STAND. COM. REP. NO. 1216
RE: S.B. No. 519
Honorable Joseph M. Souki
Speaker, House of Representatives
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 519, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
beg leave to report as follows:
(1) Extend for one additional year, the changes adopted by Act 326, Session Laws of Hawaii 2012, which, among other things, established local contact and informational requirements for transient accommodations;
(2) Require the Department of Taxation to submit an annual report to the Legislature on the implementation of Act 326, Session Laws of Hawaii 2012;
(3) Authorize the Department of Taxation to enforce civil penalties for operators and plan managers who fail to display certificates of registration and registration identification numbers as required by section 437D-4, Hawaii Revised Statutes; and
(4) Authorize the deposit of monetary fines into the Tax Administration Special Fund.
The Hawaii Lodging & Tourism Association; Hawaii Association of Vacation Rental Managers; Rental By Owner Awareness Association; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Outrigger Enterprises Group; Boundless Hawaii, LLC; Abbey Vacation Rentals; Hawaiian Dream Properties; Kohala Coast Properties Inc.; Sullivan Properties, Inc.; SunQuest Vacations; Timberline Land Co. HI, LLC; Kailua Neighborhood Board; and numerous individuals supported this measure. The Department of Taxation; Public Utilities Commission; Maui Hotel & Lodging Association; Condominium Rentals Hawaii; South Kohala Management; Waikaloa Vacation Rental Management; and Captain Cook Real Estate commented on this measure.
Your Committees have amended this measure by:
(1) Adding new definitions for "transient" and "transient accommodations broker";
(2) Clarifying the definition of "transient accommodations";
(3) Clarifying the process for the displaying of registration identification numbers by those that offer transient accommodations;
(4) Clarifying the definition of "local contact" in Act 326, Session Laws of Hawaii 2012, to not contravene the Landlord Tenant and Real Estate Codes;
(5) Changing the effective date to July 1, 2112, to encourage further discussion; and
(6) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 519, S.D. 2, H.D. 1, as amended herein, and recommend that it be referred to the Committee on Finance, in the form attached hereto as S.B. No. 519, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,
KARL RHOADS, Chair
ANGUS L.K. McKELVEY, Chair