STAND. COM. REP. NO.812

Honolulu, Hawaii

, 2001

RE: H.B. No. 1589

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1589 entitled:

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

begs leave to report as follows:

The purpose of this bill is to extend the Transient

Accommodations Tax (TAT) base to travel agencies and tour packagers furnishing transient accommodations through noncommissionable negotiated contract rates.

The Mayor of the City and County of Honolulu, Office of the Managing Director of the City and County of Honolulu, Mayor of the County of Hawaii, Hawaii State Teachers Association, Hawaii State AFL-CIO, IWLU Local 142, and several members of the Maui County Council submitted testimony in support of this bill. The Department of Taxation, Tax Foundation of Hawaii, and an individual submitted comments on this bill. The Hawaii Hotel Association, Outrigger Hotels and Resort, Ohana Hotel Group, and American Society of Travel Agents submitted testimony in opposition to this bill.

Your Committee has amended this bill by:

(1) Changing the effective date to apply to taxable years beginning after December 31, 2001; and

(2) Making technical, nonsubstantive changes for purposes of style and clarity.

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. 1589, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1589, H.D. 1.

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

____________________________

DWIGHT Y. TAKAMINE, Chair