Another Jab for Maui Visitors? 52% Car Rental Fees Proposed

Maui visitors could soon face a staggering 52 percent in total taxes and fees on rental cars under a new proposal in the Hawaii State Legislature. The plan would add an additional $3 daily surcharge on top of existing fees, potentially making Maui one of the most expensive places in the U.S. to rent a car.

This fee increase to fund the Lahaina Bypass North.

The proposed fee hike is designed to finance revenue bonds covering the construction, operation, and maintenance of the Lahaina Bypass North. The bypass, which would extend from its current terminus at Keawe Street in Lahaina to its planned northern end at Honokōwai, is considered a critical project to alleviate congestion and provide alternative routes in an area that has faced increased traffic demands due to tourism and new residential development.

According to the bill, the project will also benefit emergency response efforts, particularly following the Maui wildfires that exposed vulnerabilities in the region’s transportation infrastructure. The bypass is expected to serve visitors and residents by providing improved access and supporting the Maui economy.

Here is the actual cost of renting a car on Maui.

In addition to the base rental rate charged by car rental companies, visitors renting a car on Maui face these mandatory fees and taxes. Estimated amounts below are based on a $50 per day base rental fee.

• $4.50 daily customer facility charge to fund the operation of rental car facilities.
• 11.1 percent concession recovery fee to cover the cost of doing business within the airport property. (Avg $6.25/day)
• $2.00 daily vehicle registration fee for state-mandated licensing and registration costs.
• $7.00 current state surcharge for additional state revenue.
• $3.00 proposed Maui tour vehicle surcharge.
• 4.712 percent general excise tax on the total cost. (Avg. $3.43/day)

What do all these fees add up to?

These combined charges bring the total estimated daily cost in fees and taxes on a $50 rental to $26.18, excluding optional add-ons such as insurance, additional driver fees, and fuel surcharges. Over a week-long rental, these extra costs add significantly to a visitor’s bill, making car rentals another one of the most significant expenses of a Maui vacation.

Why this matters to visitors.

For Hawaii travelers, the proposed increase in rental car fees is just one of several simultaneously rising costs associated with visiting the islands. From sky-high accommodations and a range of hotel and vacation rental fees to airfare and rising parking costs, travelers are already feeling the pinch. If approved, this fee hike could add to significant expenses, particularly for stays on Maui where rental cars are typically considered a necessity.

While the amount of this proposed increase may seem minimal to some, it represents a growing concern about the cumulative cost of visiting.

With the proposed $3 increase, total fees and taxes on a $50 rental in Maui would represent over 52 percent of the base cost. This places Hawaii among the most expensive locations for rental cars in the U.S. in terms of taxes and fees. Hawaii’s high fees, driven by surcharges, airport concession fees, and state and now county taxes, continue to outpace many mainland destinations, raising concerns about Hawaii’s affordability for visitors.

Will the fee hike pass, and what do those for and against stay?

The bill has been introduced but has yet to be referred to committees. Similar proposals have faced pushback, with outspoken rental car companies arguing that additional fees could damage their business by driving potential visitors away or encouraging them to seek alternatives, including Uber, Lyft, and public transportation, including the bus. The Maui bus, however, doesn’t accommodate typical visitor luggage.

Proponents say the fee is a fair way to fund critical infrastructure without further burdening local taxpayers. They highlight that rental car users, the majority of whom are visitors, significantly contribute to Maui’s road congestion and should play a greater role in funding necessary improvements.

Visitor reactions and potential impact.

Many visitors have expressed frustration in comments with rising costs in Hawaii, and this proposal is likely to generate further debate. Some say that investing in infrastructure this way is necessary to support growing tourism. In contrast, others believe the state should find alternative funding methods that do not disproportionately impact visitors renting cars.

What’s next for the proposal.

If Senate Bill 1659 moves forward, it will face committee hearings, potential amendments, and votes in both the Senate and House before potentially being enacted. Lawmakers will likely weigh public opinion through comments and the economic impact on Maui’s tourism sector before making a final decision.

Your comments are welcome!

SB1659_