.

The industry operates with the help of apps like Turo, which people can use to rent their personal cars to others.

Department Director Isaac Choy told Hawaii Public Radio that residents should do 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 lines of vacation rentals and everything. Everybody’s trying to make a little extra money,” Choy said. “Peer-to-peer cars, I don’t know if it’s going to be the next big thing, but it’s going to be a thing and we just want to make sure that if you’re renting your car that you’re being really, really fair with any commercial car rental operation.”

The state requires Turo to pay rental car taxes, he said. The person who owns the car must pay a half-a-percent wholesale rate.

Lou Bertuca, the head of government relations for Turo, told The Associated Press rental car companies don’t pay sales taxes on vehicles they purchase in most states, creating what he called a “front-end sales-tax loophole.”

In Hawaii, Bertuca said the companies must pay a 0.5% tax on vehicle purchases, which is significantly less than the more than 4% general excise tax plus paid by Hawaii retail car buyers.

Restrictions ease as Guam nears 75% of adults vaccinated

HAGATNA, Guam (AP) — Guam could be lifting more travel restrictions as its vaccination rate approaches 75% of the adult population.

Guam Gov. Lou Leon Guerrero has been advised by her Physicians’ Advisory Group to consider lifting the U.S. territory’s travel restrictions once 75% of the adult population has been fully vaccinated.

Guam has already lifted travel quarantine and testing rules for fully vaccinated people. Everyone else must be tested within three days of their arrival to avoid quarantine.

Currently, 72% of Guam’s adult population is fully vaccinated, officials report.

The islands could be just days away from 75%.
Source: Hawaii Tribune Herald