STAND. COM. REP. NO. 3069

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1850

       H.D. 1

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committees on Tourism and International Affairs and Commerce, Consumer Protection, and Health, to which was referred H.B. No. 1850, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to allow a transient accommodations broker to register to act as a tax collection agent with respect to transient accommodations taxes and general excise taxes for its operators and plan managers.

 

     Your Committees received testimony in support of this measure from the Department of Taxation; Airbnb; Outrigger Hotels and Resorts; Faith Action for Community Equity; Rocky Point Properties, LLC; and numerous individuals.  Your Committees received testimony in opposition to this measure from the Department of Planning and Permitting of the City and County of Honolulu, Planning Department of the County of Kauai, Hawaii Appleseed Center for Law and Economic Justice, Kailua Neighborhood Board No. 31, Keep It Kailua, Rentals by Owner Awareness Association, Save Oahu's Neighborhoods, UNITE HERE Local 5, Hawaii Lodging & Tourism Association, and numerous individuals.  Your Committees received comments on this measure from Tax Foundation of Hawaii, Office of Hawaiian Affairs, and one individual.

 

     Your Committees find that allowing a private person to act as a tax collection agent is likely to ease the burden of collecting taxes.  As an example, section 237-9, Hawaii Revised Statutes, allows a person engaged in network marketing, multi-level marketing, or other similar business to enter into an agreement with the Department of Taxation to act as a tax collection agent on behalf of its direct sellers.  Your Committees find that similarly allowing a transient accommodations broker to act as a tax collection agent on behalf of providers of transient accommodations that utilize the services of the transient accommodations broker will facilitate the collection of transient accommodations taxes and general excise taxes.

 

     Your Committees have amended this measure by ensuring that the subject property is in compliance with land use laws by:

 

     (1)  Requiring the transient accommodations broker, prior to placing an advertisement for a property, to notify the operator or plan manager that the subject property is required to be in compliance with applicable land use laws; and

 

     (2)  Requiring the operator or plan manager to attest that the subject property is in compliance with applicable land use laws.

 

     Your Committees request your Committee on Ways and Means to consider the testimony of the Department of Taxation regarding the need for an extension of time in order to make forms available.

 

     As affirmed by the records of votes of the members of your Committees on Tourism and International Affairs and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1850, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1850, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

 


Respectfully submitted on behalf of the members of the Committees on Tourism and International Affairs and Commerce, Consumer Protection, and Health,

 

________________________________

ROSALYN H. BAKER, Chair

 

____________________________

J. KALANI ENGLISH, Majority Leader