STAND. COM. REP. NO.774

Honolulu, Hawaii

, 2003

RE: S.B. No. 1040

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Tourism and Economic Development and Ways and Means, to which was referred S.B. No. 1040, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSIENT ACCOMMODATIONS TAX,"

beg leave to report as follows:

The purpose of this measure is to require ten per cent of the excess revenues in the tourism special fund to be deposited into the special land development fund for the Hawaii statewide trail and access program. The measure also removes the $500,000 ceiling on the amount in the special fund that may be used for trails and trail accesses.

Testimony in support of this measure was received from the Board of Land and Natural Resources (DLNR), The Nature Conservancy, The Koolau News, Windward Ahupuaa Alliance, and one individual. Comments were submitted by the Department of Taxation.

This measure effectuates the intent of Act 250, Session Laws of Hawaii (SLH) 2002, which authorized a portion of the TAT revenues to be expended on the Hawaii trails and access program, which is funded from the special land and development fund. However, Act 250, SLH 2002, did not specify a deposit into any special fund. This measure corrects that omission.

The effect of this measure, as well as Act 250, SLH 2002, is to make dedicated moneys available for the Hawaii statewide trail and access program, which is being enjoyed by increasing number of tourists and residents, without added cost to the general fund.

Your Committees view this measure as promoting ecotourism, a new marketing niche for attracting visitors. Hawaii is unique in its natural beauty, which most tourists find attractive. Ecotourism is a means of enhancing the tourist experience.

As affirmed by the records of votes of the members of your Committees on Tourism and Economic Development and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1040, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Tourism and Economic Development and Ways and Means,

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CAROL FUKUNAGA, Chair

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DONNA MERCADO KIM, Chair

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BRIAN T. TANIGUCHI, Chair