STAND. COM. REP. NO. 3299

 

Honolulu, Hawaii

                   

 

RE:     S.C.R. No. 131

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committees on Economic Development, Tourism, and Technology and Commerce, Consumer Protection, and Health, to which was referred S.C.R. No. 131 entitled:

 

"SENATE CONCURRENT RESOLUTION URGING THE DEPARTMENT OF TAXATION TO ENFORCE SECTION 237D-4, HAWAII REVISED STATUTES, REGARDING ONLINE ADVERTISING FOR TRANSIENT ACCOMMODATIONS TO ENSURE COLLECTION OF TRANSIENT ACCOMMODATION TAXES AND GENERAL EXCISE TAXES FROM VACATION RENTALS,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to urge the Department of Taxation to enforce section 237D-4, Hawaii Revised Statutes, by regularly checking online advertisements for transient accommodations for compliance with section 237-4(c), Hawaii Revised Statutes.

 

     Your Committees received testimony in support of this measure from Save Oahu Neighborhoods and four individuals.  Your Committees received comments on this measure from the Department of Taxation.

 

     Your Committees find that vacation rentals have become a pressing matter for the State, with a number of vacation rentals operating without being appropriately registered, thereby evading the transient accommodations tax and general excise tax.  Your Committees further find that Act 204, Session Laws of Hawaii 2015 (Act 204), enables the Department of Taxation to, among other things, require an operator to post or make available the registration identification number for a transient accommodation or resort time share vacation interest, plan, or unit in Hawaii.  Act 204 further authorizes the Department of Taxation to issue citations to any transient accommodations operator who fails to comply with the information posting requirements and has the authority to fine any operator for failure to post the registration identification number conspicuously.

 

     Your Committees believe that the Department of Taxation should enforce Act 204 and constantly check to ensure that all transient accommodations are complying with tax laws, thereby receiving the full amount of taxes owed to the State.

 

     Your Committees have amended this measure by adding language to request the Department of Taxation to work with various county departments to gather and share information that is necessary and pertinent for the Department of Taxation to collect the full amount of taxes owed from transient accommodation operators and plan managers.

 

     As affirmed by the records of votes of the members of your Committees on Economic Development, Tourism, and Technology and Commerce, Consumer Protection, and Health that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 131, as amended herein, and recommend that it be referred to your Committee on Ways and Means, in the form attached hereto as S.C.R. No. 131, S.D. 1.

 

Respectfully submitted on behalf of the members of the Committees on Economic Development, Tourism, and Technology and Commerce, Consumer Protection, and Health,

 

________________________________

ROSALYN H. BAKER, Chair

 

________________________________

GLENN WAKAI, Chair