REPORT TITLE:
Transient Accommodations Tax


DESCRIPTION:
Authorizes a county transient accommodations tax.  Lowers the
rate of the state transient accommodations tax.  Eliminates
distribution of state transient accommodations revenues to
counties.  Effective 7/1/02.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           53
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 46, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "46-     County transient accommodations tax.  (a)  Each
 
 5 county may establish a transient accommodations tax at a rate
 
 6 prescribed by ordinance.  Each county shall establish the
 
 7 transient accommodations tax by ordinance; provided that each
 
 8 county has conducted a public hearing on the proposed ordinance.
 
 9 Notice of the public hearing shall be published in a newspaper of
 
10 general circulation within the county at least twice within a
 
11 period of thirty days immediately preceding the date of the
 
12 hearing.
 
13      (b)  Each county shall notify the director of taxation
 
14 within ten days after the county has adopted a county transient
 
15 accommodations tax ordinance, and the director of taxation shall
 
16 levy, assess, collect, and otherwise administer the county
 
17 transient accommodations tax beginning on January 1, of the next
 
18 taxable year and for taxable years thereafter or until repealed.
 

 
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 1      SECTION 2.  Chapter 237D, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "237D-     County transient accommodations; administration.
 
 5 (a)  The county transient accommodations tax, upon the adoption
 
 6 of county ordinances under section 46-   , shall be levied,
 
 7 assessed, and collected as provided in this chapter.  All
 
 8 provisions of this chapter shall apply to the county transient
 
 9 accommodations tax; and with respect to the county transient
 
10 accommodations tax, the director shall have all the rights and
 
11 powers provided under this chapter.  The director shall determine
 
12 through apportionment or other means, that portion of the county
 
13 transient accommodations tax attributable to transient
 
14 accommodations furnished in each county.
 
15      (b)  The director of taxation shall revise the tax return
 
16 forms to provide for the clear and separate designation of the
 
17 imposition and payment of the county transient accommodations
 
18 tax.
 
19      The taxpayer shall designate the taxation district to which
 
20 the county transient accommodations tax is assigned in accordance
 
21 with rules adopted by the director of taxation under chapter 91.
 
22 The taxpayer shall file a schedule with the taxpayer's periodic
 
23 and annual county transient accommodations tax summarizing the
 

 
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                                     S.B. NO.           53
                                                        
                                                        

 
 1 amount of taxes assigned to each taxation district.
 
 2      The penalties provided by section 231-39 shall be imposed on
 
 3 any county transient accommodations tax due."
 
 4      SECTION 3.  Section 237D-2, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "237D-2 Imposition and rates.(a)  There is levied and
 
 7 shall be assessed and collected each month a tax of:
 
 8      (1)  Five per cent for the period beginning on January 1,
 
 9           1987, to June 30, 1994;
 
10      (2)  Six per cent for the period beginning July 1, 1994, to
 
11           December 31, 1998; [and]
 
12      (3)  7.25 per cent for the period beginning on January 1,
 
13           1999, [and thereafter;] to December 31, 2001; and
 
14      (4)  3.75 per cent for the period beginning on January 1,
 
15           2002, and thereafter;
 
16 on the gross rental or gross rental proceeds derived from
 
17 furnishing transient accommodations.
 
18      (b)  Every operator shall pay to the State the tax imposed
 
19 by subsection (a) as provided in this chapter.
 
20      (c)  There is levied and shall be assessed and collected
 
21 each month on the occupant of a resort time share vacation unit,
 
22 a transient accommodations tax of:
 

 
 
 
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 1      (1)  7.25 per cent on the fair market rental value[.] until
 
 2           December 31, 2001; and
 
 3      (2)  3.75 per cent on the fair market rental value from
 
 4           January 1, 2002, and thereafter.
 
 5      (d)  Every plan manager shall be liable for and pay to the
 
 6 State the transient accommodations tax imposed by subsection (c)
 
 7 and any county transient accommodations tax enacted under
 
 8 sections 46-    and 237D-    as provided in this chapter.  Every
 
 9 resort time share vacation plan shall be represented by a plan
 
10 manager who shall be subject to this chapter."
 
11      SECTION 4.  Section 237-6.5, Hawaii Revised Statutes, is
 
12 amended by amending subsection (b) to read as follows:
 
13      "(b)  [For the fiscal year beginning July 1, 1994, and for
 
14 each fiscal year thereafter, until December 31, 1998, revenues
 
15 collected under this chapter shall be distributed as follows:
 
16      (1)  One-sixth of the revenues collected under this chapter
 
17           shall be deposited into the convention center capital
 
18           special fund established under section 206X-10.5;
 
19      (2)  Of the remaining revenues, five per cent shall be
 
20           retained by the State; and
 
21      (3)  Of the remainder, Kauai county shall receive 14.5 per
 
22           cent; Hawaii county shall receive 18.6 per cent; city
 

 
 
 
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 1           and county of Honolulu shall receive 44.1 per cent; and
 
 2           Maui county shall receive 22.8 per cent.]
 
 3      Beginning on January 1, 1999, and for each fiscal year
 
 4 thereafter, until December 31, 2001, revenues collected under
 
 5 this chapter shall be distributed as follows:
 
 6      (1)  17.3 per cent of the revenues collected under this
 
 7           chapter shall be deposited into the convention center
 
 8           capital special fund established under section
 
 9           206X-10.5;
 
10      (2)  37.9 per cent of the revenues collected under this
 
11           chapter shall be deposited into the tourism special
 
12           fund established under section 201B-11;
 
13      (3)  44.8 per cent of the revenues collected under this
 
14           chapter shall be transferred as follows:  Kauai county
 
15           shall receive 14.5 per cent; Hawaii county shall
 
16           receive 18.6 per cent, city and county of Honolulu
 
17           shall receive 44.1 per cent, and Maui county shall
 
18           receive 22.8 per cent.
 
19      Beginning on January 1, 2002, revenues collected under this
 
20 chapter shall be distributed as follows:
 
21      (1)  One-third of the revenues collected under this chapter
 
22           shall be deposited into the convention center capital
 

 
 
 
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 1           special fund established under section 206X-10.5; and
 
 2      (2)  Two-thirds of the revenues collected under this chapter
 
 3           shall be deposited into the tourism special fund
 
 4           established under section 201B-11;
 
 5      All transient accommodations taxes shall be paid into the
 
 6 state treasury each month within ten days after collection, and
 
 7 shall be kept by the state director of finance in special
 
 8 accounts for distribution as provided in this subsection.
 
 9      (c)  On or before January or July 1 of each year or after
 
10 the disposition of any tax appeal with respect to an assessment
 
11 for periods after June 30, 1990, the state director of finance
 
12 shall compute and pay the amount due as provided [in subsection
 
13 (b)] by county ordinance to the director of finance of each
 
14 county to become a general realization of the county expendable
 
15 as such, except as otherwise provided by law."
 
16      SECTION 5.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 6.  This Act, upon approval, shall take effect on
 
19 January 1, 2002.
 
20 
 
21                           INTRODUCED BY:  _______________________