THE SENATE

S.R. NO.

21

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 
   


SENATE RESOLUTION

 

REQUESTING THE DEPARTMENT OF TAXATION TO ENFORCE THE COLLECTION

OF THE TRANSIENT ACCOMMODATIONS TAX ON UNREGISTERED

VACATION RENTALS, AND REQUESTING THE COUNTIES TO ENFORCE

THE ZONING LAWS AGAINST ILLEGAL OPERATIONS OF VACATION

RENTALS.

 

WHEREAS, chapter 237D, Hawaii Revised Statutes (HRS), imposes the transient accommodations tax (TAT), commonly known as the hotel room tax, on such transient accommodations as hotels, motels, and other places in which lodgings are regularly furnished to transients for consideration; and

WHEREAS, all transient accommodations are required under section 237D-4, HRS, to register with the Department of Taxation and to obtain a TAT license to legally operate; and

WHEREAS, transient accommodations include "bed and breakfast" operations, which are located in private residences in residentially zoned neighborhoods wherein the owner also occupies the same premises; and

WHEREAS, a bed and breakfast operation is a type of "transient residential vacation rental" that is usually located in residentially zoned areas; and

WHEREAS, bed and breakfast operations are typically unregistered and unlicensed, and operate illegally; and

WHEREAS, some operators of bed and breakfasts and of transient residential vacation rentals are in violation of county zoning laws as they lack the required permit, and in violation of the transient accommodations tax laws because they are not registered and licensed; and

WHEREAS, many transient residential vacation rentals and bed and breakfast operations advertise over the internet, so their identities are known or can be known readily to the counties and to the Department of Taxation; and

WHEREAS, pursuant to section 237D-6.5, HRS, the transient accommodations tax revenues are distributed to the counties, convention center enterprise special fund, tourism special fund, state parks special fund, special land and development fund to fund the Hawaii statewide trail and access program, and the transient accommodations tax trust fund; and

WHEREAS, any loss of revenue from the transient accommodations tax has wide-ranging effect on broad categories of programs and county revenues that depend on the TAT; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, that the Department of Taxation is requested to enforce the collection of the transient accommodations tax on bed and breakfast operations and on transient residential vacation rentals, especially those that advertise over the internet; and

BE IT FURTHER RESOLVED that the counties are requested to enforce their respective zoning laws and regulations on bed and breakfast operations and on transient residential vacation rentals, especially those that advertise over the internet; and

BE IT FURTHER RESOLVED that the Department of Taxation and the counties cooperate for the purpose of enforcement; and

BE IT FURTHER RESOLVED that the Department of Taxation, as well as the City and County of Honolulu, County of Kauai, County of Maui, and County of Hawaii each report to the Legislature on the progress and results of their enforcement efforts, no later than twenty days prior to the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that the report include, but not be limited to, proposals for legislation, if any; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Taxation, and the

respective Mayors and County Councils of the City and County of Honolulu, and the Counties of Kauai, Maui, and Hawaii.

 

 

 

OFFERED BY:

_____________________________

Report Title:

TAT Tax Enforcement; Illegal Rentals