Honolulu, Hawaii


RE: S.B. No. 380

S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 380 entitled:




begs leave to report as follows:


The purpose and intent of this measure is to impose the transient accommodations tax on resort fees and requires that those fees be included in gross rental or gross rental proceeds.


Your Committee received testimony in opposition to this measure from the Hawaii Lodging and Tourism Association; Prince Resorts Hawaii; Kohala Coast Resort Association; OLS Hotels and Resorts; Waikoloa Beach Marriott Resort and Spa; Sheraton Kauai Resort; Aqua-Aston Hospitality; Castle Resorts & Hotels; Hampton Inn & Suites Oahu/Kapolei; Maui Hotel & Lodging Association; Hilton Grand Vacations; Outrigger Hospitality Group; Marriott's Maui Ocean Club; Hyatt Resorts Hawaii; Pualeilani Atrium Shops at Hyatt Regency Waikiki Beach Resort & Spa; Hyatt Regency Waikiki Beach Resort & Spa; Moana Surfrider, A Westin Resort & Spa; Outrigger Enterprises Group; Trump International Hotel Waikiki; Marriott Vacations Worldwide; Waikiki Resort Hotel; and Kyo-ya Management Co., Ltd. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.


Your Committee finds that in recent years, the transient accommodations industry has expanded rapidly, especially in tourist destinations such as Hawaii. Although technological advancements have improved the lifestyle for many consumers, they have also introduced issues with tax compliance. Your Committee believes that further refinement and specificity are needed to address the growth of the transient accommodations industry while protecting the interests of state residents.


Your Committee has amended this measure by:


(1) Amending the definition of "resort fees" to mean only mandatory charges or surcharges; and


(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.


As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 380, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 380, S.D. 1, and be referred to your Committee on Ways and Means.


Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,