STAND. COM. REP. NO. 959

Honolulu, Hawaii

, 2005

RE: H.B. No. 997

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 997 entitled:

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

begs leave to report as follows:

The purpose of this bill is to increase funds for tourism-related programs and infrastructure by increasing the allocation of transient accommodations tax (TAT) collections to the Tourism Special Fund (TSF) to 35.4 percent and increasing the limit on funds deposited in the Convention Center Enterprise Special Fund (CCESF) to $35,000,000. In addition, this bill:

(1) Repeals the TAT Trust fund;

(2) Repeals the existing allocation of TAT collections to the State Parks Special Fund (SPSF) and the Special Land and Development Fund (SLDF); and

(3) Distributes 2.5 percent of TAT collections as follows:

(A) 36 percent to be deposited in the SPSF;

(B) 4 percent to be deposited in the SLDF; and

(C) 60 percent to be deposited into the general fund.

The Hawaii Tourism Authority, Waikiki Improvement Association, Hawaii Business Roundtable, Hawaii Hotel & Lodging Association, and Outrigger Hotels supported this bill. The Department of Business, Economic Development, and Tourism and Department of Land and Natural Resources supported the intent of this measure. The Department of Budget and Finance and Department of Taxation opposed this bill. The Tax Foundation of Hawaii and Hawaii Resort Developers Conference offered comments.

Your Committee has amended this bill by:

(1) Changing the limit on funds deposited into the CCESF to an unspecified amount to promote further discussion;

(2) Changing the percentage allocation of TAT collections to the TSF, SPSF, SLDF, and the general fund to unspecified percentages to promote further discussion;

(3) Changing the effective date to July 1, 2010, to promote further discussion; and

(4) Making technical, nonsubstantive amendments for style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 997, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 997, H.D. 1.

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

 

____________________________

DWIGHT TAKAMINE, Chair