STAND. COM. REP. NO.

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1744

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1744, H.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to temporarily suspend the distribution of transient accommodation tax revenues to the counties from July 1, 2009, until June 30, 2015.

 

     Testimony in support of this measure was submitted by three individuals.  Testimony opposed to this measure was submitted by one state agency, twenty-one county agencies and public officials, sixteen private organizations, and thirty individuals.  Comments on this measure were submitted by one private organization and sixteen individuals.  The written testimony and comments may be reviewed on the Legislature's website.

 

     Your Committee notes the enormous deficit the State is facing in the coming years due to expected revenue shortfalls.  With the present fiscal crisis, the State must explore all available avenues to meet the constitutional mandate of a balanced budget.

 

     Accordingly, your Committee has amended this measure by permanently repealing any distribution of the transient accommodation tax, imposed pursuant to section 237D-2, Hawaii Revised Statutes, to the various counties effective July 1, 2010.  However, your Committee realizes that the counties are dependent upon their portions of the transient accommodation tax and, therefore, has further amended this measure by authorizing each county to impose, by ordinance, starting on January 1, 2010, a surcharge on the transient accommodation tax, not to exceed five per cent.  Finally, your Committee has changed the effective date to July 1, 2046, to facilitate further discussion on this measure.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1744, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1744, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DONNA MERCADO KIM, Chair