Bill Text: HI SB1194 | 2013 | Regular Session | Amended

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Bill Title: Transient Accommodations Tax

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-06-25 - Act 161, on 6/21/2013 (Gov. Msg. No. 1264). [SB1194 Detail]

Download: Hawaii-2013-SB1194-Amended.html

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STAND. COM. REP. NO. 703

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1194

       S.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1194, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to adjust the transient accommodations tax rate and the disposition of the transient accommodations tax revenues.

 

More specifically, this measure:

 

(1)  Makes permanent the transient accommodations tax rate of 9.25 per cent;

 

(2)  Eliminates the daily transient accommodations tax for complimentary accommodations;

 

(3)  Reduces the percentages of transient accommodations tax revenues distributed to the convention center enterprise special fund, the tourism special fund, and the counties; and

 

(4)  Repeals the temporary ceiling of $71,000,000 in transient accommodations tax revenues per fiscal year distributed to the tourism special fund until June 30, 2015.

 

     Your Committee received written comments in support of this measure from the Department of Taxation and Starwood Hotels and Resorts.

 

     Your Committee received written comments in opposition to this measure from the Office of the Mayor of the County of Hawaii, the Office of the Mayor of the County of Maui, the Department of Budget and Fiscal Services of the City and County of Honolulu, the Council Chair of the County Council of Maui, three council members of the County Council of Hawaii, the Hawaii Council of Mayors, the Hawaii State Association of Counties, and one individual.

 

     Your Committee received written comments on this measure from the Department of Budget and Finance, the Office of the Mayor of the City and County of Honolulu, and the Tax Foundation of Hawaii.

 

     Your Committee finds that the increased revenues from the present tax rate will continue to effectively fund the activities of the Hawaii Tourism Authority, which markets the State world-wide and strengthens the State's tourism industry.

 

     Your Committee has amended this measure by:

 

(1)  Retaining the temporary ceiling on transient accommodations tax revenues per fiscal year distributed to the tourism special fund but changing the amount of the ceiling to an unspecified figure;

 

(2)  Changing to an unspecified amount, the total amount of the transient accommodations tax revenues, and the percentages of the total amount of the transient accommodations tax revenues from the tourism special fund to be deposited into the state parks special fund and the special land and development fund; and

 

(3)  Changing the effective date to July 1, 2050, in order to facilitate continued discussion on the measure

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1194, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1194, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

		____________________________ DAVID Y. IGE, Chair