Bill Text: HI HB2314 | 2012 | Regular Session | Amended
Bill Title: Transient Accommodations Tax; Convention Center Enterprise Special Fund
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2012-07-10 - (S) Act 243, 7/6/2012 (Gov. Msg. No. 1346). [HB2314 Detail]
Download: Hawaii-2012-HB2314-Amended.html
STAND. COM. REP. NO. 2983
Honolulu, Hawaii
RE: H.B. No. 2314
H.D. 1
S.D. 1
Honorable Shan S. Tsutsui
President of the Senate
Twenty-Sixth State Legislature
Regular Session of 2012
State of Hawaii
Sir:
Your Committee on Tourism, to which was referred H.B. No. 2314, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO THE TRANSIENT ACCOMMODATIONS TAX,"
begs leave to report as follows:
The purpose and intent of this measure is to provide for the allocation of transient accommodations tax revenues to the convention center enterprise special fund on a fiscal year basis.
Your Committee received testimony in support of this measure from the Department of Taxation and Hawaii Tourism Authority. Your Committee received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.
Your Committee finds that the amount of the transient accommodations tax revenue allocated for the convention center enterprise special fund is limited to $33,000,000 per calendar year. A problem arises as a result of the limits on the deposits into the special fund because the limit is applied on a calendar year basis, but expenditures from the fund are made on a fiscal year basis. In some years, the $33,000,000 limit is achieved in the third month of the fiscal year, October, and no further revenues are deposited into the fund until the new calendar year. This results in a shortfall in the fund's ability to pay the debt service for the convention center.
This measure will address the problem by providing for the receipt of transient accommodations tax revenues by the convention center enterprise special fund in each month during 2012 and the early months of 2013.
Your Committee has amended this measure by authorizing unexpended and unencumbered monies determined by the Hawaii Tourism Authority to be in excess of any unencumbered reserve remaining in the convention center enterprise special fund at the close of fiscal year 2011-2012 to be expended by the Authority for repair and maintenance projects of the Hawaii Convention Center.
As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2314, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2314, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Tourism,
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____________________________ DONNA MERCADO KIM, Chair |
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