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HOUSE OF REPRESENTATIVES

H.B. NO.

2486

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE DISTRIBUTION OF THE TRANSIENT ACCOMMODATIONS TAX.

 

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

SECTION 1. The legislature recognizes that general fund revenues have declined as a result of the tragic incidents of September 11, 2001. In the aftermath of those events, there has been a general decline in both business and leisure travel throughout the world. This has resulted in a significant decrease in visitor arrivals and consequent spending in Hawaii. That decrease has resulted in a significant decline in revenues to the general fund.

The legislature further finds that the state must make adjustments in the sources of funding that go into the general fund so that revenues that support education, social service programs, and other high priority program areas remain appropriate to the need for those vital concerns.

The purpose of this Act is to reduce the percentage of the transient accommodation tax allocated to the Hawaii tourism authority and retain that amount in the general fund; provided that the tourism special fund shall receive a minimum annual aggregate amount of $61,000,000 subject to moneys available in

the transient accommodations tax trust fund established in this Act.

SECTION 2. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§ 237D- Transient accommodations tax trust fund.

(a) There is established in the state treasury the transient accommodations tax trust fund to be administered by the director of finance, into which shall be deposited the revenues prescribed by section 237D-6.5 (b).

(b) All investment earnings from moneys in the trust fund shall be credited to the general fund.

(c) The purpose of the trust fund is to serve as a holding account for transient accommodations tax revenues to provide that the tourism special fund receives at least $61,000,000 in transient accommodations tax revenues in the aggregate for each fiscal year.

(d) In the event that the amount of transient accommodations tax revenues distributed to the tourism special fund pursuant to section 237D-6.5 (b) (2) is projected by the director of finance to be less than $61,000,000 in the aggregate in a fiscal year, then the director of finance shall, at such times and in such amounts that the director shall reasonably determine, deposit moneys from the trust fund to the tourism special fund to provide the tourism special fund with a minimum of $61,000,000 in transient accommodations tax revenues in the aggregate for a fiscal year, provided that any deposit from the trust fund to the tourism special fund shall be limited to the moneys available in the trust fund.

(e) In the event that the tourism special fund receives less than $61,000,000 in transient accommodations tax revenues in the aggregate for a fiscal year even after receiving moneys from the trust fund, then such a shortfall is non-cumulative and does not represent a claim against future distributions from the trust fund.

(f) No deposit from the trust fund to the tourism special fund shall be made that would cause the tourism special fund to receive more than $61,000,000 in transient accommodations tax revenues in the aggregate for a fiscal year.

(g) Any moneys remaining in the trust fund at the end of each fiscal year shall be credited to the general fund; provided that in the event that the tourism special fund receives at least $61,000,000 in transient accommodations tax revenues in the aggregate during the course of a fiscal year, then any moneys in the trust fund shall be credited to the general fund from that occurrence."

SECTION 3. Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) [Beginning on January 1, 1999[,] revenues] Revenues collected under this chapter shall be distributed as follows:

(1) 17.3 per cent of the revenues collected under this chapter shall be deposited into the convention center capital and operations fund established under section 206X-l0.5;

(2) [37.9] 32.6 per cent of the revenues collected under this chapter shall be deposited into the tourism special fund established under section 201B-ll for tourism promotion and visitor industry research;

(3) 44.8 per cent of the revenues collected under this chapter shall be transferred 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[.]; and

(4) The remaining revenues shall be deposited into the transient accommodations tax trust fund established under section 237D-   .

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."

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, 2003.

INTRODUCED BY:

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