HOUSE OF REPRESENTATIVES

H.B. NO.

809

TWENTY-SIXTH LEGISLATURE, 2011

H.D. 2

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)[,] and (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 that [beginning]:

         (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; [and]

     (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)  Revenues collected under [section]:

         (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.



 

Report Title:

Time Share Units; Transient Accommodations Tax; Increase

 

Description:

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)

 

 

 

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