STAND. COM. REP. NO.  1603

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 1111

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 1111, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to provide additional revenue for the State by increasing the transient accommodations tax to an unspecified amount, beginning July 1, 2009, and requiring any additional revenue generated from the increase to be deposited into the general fund.

     The Hawaii Government Employees Association supported this bill.  The Department of Business, Economic Development, and Tourism, Department of Taxation, Hawaii Tourism Authority,  Chamber of Commerce of Hawaii and its Tourism Committee, Hawaii Hotel & Lodging Association, Westin Maui Resort & Spa, Kahana Falls Resort, Starwood Vacation Ownership, Imperial Hawaii Resort, Wyndham Worldwide, Hawaii Association of REALTORS, ARDA-Hawaii, Aston Hotels & Resorts, Doubletree Alana Hotel, Hawaii Escrow & Title, Inc., Outrigger Hotels, and several concerned individuals opposed this bill.  The Tax Foundation of Hawaii and a concerned individual submitted comments.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2020, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1111, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1111, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair