Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1461 entitled:

begs leave to report as follows:

The purpose of this measure is to require the counties to earmark two per cent of their transient accommodations tax allocations to tourism promotions and visitor industry enhancements.

Your Committees on Tourism and Transportation, Military Affairs and Government Operations previously received favorable testimony from the Hawaii Tourism Authority and the Maui Hotel Association. Testimony was also received from the Department of Taxation, and a Kauai county council member. The Tax Foundation of Hawaii submitted comments.

Your Committee finds that reinvestment of transient accommodations tax revenues into tourism promotions and visitor industry enhancements ensure that the State's primary economic engine remains strong and vital. By requiring the counties to join the State in this objective, tourism promotion and visitor industry enhancement costs are more equitably apportioned between the counties and the State for the mutual benefit of both.

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 S.B. No. 1461 and recommends that it pass Third Reading.