Proposed Airport Facility Surcharge Increase of 450%

Proposed Airport Facility Surcharge Increase of 450%

Currently there is a $1.00 per day fee on rentals from Hawaii Airport locations payable to the airport. Proposed legislation would increase this to $4.50 per day effective Aug 1 2010.

Car renters in Hawaii already pay 11.1% for a airport concession fee, some $30 million a year. Plus another $3 per day for the rental vehicle surcharge and the current $1 per day airport facility surcharge plus state taxes.

Car rental companies say nobody has to pay the $4.50 a day facility charge because residents and visitors can avoid it by renting their car from a company with offices outside of the airport. This may work in Honolulu but what about visiting relatives on other islands where all the rental locations are at the airport, locals account for 20% of Hawaii car rentals. Honolulu only accounts for around 25% of Hawaii car rentals.

Most likely the facility surcharge will end being increased to $3.50 per day increasing Hawaii car rental costs up to $500 million a year. Final determination will be by the end of the current legislative session in April.