STAND. COM. REP. NO. 2799

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 3017

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 3017, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify that the daily $10 tax on transient accommodations furnished on a complimentary or gratuitous basis includes transient accommodations furnished without tangible industry development or promotional purposes, but does not include transient accommodations furnished as part of a tourism industry promotional or marketing activity.

 

     Written comments in support of this measure were submitted by the Department of Taxation and the Hawaii Tourism Authority.

 

     Your Committee finds that there has been some uncertainty in the tourism industry regarding the taxation of complimentary or gratuitous transient accommodations since the enactment of Act 103, Session Laws of Hawaii 2011.  Your Committee believes that this measure will clarify the specific types of transient accommodations that are considered complimentary or gratuitous, and subject to the daily $10 tax.

 

     Your Committee has amended this measure by:

 

     (1)  Deleting the phrase "furnished without tangible industry development or promotional purposes" from the description of transient accommodations included in the definition of "complimentary or gratuitous basis";

 

     (2)  Clarifying that activities for travel agents are not included in the definition of "complimentary or gratuitous basis"; and

 

     (3)  Making technical nonsubstantive amendments for the purposes of consistency and clarity.

 

     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 S.B. No. 3017, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3017, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair