H.R. NO.













urging the legislature to lift the ceiling on transient accommodations tax revenues distributed to the counties.




     WHEREAS, transient accommodations tax revenues are collected by the State based on the gross rental receipts of lodging suppliers in the State; and


     WHEREAS, revenues from the transient accommodations tax thus increase or decrease based on the cyclical nature of the visitor industry; and


     WHEREAS, counties expend transient accommodations tax revenues for general government purposes that benefit visitors and residents alike, including essential services such as police and fire protection and management of public spaces like beaches and parks; and


     WHEREAS, statutory provisions authorizing the transient accommodations tax and allocating its revenues have been amended frequently to meet perceived government needs and desired public purposes; and


     WHEREAS, these numerous amendments have created an instability among various stakeholders, including the State, the counties, the visitor industry, the Hawaii Tourism Authority, and other recipients or potential recipients of transient accommodations tax revenues; and


     WHEREAS, pursuant to section 237D-6.5(b)(4), Hawaii Revised Statutes, $103,000,000 of revenues generated from the transient accommodations tax in the State are distributed to each of the counties as follows:  14.5 percent to Kauai County; 18.6 percent to Hawaii County; 22.8 percent to Maui County; and 44.1 percent to the City and County of Honolulu; and

     WHEREAS, eliminating the fixed dollar amount that caps the total transient accommodations tax revenue distributed to the counties would allow the counties to receive a proportional allocation that increases or decreases as does the actual revenue collected; and


     WHEREAS, eliminating this cap would create a fairer, more balanced, and reasonable compromise between competing interests for scarce resources; now, therefore,


     BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2021, that this body is urged to lift the ceiling on transient accommodations tax revenues distributed to the counties; and


     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor; President of the Senate; Speaker of the House of Representatives; and Mayors of the Counties of Kauai, Hawaii, and Maui, and the City and County of Honolulu.









Report Title: 

Transient Accommodations Tax; Counties; Allocation