Bill Text: HI SB2697 | 2018 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-24 - Referred to ETT, WAM. [SB2697 Detail]
Download: Hawaii-2018-SB2697-Introduced.html
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THE SENATE |
S.B. NO. |
2697 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. On March 17, 2015, the
Hawaii supreme court held in Travelocity.com,
L.P. v. Director of Taxation, 135 Hawaii 88, 346 P.3d 157 (2015) that
online travel companies are not subject to Hawaii's transient accommodations
tax as operators of transient accommodations.
As
a result of the court's decision, the amount of transient accommodations tax
for a guest room differs based on the method of booking. If a guest room is booked directly through a
hotel, the transient accommodations tax is imposed on the gross amount charged
to the customer. If, however, a guest
room is booked through an online travel company, the transient accommodations
tax is only imposed on the net amount that the hotel receives from the online
travel company for the room.
The
purpose of this Act is to create parity in the taxation of transient accommodations
by imposing the transient accommodations tax on the portion kept by the online
travel companies. As a result, the
transient accommodations tax will be imposed on the gross proceeds collected
from the customer regardless of whether the guest room is booked directly
through a hotel or through an online travel company.
SECTION 2. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237D- Certificate of registration for travel
agency and tour packager. Each
travel agency or tour packager, as a condition precedent to entering into an
arrangement to furnish transient accommodations at noncommissioned negotiated
contract rates, shall register with the director. The travel agency or tour packager shall make
a one-time payment of $15 for each registration, upon receipt of which the
director shall issue a certificate of registration in a form as the director
determines, attesting that the registration has been made. The registration shall not be transferable and
shall be valid only for the travel agency or tour packager in whose name it is
issued.
The
registration shall be effective until canceled in writing. Any application for the reissuance of a
previously canceled registration identification number shall be regarded as a
new registration application and shall be subject to the payment of the
one-time registration fee. The director
may revoke or cancel any license issued under this chapter for cause as
provided by rule under chapter 91."
SECTION 3. Section 237D-1, Hawaii Revised Statutes, is amended by amending the definition of "gross rental" and "gross rental proceeds" to read as follows:
""Gross
rental" or "gross rental proceeds" means the gross receipts,
cash or accrued, of the taxpayer received as compensation for the furnishing of
transient accommodations or entering into arrangements to furnish transient accommodations
and the value proceeding or accruing from the furnishing of [such] transient
accommodations or entering into arrangements to furnish transient accommodations
without any deductions on account of the cost of property or services sold, the
cost of materials used, labor cost, taxes, royalties, interest, discounts, or
any other expenses whatsoever. Where
transient accommodations are furnished through arrangements made by a travel
agency or tour packager at noncommissionable negotiated contract rates and the
gross income is divided between the operator of transient accommodations on the
one hand and the travel agency or tour packager on the other hand, gross rental
or gross rental proceeds means the respective portion allocated or distributed
to each person, and no more. Every
taxpayer shall be presumed to be dealing on a cash basis unless the taxpayer
proves to the satisfaction of the department of taxation that the taxpayer is
dealing on an accrual basis and the taxpayer's books are so kept, or unless the
taxpayer employs or is required to employ the accrual basis for the purposes of
the tax imposed by chapter 237 for any taxable year in which event the taxpayer
shall report the taxpayer's gross income for the purposes of this chapter on
the accrual basis for the same period.
The words "gross
rental" or "gross rental proceeds" shall not be construed to include
the amounts of taxes imposed by chapter 237 or this chapter on operators of
transient accommodations, travel agencies, and tour packagers and passed
on, collected, and received from the consumer as part of the receipts received
as compensation for the furnishing of transient accommodations[.] or
entering into arrangements to furnish transient accommodations. [Where transient accommodations are
furnished through arrangements made by a travel agency or tour packager at
noncommissionable negotiated contract rates and the gross income is divided
between the operator of transient accommodations on the one hand and the travel
agency or tour packager on the other hand, gross rental or gross rental
proceeds to the operator means only the respective portion allocated or
distributed to the operator, and no more.] For purposes of this definition, where the
operator maintains a schedule of rates for identifiable groups of individuals,
such as kamaainas, upon which the accommodations are leased, let, or rented,
gross rental or gross rental proceeds means the receipts collected and received
based upon the scheduled rates and recorded as receipts in its books and
records."
SECTION 4. Section 237D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Every operator, travel agency or tour packager licensed pursuant to section 237D- , shall pay to the State the tax imposed by subsection (a) as provided in this chapter."
SECTION 5. Section 237D-15, Hawaii Revised Statutes, is amended to read as follows:
"§237D-15 Application of tax. (a) The tax imposed by this chapter shall be in addition to any other taxes imposed by any other laws of the State, except as otherwise specifically provided in this chapter; provided that if it be held by any court of competent jurisdiction that the tax imposed by this chapter may not legally be imposed in addition to any other tax or taxes imposed by any other law or laws with respect to the same property or the use thereof, then this chapter shall be deemed not to apply to such property and the use thereof under the specific circumstances, but the other laws shall be given full effect with respect to such property and use.
(b) In order to determine if the tax under this chapter is to be levied, assessed, and collected upon transient accommodations the following presumptions shall control.
(1) If a person lets a transient accommodation for less than one hundred eighty consecutive days, it shall be presumed that the accommodation furnished is for a transient purpose.
(2) If a person lets a transient accommodation for one hundred eighty days or more, there is no presumption one way or another as to the purpose for which the accommodation is furnished.
The operator shall have the burden of proving to the department whether an accommodation is not being furnished for a transient purpose. If the department is satisfied that an accommodation is not furnished for a transient purpose, then the department shall not levy any tax under this chapter. The department shall adopt rules to implement this section.
(c) Except as otherwise provided, this chapter shall apply to a travel agency or tour packager who enters into an agreement to furnish transient accommodations at noncommissioned negotiated contract rates in the same manner as it applies to an operator."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2018.
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INTRODUCED BY: |
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Report Title:
Transient Accommodations Tax; Travel Agencies and Tour Packagers
Description:
Imposes registration requirements and transient accommodations tax on travel agencies and tour packagers that enter into arrangements to furnish transient accommodations at noncommissioned negotiated contract rates on their share of the proceeds.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
