Report Title:
TAT; Vacation Rentals; Bed and Breakfast
Description:
Requires the Department of Taxation (DOTAX) to review the forms and process relating to collecting the TAT from vacation rentals and bed and breakfast establishments; requires DOTAX to report the TAT revenues received from owners of residential property who operate vacation rentals and bed and breakfast establishments; authorizes DOTAX to work with HTA and counties to identify owners of residential property who operate vacation rentals and bed and breakfasts and enforce compliance with TAT laws. (SB1863 HD1)
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THE SENATE |
S.B. NO. |
1863 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO TRANSIENT ACCOMMODATIONS TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State needs a better reporting system with respect to transient accommodations tax revenues collected from residential properties. Better reporting will enable the State to provide a more comprehensive tax system that is more equitable and cost-effective. In addition, better enforcement is needed to ensure that owners of vacation rentals and bed and breakfasts comply with the transient accommodations tax law.
The purpose of this Act is to:
(1) Require the department of taxation to coordinate with the Hawaii tourism authority and each respective county to identify owners of residential properties subject to the transient accommodations tax who operate vacation rentals (owner does not reside on property) and bed and breakfast establishments (owner resides on property);
(2) Allow the department of taxation to coordinate with the Hawaii tourism authority and each respective county to conduct audits of the owners of residential properties who operate vacation rentals and bed and breakfast establishments and take other administrative and enforcement actions necessary to ensure compliance with applicable statutes, rules, ordinances, and other provisions of the law related to the transient accommodations tax;
(3) Require the department of taxation to report annually to the legislature on transient accommodations tax revenues received from owners of residential properties who operate vacation rentals and bed and breakfast establishments; and
(4) Require the department of taxation to review the forms and process relating to the collection of the transient accommodations tax from vacation rentals and bed and breakfast establishments and submit a report on the results of the review to the legislature at least twenty days before the regular session of 2006.
SECTION 2. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237D- Vacation rentals and bed and breakfasts; enforcement; reporting. (a) The department shall coordinate with the Hawaii tourism authority and each county to identify owners of residential properties subject to this chapter who operate vacation rentals (owner does not reside on property) and bed and breakfast establishments (owner resides on property). (b) The department may coordinate with the Hawaii tourism authority and each county to conduct audits of the owners of residential property subject to this chapter who operate vacation rentals and bed and breakfast establishments and take other administrative and enforcement actions necessary to ensure compliance with applicable statutes, rules, ordinances, and other provisions of this chapter.
(c) The department shall report annually to the legislature on tax revenues received under this chapter from owners of residential properties subject to this chapter who operate vacation rentals and bed and breakfast establishments.
(d) For the purposes of this section, the department shall establish criteria to identify a vacation rental and a bed and breakfast establishment."
SECTION 3. The department of taxation shall review the forms and process for the collection of the transient accommodations tax and include separate categories of collection for residential properties used as vacation rentals and bed and breakfast establishments.
The department of taxation shall report the results of its review and report any findings and recommendations to the legislature at least twenty days prior to the convening of the regular session of 2006.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2005.