STAND. COM. REP. NO.  468

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 809

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Tourism, to which was referred H.B. No. 809 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this bill is to:

 

     (1)  Increase temporarily--from July 1, 2011, to June 30, 2015--the transient accommodations tax (TAT) rate assessed on the occupants of resort time share vacation units by two percent; and

 

     (2)  Deposit the revenues collected from the increase into the general fund.

 

     The Department of Taxation supported this bill.  The American Resort Development Association-Hawaii; Wyndham Worldwide; PAHIO Development, Inc.; Marriott Vacation Club International; Resort Owners' Coalition of the American Resort Development Association; Starwood Vacation Ownership; Walt Disney Parks and Resorts; and a concerned individual opposed this measure.  The Tax Foundation of Hawaii offered comments.

 

     Your Committee has amended this bill by:

 

     (1)  Changing the two percent increase in the TAT rate to an unspecified amount;

 

     (2)  Changing the effective date to January 1, 2020, to encourage further discussion; and

 

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     Your Committee notes that the definition of fair market rental value may need to be clarified.

 

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 809, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 809, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Tourism,

 

 

 

 

____________________________

TOM BROWER, Chair