Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Tourism and Culture, to which was referred H.B. No. 448 entitled:

begs leave to report as follows:

The purpose of this bill is to exempt from the transient accommodations tax (TAT) income received from the rental of accommodations for less than a 25-hour period for dinner parties and other such gatherings, where the primary intent of the rental is not to acquire lodging.

MC&A, Inc., submitted testimony in support of this measure. The Hawaii Hotel & Lodging Association supported the intent of this measure. The Hawaii Hotel Association opposed this measure. The Department of Taxation (DoTax) and the Tax Foundation of Hawaii offered comments.

Your Committee notes that it may be more feasible for DoTax to find an administrative solution to carry out the intent of this measure, rather than via legislation.

As affirmed by the record of votes of the members of your Committee on Tourism and Culture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 448 and recommends that it pass Second Reading and be referred to the Committee on Finance.