THE SENATE

S.B. NO.

1292

THIRTIETH LEGISLATURE, 2019

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TRANSIENT ACCOMMODATIONS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


PART I

SECTION 1. The legislature finds that, under certain circumstances, allowing a private person to act as a tax collection agent is likely to ease the burden of collecting taxes. Section 237-9(e), 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. The legislature finds 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 may facilitate the collection of transient accommodations taxes and general excise taxes.

The legislature also finds that hosting platforms, such as Airbnb, should be subject to fines if the hosting platform collects a booking service fee for posting online a transient accommodations unit rental that is not registered with its respective county in Hawaii.

The legislature additionally finds that transient accommodations transient accommodations brokers, platform hosts, and booking services should provide a monthly report of transient accommodations listings in Hawaii by zip code to the department of taxation, and maintain records that should be made available upon lawful request to enforcement authorities, for greater transparency and data sharing purposes.

The purpose of this Act is to:

(1) Amend the definition of "transient accommodations" to include other forms of transient accommodations and other terms that the counties may have defined;

(2) Make it unlawful for a hosting platform to provide, and collect a fee for, booking services regarding transient accommodations that are not lawfully certified, registered, or permitted under applicable county ordinance;

(3) Require anonymous, periodic reports by transient accommodations brokers, platform hosts, and booking services to the department of taxation of transient accommodations listings;

(4) Enable a transient accommodations broker to register as a tax collection agent with respect to transient accommodations taxes and general excise taxes for its operators and plan managers; and

(5) Require a transient accommodations broker, platform host, and booking service to remove a transient accommodation advertisement upon notice that the property is not in compliance with state law or county ordinance.

This Act is not intended to preempt or otherwise limit the authority of counties to adopt, monitor, and enforce local land use regulations, and this Act is not intended to transfer the authority to monitor and enforce such regulations away from the counties.

PART II

DEFINITIONS

SECTION 2. Section 237D-1, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Booking service" means any advertising, reservation, or payment service provided by a person or entity that facilitates a transient accommodation transaction between an operator and a prospective transient or occupant, and for which the person or entity collects or receives, directly or indirectly, through an agent or intermediary, a fee in connection with the advertising, reservation, or payment services provided for the transient accommodation transaction.

"Hosting platform" means a person or entity that participates in the transient accommodations business by providing, and collecting or receiving a fee for, booking services through which an operator may offer a transient accommodation. Hosting platforms usually, though not necessarily, provide booking services through an online platform that allows an operator to advertise the transient accommodations through a website provided by the hosting platform and the hosting platform conducts a transaction by which potential renters arrange, use, pay, whether the renter pays rent directly to the operator or to the hosting platform."

2. By amending the definition of "transient accommodations" to read:

""Transient accommodations" means the furnishing of a room, apartment, suite, single family dwelling, or the like to a transient for less than one hundred eighty consecutive days for each letting in a hotel, apartment hotel, motel, condominium or unit as defined in chapter 514B, cooperative apartment, dwelling unit, or rooming house that provides living quarters, sleeping, or housekeeping accommodations, or other place in which lodgings are regularly furnished to transients. "Transient accommodations" includes "transient accommodations units", "transient vacation rentals", "transient vacation units", "transient vacation use", or any similar term that may be defined by county ordinance to mean a room, apartment, house, condominium, beach house, hotel room, suite, or similar living accommodation rented to a transient person for less than one hundred eighty consecutive days in exchange for payment in cash, goods, or services."

PART III

HOSTING Platform AND TRANSIENT ACCOMMODATIONS BROKER Liability

SECTION 3. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237D-   Booking services. (a) It shall be unlawful for a hosting platform to provide booking services and collect a fee for such booking services provided in connection with transient accommodations located in the State if the operator of the transient accommodation is not registered with the department as required under section 237D-4. This section shall not apply to booking services provided in connection with a transient accommodation that is a hotel.

(b) A hosting platform or transient accommodation broker that violates this section shall be subject to a penalty of $1,000 per booking service transaction from which fees were collected in violation of subsection (a). The following transactions shall be deemed to be separate booking services transactions:

(1) Each reservation for the letting of a transient accommodation;

(2) Each pay-per-listing agreement between a hosting platform and an operator;

(3) A single calendar month of a subscription-based listing agreement between a hosting platform and an operator;

(4) Each instance of an operator registering with a hosting platform; and

(5) Other transactions set forth by administrative rule.

(c) As used in this section:

"Booking service" shall have the same meaning as in section 237D-1.

"Hotel" means an establishment consisting of any building, structure, or portion thereof containing more than nine rooming units that, as part of its routine operations, furnishes transient accommodations and provides one or more additional customary lodging services other than the living accommodations and the use of furniture, fixtures, and appliances, such as room attendant, room service, bell service laundering service, concierge service or daily housekeeping services.

"Hosting Platform" shall have the same meaning as in 237D‑1.

"Service Business" shall have the same meaning as in section 237-7.

(d) The department may require a hosting platform to provide the names and registration identification numbers for all operators for whom the hosting platform provided booking services and for all operators whose property or transient accommodations the hosting platform provided booking services for.

The department shall not impose penalties under this section if the hosting platform obtains the registration identification number issued under section 237D-4 of the operators described in this subsection, in the format in which such numbers are issued by the department.

(e) Any monetary penalty assessed under this section shall be due and payable thirty days after the hosting platform is notified of the imposition of the penalty. Penalties assessed under this section may be appealed to the director of taxation or the director's designee."

PART IV

Transparency and Data Sharing

SECTION 4. Section 237D-4, Hawaii Revised Statutes, is amended to read as follows:

"237D-4 Certificate of registration. (a) Each operator or plan manager as a condition precedent to engaging or continuing in the business of furnishing transient accommodations or in business as a resort time share vacation plan shall register with the director the name and address of each place of business within the State subject to this chapter. The operator or plan manager shall make a one-time payment as follows:

(1) $5 for each registration for transient accommodations consisting of one to five units;

(2) $15 for each registration for transient accommodations consisting of six or more units; and

(3) $15 for each resort time share vacation plan within the State;

upon receipt of which the director shall issue a certificate of registration in such form as the director determines, attesting that the registration has been made. The registration shall not be transferable and shall be valid only for the operator or plan manager in whose name it is issued and for the transaction of business at the place designated therein. Acquisition of additional transient accommodation units after payment of the one-time fee shall not result in additional fees.

(b) The registration, or in lieu thereof a notice stating where the registration may be inspected and examined, shall at all times be conspicuously displayed at the place for which it is issued. The name, phone number, and electronic mail address of the local contact shall at all times be conspicuously displayed in the same place as the registration or the same place as the notice stating where the registration may be inspected and examined. Failure to meet the requirements of this subsection shall be unlawful. The department may issue citations to any person who fails to conspicuously display the registration or notice, or the local contact's name, phone number, or electronic mail address as required by this subsection. A citation issued pursuant to this subsection for each transient accommodation or resort time share vacation interest, plan, or unit in violation of this subsection shall include a monetary fine of not less than:

(1) $500 per day, for a first violation for which a citation is issued;

(2) $1,000 per day, for a second violation for which a citation is issued; and

(3) $5,000 per day, for a third and any subsequent violation for which a citation is issued.

(c) Any advertisement, including an online advertisement, for any transient accommodation or resort time share vacation interest, plan, or unit shall conspicuously provide:

(1) [The registration identification number or an electronic link to the registration identification number of the] The operator or plan [manager issued pursuant to this section; and] manager's transient accommodations tax registration identification number;

(2) The local contact's name, phone number, and electronic mail address, provided that this paragraph shall be considered satisfied if this information is provided to the transient or occupant prior to the furnishing of the transient accommodation or resort time share vacation unit[.]; and

(3) The county-level transient accommodations tax registration identification number of each advertised unit as provided by the county having jurisdiction.

Upon notice that the property is not in compliance with state law or county ordinance, an operator or plan manager shall remove the transient accommodations unit advertisement.

(d) Failure to meet the requirements of subsection (c) shall be unlawful. The department may issue citations to any person, including [operators, plan managers, and] transient accommodations brokers, platform hosts, and booking services, who violates subsection (c). A citation issued pursuant to this subsection for each transient [accommodation] accommodations or resort time share vacation interest, plan, or unit in violation of subsection (c) shall include a monetary fine of not less than:

(1) $500 per day, for a first violation for which a citation is issued;

(2) $1,000 per day, for a second violation for which a citation is issued; and

(3) $5,000 per day, for a third and any subsequent violation for which a citation is issued.

(e) The registration provided for by this section shall be effective until canceled in writing. Any application for the reissuance of a previously canceled registration identification number shall be regarded as a new registration application and shall be subject to the payment of the one-time registration fee. The director may revoke or cancel any license issued under this chapter for cause as provided by rule under chapter 91.

(f) If the license fee is paid, the department shall not refuse to issue a registration or revoke or cancel a registration for the exercise of a privilege protected by the First Amendment of the Constitution of the United States, or for the carrying on of interstate or foreign commerce, or for any privilege the exercise of which, under the Constitution and laws of the United States, cannot be restrained on account of nonpayment of taxes, nor shall section 237D-14 be invoked to restrain the exercise of such a privilege, or the carrying on of such commerce.

[(g) Any person who may lawfully be required by the State, and who is required by this chapter, to register as a condition precedent to engaging or continuing in the business of furnishing transient accommodations or as a plan manager subject to taxation under this chapter, who engages or continues in the business without registering in conformity with this chapter, shall be guilty of a misdemeanor. Any director, president, secretary, or treasurer of a corporation who permits, aids, or abets such corporation to engage or continue in business without registering in conformity with this chapter, shall likewise be guilty of a misdemeanor. The penalty for the misdemeanors shall be the same as that prescribed by section 231-35 for individuals, corporations, or officers of corporations, as the case may be, for violation of that section.

(h)] (g) Any monetary fine assessed under this section shall be due and payable thirty days after issuance of the citation, subject to appeal rights provided under this subsection. Citations may be appealed to the director of taxation or the director's designee.

(h) Each transient accommodations broker, platform host, and booking service shall provide a monthly report of listings in Hawaii by the fifth day of each month with the previous month's data. Listing data shall be submitted through an online process with a reporting template and appropriate calculation guidelines developed by, and made publically available on the website of, the department of business, economic development, and tourism. Reported data shall be anonymized and aggregated by zip code and shall include all of the following fields:

(1) Total number of available units;

(2) Total number of available rooms;

(3) Total available room nights;

(4) Total occupied room nights;

(5) Average daily rate; and

(6) Total revenue.

Any operator or plan manager who fails to provide a monthly report to the department of taxation shall be subject to the citation process and penalties of $100 per day for non-compliance."

PART V

TRANSIENT ACCOMMODATIONS BROKERS AS TAX COLLECTION AGENTS

SECTION 5. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237-   Transient accommodations broker as tax collection agent; operator and plan manager. (a) The director may permit a transient accommodations broker to register as a tax collection agent on behalf of all of its operators and plan managers by entering into a tax collection agreement with the director or by submitting a tax collection agent registration statement to the director; provided that the transient accommodations broker agrees in writing:

(1) To obtain written consent from all of its operators and plan managers for the disclosure of periodic returns and information required under subsection (g);

(2) To furnish information to the counties as required in subsection (g); and

(3) That continuing to collect fees for booking services in connection with a transient accommodation, seven days after receiving written notice from a state or county governmental authority that the subject property is not in compliance with state law or county ordinance, is a violation of the tax collection agreement.

Any tax collection agreement entered into pursuant to this section shall be subject to and in accordance with all applicable provisions of state law and county ordinances and shall not permit a tax collection agent, nor any operator or plan manager conducting business through the tax collection agent, to opt out of any requirements or obligations under state law or county ordinance.

The director shall deny an application for registration as a tax collection agent under this section for violations of this subsection and may deny an application for any other cause authorized by law, including any violation of this chapter or rules adopted pursuant thereto, violation of any prior tax collection agreement, or failure to meet minimum criteria that may be set forth by the department in rules adopted pursuant to chapter 91.

The director shall issue a certificate of registration or letter of denial within thirty days after a transient accommodations broker submits to the director a completed and signed tax collection agent registration statement, in a form prescribed by the department.

The registration shall be valid only for the tax collection agent in whose name it is issued, and for the website or hosting platform designated therein, and shall not be transferable.

(b) In addition to its own responsibilities under this chapter, a registered tax collection agent shall report, collect, and pay over the taxes due under this chapter on behalf of all of its operators and plan managers from the date of registration until the registration is canceled as provided in subsection (h); provided that the registered tax collection agent's obligation to report, collect, and pay taxes on behalf of all of its operators and plan managers shall apply solely to transient accommodations in the State arranged or booked directly through the registered tax collection agent.

(c) The registered tax collection agent's operators and plan managers shall obtain licensure under this chapter and remain subject to the requirements of title 14; provided that the registered tax collection agent shall report, collect, and pay the taxes under this chapter on behalf of the operators and plan managers for business activity conducted directly through the agent, as set forth in this section, from the date of registration until the registration is canceled as provided in subsection (h). For purposes of any other business activity, the operators and plan managers shall be subject to all requirements of title 14 and all county ordinances and rules regulating transient accommodations, regardless of the terms used by the county to refer to transient accommodations, as if this section did not exist.

A registered tax collection agent shall be issued separate certificates of registration under this chapter with respect to taxes payable on behalf of its operators and plan managers in its capacity as a registered tax collection agent and, if applicable, with respect to any taxes payable under this chapter for its own business activities.

(d) If the registered tax collection agent fails to report or pay the taxes under this chapter on behalf of the operators and plan managers, as set forth in this section, the registered tax collection agent and the operator or plan manager shall be jointly and severally liable for the taxes due under this chapter, including penalties and interest as provided by law, with respect to their business activities conducted directly through the registered tax collection agent from the date of registration until the registration is canceled as provided in subsection (h).

(e) A tax collection agent shall be personally liable for the taxes imposed by this chapter that are due and collected on behalf of operators and plan managers, if taxes are collected, but not reported or paid, together with penalties and interest as provided by law. If the tax collection agent is an entity, the personal liability under this subsection shall apply to any officer, member, manager, or other person who has control or supervision over amounts collected to pay the taxes or who is charged with the responsibility for the filing of returns or the payment of taxes.

(f) Except as otherwise provided in this subsection and subsection (g), all returns and other information provided by a registered tax collection agent, including the application for registration as a tax collection agent or any tax collection agreement, shall be confidential, and disclosure thereof shall be prohibited as provided in section 237-34. Nothing in this subsection shall prevent public disclosure of information about registered agents as provided in subsection 92F-12(a)(13) or of aggregated information not identifiable to a specific tax collection agent.

(g) A registered tax collection agent shall file periodic returns in accordance with section 237-30 and annual returns in accordance with section 237-33. Each periodic return required under section 237-30 shall be accompanied by an electronic cover sheet, in a form prescribed by the department that includes the following information:

(1) For each operator and plan manager on whose behalf the tax collection agent is required to report, collect, and pay over taxes due under this chapter, the operator's or plan manager's name, address, and general excise tax license number; and

(2) For each transient accommodation rented through the registered tax collection agent or the website or hosting platform designated in the certificate of registration issued pursuant to chapter 237D, for which taxes are being remitted pursuant to this chapter:

(A) The address of the transient accommodation;

(B) The number of nights that each transient accommodation was rented and the rate or price at which each transient accommodation was rented; and

(C) The amount of tax being remitted pursuant to this chapter and the amount of any federal form 1099 income that was derived from each transient accommodation.

Upon request by the planning director or mayor of the applicable county, a registered tax collection agent shall disclose any of the information contained in the returns or cover sheets required by this subsection to the planning director or any county official designated by the mayor to receive the information. Notwithstanding any law to the contrary, including section 237-34, the planning director and county official designated to receive the information pursuant to this subsection may examine and copy the returns and cover sheets to ensure compliance with this section, state tax laws and county tax ordinances, and any applicable land use laws and ordinances.

(h) The registration provided for under this section shall be effective until canceled in writing.

A registered tax collection agent may cancel its registration under this section by delivering written notice of cancellation to the director and each of the agent's operators and plan managers furnishing transient accommodations in the State no later than ninety days prior to the effective date of cancellation.

The director may cancel a tax collection agent's registration under this section for any cause, including any violation of this chapter or rules adopted pursuant thereto, or for violation of any applicable tax collection agreement, by delivering written notice of cancellation to the tax collection agent no later than ninety days prior to the effective date of cancellation.

(i) When conducting business with an operator or plan manager with respect to a property for lease or rent, transient accommodations brokers, platform hosts, and booking services:

(1) Shall notify the operator or plan manager that the subject property is required to be in compliance with applicable state and county land use laws and ordinances prior to retaining the services of the transient accommodations broker;

(2) Shall require the operator or plan manager to provide the transient accommodations broker, platform host, or booking service with the operator's or plan manager's transient accommodations tax identification number and local contact information and shall notify the operator or plan manager that this information is required in advertisements for transient accommodations or resort time share vacation interests, plans, or units under section 237D-4;

(3) Shall require the operator or plan manager to provide the transient accommodation broker, platform host, and booking service with the county non-conforming use registration number, or other unit-specific transient accommodation registration number as issued by the appropriate county agency, and verification of compliance with state and county land use laws in the form of a written certification, verification, or permit, as applicable, issued by the appropriate county agency; and

(4) Shall require the operator or plan manager to provide any other information as may be required by rulemaking.

An operator or plan manager shall remove any advertisement published through the transient accommodations broker, including an online advertisement, for a transient accommodation located in the State for which the operator or plan manager fails to comply with paragraph (2), (3), or (4) or for which the operator or plan manager has received written notice from a state or county governmental authority that the property is not in compliance with state law or county ordinance, as applicable. The state or county governmental authority shall provide a copy of the written notice to the transient accommodations broker.

(j) Nothing in this section shall be construed to preempt or prohibit the authority of a unit of local government in the State, including counties and any other political subdivisions of the State, to adopt, monitor, and enforce local land use ordinances, rules, or regulations, nor to transfer the authority to monitor and enforce these ordinances, rules, or regulations away from the counties.

(k) For the purposes of this section:

"Booking service" has the same meaning as in section 237D‑1.

"Director" means the director of taxation.

"Operator" has the same meaning as in section 237D-1.

"Plan manager" has the same meaning as in section 237D-1.

"Transient accommodations" has the same meaning as in section 237D-1.

"Transient accommodations broker" has the same meaning as in section 237D-1."

SECTION 6. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"237D-   Transient accommodations broker as tax collection agent; operator and plan manager. (a) The director may permit a transient accommodations broker to register as a tax collection agent on behalf of all of its operators and plan managers by entering into a tax collection agreement with the director or by submitting a tax collection agent registration statement to the director; provided that the transient accommodations broker agrees in writing:

(1) To obtain written consent from all of its operators and plan managers for the disclosure of periodic returns and information required under subsection (g);

(2) To furnish information to the counties as required in subsection (g); and

(3) That continuing to collect fees for booking services in connection with a transient accommodation, seven days after receiving written notice from a state or county governmental authority that the subject property is not in compliance with state law or county ordinance, is a violation of the tax collection agreement.

Any tax collection agreement entered into pursuant to this section shall be subject to and in accordance with all applicable provisions of state law and county ordinances and shall not permit a tax collection agent, nor any operator or plan manager conducting business through the tax collection agent, to opt out of any requirements or obligations under state law or county ordinance.

The director shall deny an application for registration as a tax collection agent under this section for violations of this subsection and may deny an application for any other cause authorized by law, including any violation of this chapter or rules adopted pursuant thereto, violation of any prior tax collection agreement, or failure to meet minimum criteria that may be set forth by the department in rules adopted pursuant to chapter 91.

The director shall issue a certificate of registration or letter of denial within thirty days after a transient accommodations broker submits to the director a completed and signed tax collection agent registration statement, in a form prescribed by the department. The registration shall be valid only for the tax collection agent in whose name it is issued, and for the website or hosting platform designated therein, and shall not be transferable.

A registered tax collection agent shall be issued separate certificates of registration under this chapter with respect to taxes payable on behalf of its operators and plan managers in its capacity as a registered tax collection agent and, if applicable, with respect to any taxes payable under this chapter for its own business activities.

(b) In addition to its own responsibilities under this chapter, a registered tax collection agent shall report, collect, and pay over the taxes due under this chapter on behalf of all of its operators and plan managers from the date of registration until the registration is canceled as provided in subsection (h); provided that the registered tax collection agent's obligation to report, collect, and pay taxes on behalf of all of its operators and plan managers shall apply solely to transient accommodations in the State arranged or booked directly through the registered tax collection agent.

(c) The registered tax collection agent's operators and plan managers shall obtain registration under this chapter and remain subject to the requirements of title 14; provided that the registered tax collection agent shall report, collect, and pay the taxes under this chapter on behalf of the operators and plan managers for business activity conducted directly through the registered tax collection agent, as set forth in this section, from the date of registration until the registration is canceled as provided in subsection (h). For purposes of any other business activity, the operators and plan managers shall be subject to all requirements of title 14 and all applicable ordinances and rules regulating transient accommodations, regardless of the terms used by the county to refer to transient accommodations, as if this section did not exist.

(d) If the registered tax collection agent fails to report or pay the taxes under this chapter on behalf of the operators and plan managers, as set forth in this section, the registered tax collection agent and the operator or plan manager shall be jointly and severally liable for the taxes due under this chapter, including penalties and interest as provided by law, with respect to their business activities conducted directly through the registered tax collection agent from the date of registration until the registration is canceled as provided in subsection (h).

(e) A tax collection agent shall be personally liable for the taxes imposed by this chapter that are due and collected on behalf of operators and plan managers, if taxes are collected, but not reported or paid, together with penalties and interest as provided by law. If the tax collection agent is an entity, the personal liability under this subsection shall apply to any officer, member, manager, or other person who has control or supervision over amounts collected to pay the taxes or who is charged with the responsibility for the filing of returns or the payment of taxes.

(f) Except as otherwise provided in this subsection and subsection (g), all returns and other information provided by a registered tax collection agent, including the application for registration as a tax collection agent or any tax collection agreement, shall be confidential, and disclosure thereof shall be prohibited as provided in section 237-34. Nothing in this subsection shall prevent public disclosure of information about registered agents as provided in subsection 92F-12(a)(13) or of aggregated information not identifiable to a specific tax collection agent.

(g) A registered tax collection agent shall file periodic returns in accordance with section 237D-6 and annual returns in accordance with section 237D-7. Each periodic return required under section 237D-6 shall be accompanied by an electronic cover sheet, in a form prescribed by the department that includes the following information:

(1) For each operator and plan manager on whose behalf the tax collection agent is required to report, collect, and pay over taxes due under this chapter, the operator's or plan manager's name, address, and transient accommodations registration identification number; and

(2) For each transient accommodation rented through the registered tax collection agent or the website or hosting platform designated in the certificate of registration issued pursuant to subsection (a), for which taxes are being remitted pursuant to this chapter:

(A) The address of the transient accommodation;

(B) The number of nights that each transient accommodation was rented and the rate or price at which each transient accommodation was rented; and

(C) The amount of tax being remitted pursuant to this chapter and the amount of any federal form 1099 income that was derived from each transient accommodation.

Upon request by the planning director or mayor of the applicable county, a registered tax collection agent shall disclose any of the information contained in the returns or cover sheets required by this subsection to the planning director or any county official designated by the mayor to receive the information. Notwithstanding any law to the contrary, including section 237D-13, the planning director and county official designated to receive the information pursuant to this subsection may examine and copy the returns and cover sheets to ensure compliance with this section, state and county tax laws and ordinances, and any applicable land use laws and ordinances.

(h) The registration provided for under this section shall be effective until canceled in writing.

A registered tax collection agent may cancel its registration under this section by delivering written notice of cancellation to the director and each of the agent's operators and plan managers furnishing transient accommodations in the State no later than ninety days prior to the effective date of cancellation.

The director may cancel a tax collection agent's registration under this section for any cause, including any violation of this chapter or rules adopted pursuant thereto, or for violation of any applicable tax collection agreement, by delivering written notice of cancellation to the tax collection agent no later than ninety days prior to the effective date of cancellation.

(i) When conducting business with an operator or plan manager with respect to a property for lease or rent, a transient accommodations broker:

(1) Shall notify the operator or plan manager that the subject property is required to be in compliance with applicable state land use laws and county land use ordinances prior to retaining the services of the transient accommodations broker;

(2) Shall require the operator or plan manager to provide the transient accommodations broker with the operator or plan manager's transient accommodations registration identification number and local contact information and shall notify the operator or plan manager that this information is required in advertisements for transient accommodations or resort time share vacation interests, plans, or units under section 237D-4;

(3) Shall require the operator or plan manager to provide the transient accommodations broker with verification of compliance with state land use laws and county land use ordinances in the form of a written certification, verification, or permit, as applicable, issued by the appropriate county agency;

(4) Shall require the operator or plan manager to provide a statement to the transient accommodations broker confirming compliance with all land use laws and ordinances; and

(5) Shall require the operator or plan manager to provide any other information as may be required by rulemaking.

An operator or plan manager shall remove any advertisement published through the transient accommodations broker, including an online advertisement, for a transient accommodation located in the State for which the operator or plan manager fails to comply with paragraph (2), (3), (4), or (5) or for which the operator or plan manager has received written notice from a state or local governmental authority that the property is not in compliance with state law or county ordinance, as applicable. The state or county governmental authority shall provide a copy of the written notice to the transient accommodations broker.

(j) Nothing in this section shall be construed to preempt or prohibit the authority of a unit of local government in the State, including counties and any other political subdivisions of the State, to adopt, monitor, and enforce local land use ordinances, rules, or regulations, nor to transfer the authority to monitor and enforce these ordinances, rules, or regulations away from the counties."

PART VI

SECTION 7. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2019.



 

Report Title:

Transient Accommodations; Hosting Platform Liability; Hosting Platform Transparency; Data Sharing; Transient Accommodations Brokers; Tax Collection Agents

 

Description:

Part I: Describes the purpose of this Act. Part II: Adds definitions to the TAT law. Amends the definition of "transient accommodations" to include additional forms of transient accommodations. Part III: Makes it unlawful for a hosting platform to provide, and collect a fee for, booking services regarding transient accommodations if the operator is not registered with the Department of Taxation. Establish additional options for counties to obtain relief for violations of county ordinances or rules. Specifies that where a county seeks injunctive relief for violations related to single-family transient vacation rental units, the county need not show irreparable injury. Part IV: Amends requirements relating to transient accommodations tax certificates of registration to ensure greater transparency. Part V: Allows a transient accommodations broker to register as a GET and TAT tax collection agent for its operators and plan managers. (SD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.