HOUSE OF REPRESENTATIVES |
H.B. NO. |
1665 |
TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the transient ACCOMMODATIONS tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the state-county functions working group was convened pursuant to Act 174, Session Laws of Hawaii 2014, to evaluate the division of duties and responsibilities between the State and counties relating to the provision of public services and to recommend an appropriate allocation of the transient accommodations tax revenues between the State and counties that properly reflects the division of duties and responsibilities relating to the provision of public services.
The state-county functions working group, composed of state, county, and visitor industry representatives and other knowledgeable and concerned citizens and aided by experts, considered the legislature's assignment for over a year and delivered its final unanimous report, inclusive of analysis, findings, conclusions, and recommendations. Based on a review of state and county functions, including tourism expenditures, the working group concluded that an appropriate allocation of the remaining transient accommodations tax revenues is fifty-five per cent to the state general fund and forty-five per cent to the counties. There should be no fixed dollar amounts, caps, floors, or other restrictions on allocations to the State and counties of the remaining revenues. Instead, both the state and the county allocations should increase or decrease proportionately with increasing or decreasing transient accommodations tax revenues.
Accordingly, the purpose of this Act is to allocate forty-five per cent of the remaining transient accommodations tax revenues to the counties, in accordance with the recommendations of the state-county functions working group.
SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Except for the revenues collected pursuant to section 237D-2(e), revenues collected under this chapter shall be distributed in the following priority, with the excess revenues to be deposited into the general fund:
(1) $1,500,000 shall be allocated to the Turtle Bay conservation easement special fund beginning July 1, 2015, for the reimbursement to the state general fund of debt service on reimbursable general obligation bonds, including ongoing expenses related to the issuance of the bonds, the proceeds of which were used to acquire the conservation easement and other real property interests in Turtle Bay, Oahu, for the protection, preservation, and enhancement of natural resources important to the State, until the bonds are fully amortized;
(2) $26,500,000 shall be allocated to the convention center enterprise special fund established under section 201B-8;
(3) $82,000,000 shall be allocated to the tourism special fund established under section 201B-11; provided that:
(A) Beginning on July 1, 2012, and ending on June 30, 2015, $2,000,000 shall be expended from the tourism special fund for development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii;
(B) Of the $82,000,000 allocated:
(i) $1,000,000 shall be allocated for the operation of a Hawaiian center and the museum of Hawaiian music and dance at the Hawaii convention center; and
(ii) 0.5 per cent of the $82,000,000 shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; and
(C) Of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds shall be deposited into the tourism emergency special fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency special fund;
(4) [$103,000,000] Forty-five per cent
shall be allocated to the counties, which shall be allocated as
follows: Kauai county shall receive 14.5 per cent, Hawaii county shall receive
18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and
Maui county shall receive 22.8 per cent; provided that commencing with fiscal
year 2018-2019, a sum that represents the difference between a county public
employer's annual required contribution for the separate trust fund established
under section 87A-42 and the amount of the county public employer's
contributions into that trust fund shall be retained by the state director of
finance and deposited to the credit of the county public employer's annual
required contribution into that trust fund in each fiscal year, as provided in
section 87A-42, if the respective county fails to remit the total amount of the
county's required annual contributions, as required under section 87A-43; and
(5) $3,000,000 shall be allocated to the special land and development fund established under section 171-19; provided that the allocation shall be expended in accordance with the Hawaii tourism authority strategic plan for:
(A) The protection, preservation, maintenance, and enhancement of natural resources, including beaches, important to the visitor industry;
(B) Planning, construction, and repair of facilities; and
(C) Operation and maintenance costs of public lands, including beaches, connected with enhancing the visitor experience.
All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection.
As used in this subsection, "fiscal year" means the twelve-month period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2018.
INTRODUCED BY: |
_____________________________ By Request |
Report Title:
Transient Accommodations Tax; Counties
Description:
Amends the amount of transient accommodations tax revenues allocated to the counties from a specified sum to a percentage of the revenues collected.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.