STAND. COM. REP. NO. 3669
RE: H.B. No. 2366
Honorable Ronald D. Kouchi
President of the Senate
Thirtieth State Legislature
Regular Session of 2020
State of Hawaii
Your Committee on Energy, Economic Development, and Tourism, to which was referred H.B. No. 2366 entitled:
"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Repeal the misdemeanor penalty for failing to obtain a transient accommodations tax registration identification number and replace it with a monetary fine;
(2) Apply personal liability for certain controlling officers;
(3) Replace the term "operator or plan manager" with "person" or "taxpayer";
(4) Broaden the definition of "operator"; and
(5) Repeal references to filing of returns and remittance of payments to specific taxation districts.
Your Committee received testimony in support of this measure from the Department of Taxation. Your Committee received comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that many provisions in the transient accommodations tax law are outdated and must be updated to ensure the proper administration of the transient accommodations tax. This measure addresses discrepancies in the transient accommodations tax law due to outdated law, conforms the law to recent changes, and clarifies other provisions to ease administration for the Department of Taxation.
Your Committee has amended this measure by:
(1) Specifying that the definition of "gross rental" or "gross rental proceeds" shall not be construed to include the fees earned by a hotel, hotel-condominium, or condominium-hotel acting as the managing or rental agent for an operator or owner;
(2) Exempting a hotel, hotel-condominium, or condominium-hotel, regardless if it is a transient accommodations broker, travel agency, and tour packager or not, that is acting as a managing or rental agent for an operator or owner from transient accommodation tax certificate of registration requirements; and
(3) Making technical, nonsubstantive amendments 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 H.B. No. 2366, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2366, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.
Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,
GLENN WAKAI, Chair