Report Title:

Bed and Breakfast Homes; Counties; GET; TAT; Homeless

Description:

Requires counties with a population of 500,000 or more to allow the operation of, and register bed and breakfast establishments that would not otherwise qualify for operation under county regulation; provided that the home is in existence as of 01/01/04; the home is registered with the county after 06/30/04, but before 10/01/04; and the owners of the homes acquire a GET license and a TAT certificate. The dedicated tax revenue would be used to assist the homeless.

 

THE SENATE

S.B. NO.

2229

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO BED AND BREAKFAST HOMES.

 

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

SECTION 1. The legislature finds that the local homeless population continues to grow in Hawaii. Every day, shelters must turn away people, including small children, because the State cannot afford to expand its assistance to the homeless.

The legislature also finds that the local bed and breakfast home industry represents an untapped source of tax revenue. Presently, many bed and breakfast homes are not sanctioned by the county and consequently, are not paying any general excise tax or transient accommodations tax as required by law.

Finally, the legislature finds that by requiring certain counties to sanction illegally operating bed and breakfast homes, in exchange for requiring owners of such bed and breakfast homes to pay the general excise tax and the transient accommodations tax, this Act will provide peace-of-mind and legitimacy to bed and breakfast owners and provide the State with untapped tax revenue to assist the homeless population.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- Bed and breakfast homes. Notwithstanding any other law to the contrary, every county with a population of five hundred thousand or more shall register and allow the operation of any bed and breakfast home in its jurisdiction that would not otherwise qualify under county regulation; provided that:

(1) The bed and breakfast home is in existence as of January 1, 2004;

(2) The bed and breakfast home is registered with the county after June 30, 2004, but before October 1, 2004; and

(3) The owner of the bed and breakfast home acquires a general excise tax license under chapter 237 and a certificate of registration under chapter 237D.

For the purposes of this section and sections 237-31 and 237D-6.5, "bed and breakfast homes" means a use in which overnight accommodations are provided to guests for compensation, for periods of less than thirty days, in the same detached dwelling as that occupied by an owner, lessee, operator, or proprietor of the detached dwelling."

SECTION 3. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"§201G- Homeless trust account. There is created a homeless trust account to be administered by the corporation under part IV of chapter 201G. Funds received pursuant to sections 237-31(4) and 237D-6.5(b) shall be deposited into the trust account and used exclusively by the corporation to fulfill its duties to the homeless under section 201G-452."

SECTION 4. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"§237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; [and]

(3) A sum, not to exceed the amount necessary to meet the obligations of the integrated tax information management systems performance-based contract may be retained and deposited in the state treasury to the credit of the integrated tax information management systems special fund. The sum retained by the director of taxation for deposit to the integrated tax information [[]management[]] systems special fund for each fiscal year shall be limited to amounts appropriated by the legislature. This paragraph shall be repealed on July 1, 2004[.]; and

(4) The sum from all general excise tax revenues realized by the State and collected by owners of "bed and breakfast homes", as that term is defined under section 46- and who are registered pursuant to that section after June 30, 2004, but before October 1, 2004, shall be deposited into the homeless trust account under section 201G- ."

SECTION 5. 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 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:

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

(ii) 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;

(3) 44.8 per cent of the revenues collected under this chapter shall be transferred as follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent; and

(4) 5.3 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.

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 as provided in this subsection[.]; provided that all transient accommodations taxes collected by owners of "bed and breakfast homes", as that term is defined under section 46- and who are registered pursuant to that section after June 30, 2004, but before October 1, 2004, shall be deposited into the homeless trust account under section 201G-  ."

SECTION 6. For the purposes of this Act, any county under section 1 of this Act, the housing and community development corporation of Hawaii under section 2 of this Act, and the director of taxation under section 3 of this Act, may adopt rules for their respective sections, pursuant to chapter 91, to effectuate this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on June 30, 2004.

INTRODUCED BY:

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