Report Title:

Transient Accommodations Tax; Tour Packager

 

Description:

Establishes a surcharge tax of $7.25 a day on all transient accommodations furnished under contract with a tour packager. (SD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1589

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

relating to transient accommodations tax.

 

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

SECTION 1. Section 237D-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Surcharge tax" means the tour packager surcharge tax established under this chapter.

"Tour packager" means a person furnishing transient accommodations through an arrangement with an operator pursuant to a noncommissionable negotiated contract rate."

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

"§237D-2 Imposition and rates. (a) There is levied and shall be assessed and collected each month a tax of[:

(1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994;

(2) Six per cent for the period beginning July 1, 1994, to December 31, 1998; and

(3)] 7.25 per cent for the period beginning on January 1, 1999, and thereafter[;]

on the gross rental or gross rental proceeds derived from furnishing transient accommodations.

(b) In addition to the tax levied under subsection (a), there shall be levied and shall assessed and collected each month a surcharge tax of $7.25 a day on all transient accommodations furnished under contract with a tour packager.

[(b)] (c) Every operator shall pay to the State the tax imposed by [subsection (a)] subsections (a) and (b) as provided in this chapter.

[(c)] (d) There is levied and shall be assessed and collected each month on the occupant of a resort time share vacation unit, a transient accommodations tax of 7.25 per cent on the fair market rental value.

[(d)] (e) Every plan manager shall be liable for and pay to the State the transient accommodations tax imposed by subsection (c) as provided in this chapter. Every resort time share vacation plan shall be represented by a plan manager who shall be subject to this chapter."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act, upon approval, shall take effect on shall apply to taxable years beginning after December 31, 2001.