HOUSE OF REPRESENTATIVES
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII
A BILL FOR AN ACT
relating to transient accommodations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. A recent study showed that there are approximately twenty two thousand vacation rentals around the State, most of which are illegal. The legislature finds that some of these vacation rentals may have an impact on residential communities, especially those without adequate infrastructure to accommodate additional tourists.
Some counties, such as the city and county of Honolulu, are debating whether to permit or restrict vacation rentals to address their adverse impact on communities. The legislature finds that while counties determine how to address the growth of illegal vacation rentals, the State should collect transient accommodations tax revenue from them to help pay for additional community services associated with vacation rentals and reduce the tax burden on local residents.
The legislature further finds that counties need assistance with identifying and keeping track of illegal vacation rentals to obtain accurate data to help the counties decide how to handle the growth of illegal vacation rentals.
Accordingly, the purpose of this part is to reduce the tax burden on local residents and assist the counties with identifying illegal vacation rentals by:
(1) Assessing the transient accommodations tax on single family dwellings used as vacation rentals to help pay for additional, associated community services; and
(2) Requiring the department of taxation to create and manage a public, online database of all operators of vacation rentals that receive a certificate of registration for transient accommodations tax purposes, and subject to penalties for noncompliance.
SECTION 2. Section 237D-1, Hawaii Revised Statutes, is amended by amending the definition of "transient accommodations" to read as follows:
""Transient accommodations" means the furnishing of a room, apartment, suite, single family dwelling, or the like which is customarily occupied by a transient for less than one hundred eighty consecutive days for each letting by a hotel, apartment hotel, motel, condominium property regime or apartment as defined in chapter 514A or unit as defined in chapter 514B, cooperative apartment, or rooming house that provides living quarters, sleeping, or housekeeping accommodations, or other place in which lodgings are regularly furnished to transients for consideration."
SECTION 3. Section 237D-4, Hawaii Revised Statutes, is amended to read as follows:
"§237D-4 Certificate of registration[
public database. (a) Each operator or plan manager as a condition
precedent to engaging or continuing in the business of furnishing transient
accommodations or in business as a resort time share vacation plan shall
register with the director the name and address of each place of business
within the State subject to this chapter. The operator or plan manager shall
make a one-time payment as follows:
(1) $5 for each registration for transient accommodations consisting of one to five units;
(2) $15 for each registration for transient accommodations consisting of six or more units; and
(3) $15 for each resort time share vacation plan within the State;
upon receipt of which the director shall issue a certificate of registration in such form as the director determines, attesting that the registration has been made. The registration shall not be transferable and shall be valid only for the operator or plan manager in whose name it is issued and for the transaction of business at the place designated therein.
The registration, or in lieu thereof a notice stating where the registration may be inspected and examined, shall at all times be conspicuously displayed at the place for which it is issued. Acquisition of additional transient accommodation units after payment of the one-time fee shall not result in additional fees.
The registration provided for by this section shall be effective until canceled in writing. Any application for the reissuance of a previously canceled registration identification number shall be regarded as a new registration application and shall be subject to the payment of the one-time registration fee. The director may revoke or cancel any license issued under this chapter for cause as provided by rule under chapter 91.
(b) If the license fee is paid, the department shall not refuse to issue a registration or revoke or cancel a registration for the exercise of a privilege protected by the First Amendment of the Constitution of the United States, or for the carrying on of interstate or foreign commerce, or for any privilege the exercise of which, under the Constitution and laws of the United States, cannot be restrained on account of nonpayment of taxes, nor shall section 237D-14 be invoked to restrain the exercise of such a privilege, or the carrying on of such commerce.
(c) The department shall create and manage a public, online database of all operators and plan managers that receive a certificate of registration pursuant to subsection (a). The database shall enable a user to:
(1) Search the database by property address to determine whether that property is managed by an operator or a plan manager who has received a certificate of registration;
(2) Enter the name of an operator or plan manager to determine whether the operator or plan manager has received a certificate of registration;
(3) Enter the name of an operator to determine the address of every transient accommodation managed by that operator; and
(4) Enter the name of a plan manager to determine the address of every resort time share vacation unit subject to a resort time share vacation plan managed by the plan manager.
(c)] (d) Any person who may
lawfully be required by the State, and who is required by this chapter, to
register as a condition precedent to engaging or continuing in the business of
furnishing transient accommodations or as a plan manager subject to taxation
under this chapter, who engages or continues in the business without
registering in conformity with this chapter, shall be guilty of a misdemeanor.
Any director, president, secretary, or treasurer of a corporation who permits,
aids, or abets such corporation to engage or continue in business without
registering in conformity with this chapter, shall likewise be guilty of a
misdemeanor. The penalty for the misdemeanors shall be that prescribed by
section 231-34 for individuals, corporations, or officers of corporations, as
the case may be, for violation of that section."
SECTION 4. Section 237D-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) On or before the twentieth day of
each calendar month, every operator taxable, or plan manager liable under this
chapter during the preceding calendar month shall file a sworn return with the
director in such form as the director shall prescribe together with a
remittance for the amount of the tax in the form required by section 237D-6.5[
provided that such form shall require the filer to indicate the amount of
transient accommodations tax revenues collected, aggregated by zip codes of
transient accommodations from which the revenues were derived. Sections
237-30 and 237-32 shall apply to returns and penalties made under this chapter
to the same extent as if the sections were set forth specifically in this
SECTION 5. Section 237D-7, Hawaii Revised Statutes, is amended to read as follows:
"§237D-7 Annual return. On or
before the twentieth day of the fourth month following the close of the taxable
year, every person who has become liable for the payment of the taxes under
this chapter during the preceding tax year shall file a return summarizing that
person's liability under this chapter for the year, in such form as the
.]; provided that such form shall require each
filer to include the number of the filer's certificate of registration issued
pursuant to section 237D-4. The operator or plan manager shall transmit
with the return a remittance covering the residue of the tax chargeable to the
operator or plan manager, if any, to the office of the appropriate state
district tax assessor designated in section 237D-8. The return shall be signed
by the taxpayer, if made by an individual, or by the president, vice-president,
secretary, or treasurer of a corporation, if made on behalf of a corporation.
If made on behalf of a partnership, firm, society, unincorporated association,
group, hui, joint adventure, joint stock company, corporation, trust estate,
decedent's estate, trust, or other entity, any individual delegated by the
entity shall sign the same on behalf of the taxpayer. If for any reason it is
not practicable for the individual taxpayer to sign the return, it may be done
by any duly authorized agent. The department, for good cause shown, may extend
the time for making the return on the application of any taxpayer and grant
such reasonable additional time within which to make the return as the
department may deem advisable.
Section 232-2 applies to the annual return, but not to a monthly return."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2015, and shall apply to taxable years beginning after December 31, 2015.
Transient Accommodations; Registration; Public Database; Department of Taxation
Amends the definition of "transient accommodations" to include single family dwellings. Requires the department of taxation to manage a public database of all registered transient accommodation and resort time share vacation plan businesses. Requires filers of transient accommodations tax to include the amount of transient accommodations tax revenues collected by zip code and certificate of registration number on annual tax return.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.