Report Title:

TAT; Vacation Rentals; Bed and Breakfast

Description:

Requires the department of taxation to review the forms and process relating to collecting the TAT from vacation rentals and bed and breakfast establishments and requires the department to report the TAT revenues received from these types of establishments.

THE SENATE

S.B. NO.

1863

TWENTY-THIRD LEGISLATURE, 2005

 

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. The legislature finds that the State needs a better reporting system with respect to transient accommodations tax revenues collected from residential properties. Better reporting will enable the State to provide a more comprehensive tax system that is more equitable and cost effective.

The purpose of this Act is to require the department of taxation to review the forms and process relating to the collection of the transient accommodations tax from vacation rentals and bed and breakfast establishments and require the department to report the transient accommodations tax revenues received from these types of establishments.

SECTION 2. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237D- Reporting. The department shall report annually to the legislature on revenues received under this chapter from owners of residential properties subject to this chapter that operate vacation rentals (owner does not reside on property) and bed and breakfast establishments (owner resides on property). For the purposes of this section, the department shall establish other criteria to identify a vacation rental and a bed and breakfast establishment."

SECTION 3. The department of taxation shall review the forms and process for the collection of the transient accommodations tax and include separate categories of collection for residential properties utilized as vacation rental and bed and breakfast establishments.

The department of taxation shall report the results of its review and any findings and recommendations to the legislature, twenty days prior to the convening of the regular session of 2006.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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