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. 1863, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require the Department of Taxation (Department) to review the forms and process relating to the collection of the transient accommodations tax from "vacation rentals" and "bed and breakfast" establishments and include these units as separate categories of tax collection under the transient accommodations tax.

The measure also requires the Department to establish other criteria to identify a "vacation rental" and a "bed and breakfast establishment" and report the transient accommodations tax revenues received from these types of establishments. The Department is to report to the Legislature twenty days before the convening of the Regular Session of 2006 on the results of its review and its findings and recommendations.

Your Committee wishes to note that, although the Department is required to establish other criteria to identify these two types of units, more definitive statutory definitions are needed. Accordingly, your Committee has amended this measure by changing the effective date to July 1, 2099, for the purpose of promoting further discussion.

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. 1863, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1863, S.D. 2.