STAND. COM. REP. NO. 256

Honolulu, Hawaii

, 2005

RE: H.B. No. 997

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Tourism & Culture, to which was referred H.B. No. 997 entitled:

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX,"

begs leave to report as follows:

The purpose of this bill is to increase funds available for tourism-related activities and infrastructure by increasing the allocation of transient accommodations tax (TAT) collections to the Tourism Special Fund to 35.4 percent and increasing the limit on funds deposited in the Convention Center Enterprise Special Fund to $35,000,000. In addition, this bill:

(1) Repeals the TAT Trust Fund;

(2) Repeals the existing allocation of TAT collections to the State Parks Special Fund (SPSF) and the Special Land and Development Fund (SLDF); and

(3) Distributes 2.5 percent of TAT collections as follows:

(1) Thirty-six percent to be deposited in SPSF;

(2) Four percent to be deposited in SLDF; and

(3) Sixty percent to be deposited into the general fund.

The Hawaii Tourism Authority supported this bill. The Department of Land and Natural Resources and the Department of Business, Economic Development, and Tourism supported the intent of this measure. The Department of Taxation and the Department of Budget and Finance opposed this bill. The Tax Foundation of Hawaii offered comments.

As affirmed by the record of votes of the members of your Committee on Tourism & Culture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 997 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Tourism & Culture,

 

____________________________

JERRY L. CHANG, Chair