Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1730, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to discourage the conversion of hotels to time share or condominium use by imposing a transient accommodations tax surcharge on any converted hotel to ensure a stable hotel inventory and transient accommodations tax revenue base.

The transient accommodations tax surcharge shall be imposed on the owner of the hotel prior to its conversion in an amount equal to the average of fifty per cent of the previous two years of transient accommodations tax revenues collected from the hotel. Your Committee further notes that this measure includes time share units within the definition of transient accommodations.

Your Committee has amended this measure by:

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. 1730, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1730, S.D. 2.