Report Title:

Transient Accommodations Tax

Description:

Repeals the transient accommodations tax (TAT) trust fund and the distribution of TAT revenues into it. Changes the TAT revenues deposited into the tourism special fund to 36.7 per cent. Removes the cap on deposits into the convention center enterprise special fund. (HB2061 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2061

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TRANSIENT ACCOMMODATIONS TAX.

 

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

SECTION 1. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Revenues collected under this chapter shall be distributed as follows:

(1) 17.3 per cent of the revenues collected under this chapter shall be deposited into the convention center enterprise special fund established under section 201B-8; [provided that beginning January 1, 2002, if the amount of the revenue collected under this paragraph exceeds $31,000,000 in any calendar year, revenues collected in excess of $31,000,000 shall be deposited into the general fund;]

(2) [32.6] 36.7 per cent of the revenues collected under this chapter shall be deposited into the tourism special fund established under section 201B-11 for tourism promotion and visitor industry research; provided [that beginning on July 1, 2002:

(A) If the amount of revenues deposited into the tourism special fund exceeds $62,292,000 in any fiscal year, of the first $1,000,000 in revenues deposited in excess of $62,292,000:] that $1,000,000 of the revenues deposited into the tourism special fund shall be distributed as follows:

[(i)] (A) Ninety per cent shall be deposited into the state parks special fund established in section 184-3.4; and

[(ii)] (B) Ten per cent shall be deposited into the special land and development fund established in section 171-19 for the Hawaii statewide trail and access program;

provided that the total amount deposited into the state parks special fund and to the special land and development fund for the Hawaii statewide trail and access program shall not exceed $1,000,000 in any fiscal year[.]; and

(3) 44.8 per cent of the revenues collected under this chapter shall be transferred as follows:

(A) Kauai county shall receive 14.5 per cent[,];

(B) Hawaii county shall receive 18.6 per cent[, city];

(C) City and county of Honolulu shall receive 44.1 per cent[,]; and

(D) Maui county shall receive 22.8 per cent;

and

(4) [5.3] 1.2 per cent of the revenues collected under this chapter shall be deposited into the [transient accommodations tax trust fund established under section 237D-5.5.] general fund.

All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection, and shall be kept by the state director of finance in special accounts for distribution in quarterly allotments on the first days of each January, April, July, and October, as provided in this subsection."

SECTION 2. Section 237D-5.5, Hawaii Revised Statutes, is repealed.

["[237D-5.5] Transient accommodations tax trust fund. (a) There is established in the state treasury the transient accommodations tax trust fund to be administered by the director of finance, into which shall be deposited the revenues prescribed by section 237D-6.5(b).

(b) All investment earnings from moneys in the trust fund shall be credited to the general fund.

(c) The purpose of the trust fund is to serve as a holding account for transient accommodations tax revenues to supplement shortfalls in the tourism special fund, if the tourism special fund does not receive $63,292,000 in transient accommodations tax revenues as provided in this section.

(d) If the amount of transient accommodations tax revenues distributed to the tourism special fund pursuant to section 237D-6.5(b)(2) is projected by the director of finance to be less than $63,292,000 in the aggregate in a fiscal year, the director of finance, at such times and in such amounts that the director shall reasonably determine, shall deposit moneys from the trust fund to the tourism special fund to provide the tourism special fund with a minimum of $63,292,000 in transient accommodations tax revenues in the aggregate for a fiscal year; provided that any deposit from the trust fund to the tourism special fund shall be limited to the moneys available in the trust fund.

(e) If the tourism special fund receives less than $63,292,000 in transient accommodations tax revenues in the aggregate for a fiscal year, even after receiving moneys from the trust fund, the shortfall shall be noncumulative and shall not represent a claim against future distributions from the trust fund.

(f) No deposit from the trust fund to the tourism special fund shall be made that would cause the tourism special fund to receive more than $63,292,000 in transient accommodations tax revenues in the aggregate for a fiscal year.

(g) Any moneys remaining in the trust fund at the end of each fiscal year shall be credited to the general fund; provided that, upon receipt by the tourism special fund of at least $63,292,000 in transient accommodations tax revenues in the aggregate during the course of a fiscal year, the moneys in the trust fund shall thereafter be credited to the general fund."]

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2004.