HOUSE OF REPRESENTATIVES
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to temporarily increase the transient accommodations tax rate on resort time share vacation units and to deposit the amount collected from the increase into the general fund. The rate on resort time share vacation units is increased to the same rate as that applicable to transient accommodation units. The legislature finds that this increase achieves fairness in the application of the transient accommodations tax.
The legislature notes that this Act does not amend the definition of "fair market rental value" of a resort time share vacation unit.
SECTION 2. Section 237D-2, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:
"(d) For resort time share vacation units:
(1) There is levied and shall be assessed and
collected each month[
,] on the occupant of a resort time share vacation
unit, a transient accommodations tax of 7.25 per cent on the fair market rental
value[ .]; and
(2) For the period beginning July 1, 2011, to June 30, 2015, there is levied and shall be assessed and collected each month on the occupant of a resort time share vacation unit an additional 2.00 per cent on the fair market rental value."
SECTION 3. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Revenues collected under this
chapter, except for revenues collected under section 237D-2(b)[
(d)(2), shall be distributed as follows, with the excess revenues to be
deposited into the general fund:
(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 $33,000,000 in any calendar year, revenues collected in excess of $33,000,000 shall be deposited into the general fund;
(2) 34.2 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
(A) Beginning on July 1, 2002, of the first $1,000,000 in revenues deposited:
(A)] (i) Ninety
per cent shall be deposited into the state parks special fund established in
section 184-3.4; and
(B)](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 of]
(B) Of the 34.2 per cent, 0.5
per cent shall be transferred to a sub-account in the tourism special fund to
provide funding for a safety and security budget, in accordance with the Hawaii
tourism strategic plan 2005-2015; [
provided further that of]; and
(C) Of the revenues remaining in
the tourism special fund after revenues have been deposited as provided in this
paragraph and except for any sum authorized by the legislature for expenditure
from revenues subject to this paragraph, beginning July 1, 2007, funds shall be
deposited into the tourism emergency trust fund, established in section
201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the
tourism emergency trust fund; [
(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
(4) Revenues collected under [
(A) Section 237D-2(b); and
(B) Section 237D-2(d)(2) from July 1, 2011, to June 30, 2015;
shall be deposited into the 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 as provided in this subsection."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2011, and shall be repealed on June 30, 2015; provided that the underlying provisions of sections 237D-2(d) and 237D-6.5(b), Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 2011.
Time Share Units; Transient Accommodations Tax; Increase
Temporarily increases from July 1, 2011, to June 30, 2015, the transient accommodations tax rate on time share units by two percent. Effective July 1, 2011. (HB809 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.