THE SENATE

S.B. NO.

519

TWENTY-EIGHTH LEGISLATURE, 2015

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that a recent business pulse survey in the January 9, 2015, edition of the Pacific Business News found that 71.5 per cent of respondents said "yes" when asked, "Should home-based vacation rentals be subject to the same transient accommodations tax (TAT) levied on hotel rooms and time-shares?"  25.7 per cent of respondents said "no" and 2.8 per cent were undecided.  Although many home-based vacation rentals are subject to the same transient accommodations tax levied on hotel rooms and time shares, many operators of transient accommodations and plan managers of resort time share vacation plans have been circumventing the law, creating an unfair advantage over their law-abiding counterparts.  In line with public sentiment on this issue, the legislature finds that action is necessary to correct this situation.

     The purpose of this Act is to make permanent the changes adopted by Act 326, Session laws of Hawaii 2012, and to allow the department of taxation to enforce civil penalties for operators and plan managers who fail to conspicuously display the certificate of registration in the registered transient accommodation.

     SECTION 2.  Section 237D-4, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  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.

     The department may issue cease and desist citations to any operator or plan manager who fails to conspicuously display the registration or notice as required by this section.  A cease and desist citation may include a monetary fine for any unlawful act.  Any fine assessed under this section:

     (1)  Shall be retained and deposited into the tax administration special fund;

     (2)  Shall be due and payable thirty days after issuance, subject to appeal rights provided under paragraph (3); and

     (3)  May be appealed to the director of taxation or the director's designee, and the determination of the director may be appealed to the circuit court, pursuant to chapter 91."

     SECTION 3.  Act 326, Session Laws of Hawaii 2012, is amended by amending section 4 to read as follows:

     "SECTION 4.  This Act shall take effect on July 1, 2012[; provided that this Act shall be repealed on December 31, 2015]."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.


 


 

Report Title:

Vacation Rentals; Transient Accommodations Tax; Registration; Advertisements

 

Description:

Makes Act 326, Session Laws of Hawaii 2012, permanent.  Authorizes the department of taxation to enforce civil penalties for operators and plan managers who fail to conspicuously display the certificate of registration for transient accommodations.  (SD1)

 

 

 

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