Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1589, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to amend the transient accommodations tax law to add new definitions of "surcharge tax" and "tour packager" and to levy a surcharge tax of $7.25 per day on all transient accommodations furnished under contract with a tour packager.

Testimony in support of this measure was submitted by ILWU Local 142. The National Tour Association and Condominium Rentals Hawaii submitted testimony in opposition.

In considering this measure, your Committee discussed a graduated surcharge tax as an option to the single rate surcharge. A graduated surcharge would assess a higher rate for higher priced rooms. Your Committee will continue to consider this option during the conference deliberations on this measure.

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. 1589, H.D. 1, S.D. 1, and recommends that it pass Third Reading.