TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. 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 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; [
(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[
(6) Beginning July 1, 2018, and ending December 31, 2030, in addition to any amounts allocated pursuant to paragraph (4), the following amounts shall be allocated to the counties of Kauai, Hawaii, and Maui:
(A) The county of Kauai shall receive $9,425,000;
(B) The county of Hawaii shall receive $12,090,000; and
(C) The county of Maui shall receive $14,820,000; provided that the moneys allocated pursuant to this paragraph shall be expended on projects authorized under a county's general plan, development plan, or tourism strategic plan. Each county receiving moneys pursuant to this paragraph shall submit to the legislature, no later than twenty days prior to the convening of each regular session, a report that details how the moneys allocated pursuant to this paragraph were expended and the plan under which the expenditure falls.
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 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval; provided that this Act shall be repealed on December 31, 2030, and section 237D-6.5(b), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.
Transient Accommodations Tax; Counties
Allocates additional transient accommodations tax revenues from July 1, 2018 until December 31, 2030 to the counties of Kauai, Hawaii, and Maui. Sunsets 12/31/2030. (SB648 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.