STAND. COM. REP. NO. 3414

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1900

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1900, H.D. 1, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO THE TAXATION OF DESTINATION CLUBS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to amend the transient accommodations tax with regard to destination clubs.

 

     More specifically, this measure:

 

     (1)  Establishes that destination clubs shall be taxed at the same rate as resort time share vacation units; and

 

     (2)  Requires destination club membership plan managers to register with the Department of Taxation and maintain certain records.

 

     Your Committee received written comments in support of this measure from Exclusive Resorts.  Written comments in opposition were received from the Department of Taxation.  The Tax Foundation of Hawaii submitted written comments on the measure.

 

     Your Committee finds that destination clubs own various properties in multiple states or countries.  In exchange for membership dues, these clubs provide their members with the right to use or occupy the destination club's facilities in various locations.  However, destination club membership does not confer an ownership interest in the destination club's facilities.  Your Committee further finds that destination clubs are presently subject to the transient accommodations tax, which is codified as chapter 237D, Hawaii Revised Statutes.  Your Committee believes that this measure provides clarification on how the transient accommodations tax is to be imposed on destination clubs.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1900, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair