TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to increase the allocation of the transient accommodations tax revenues to the counties. On July 1, 2017, the allocation to the counties was to revert to $93,000,000 annually. This Act increases the allocation in recognition of the budgetary needs of the counties and services they provide to residents and visitors.
SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) 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)] (A) Of the [ $82,000,000]
revenues allocated[ :] to the tourism special fund:
(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)] (B) 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 for fiscal year 2014-2015,
$103,000,000 for fiscal year 2015-2016, $103,000,000 for fiscal year 2016-2017,
$93,000,000] $108,000,000 for each fiscal year thereafter
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; and
(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.
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 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Transient Accommodations Tax; Allocation; Tourism Special Fund; Counties
Repeals the requirement that a certain amount of the allocation of transient accommodations tax revenues to the tourism special fund be used for the development and implementation of initiatives to take advantage of expanded visa programs and increased travel opportunities for international visitors to Hawaii. Increases the allocation to the counties from $93,000,000 to $108,000,000 for fiscal years beginning after 6/30/2017. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.