Report Title:

Transient Accommodations Tax; Culturally-Related Programs

Description:

Provides a vehicle to increase the TAT to pay for culturally-related programs.

THE SENATE	S.B. NO.	279
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TRANSIENT ACCOMMODATIONS TAX.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 201B-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The authority may enter into contracts and agreements that include the following:

     (1)  Tourism promotion, marketing, and development;

     (2)  Market development-related research;

     (3)  Product development and diversification issues focused on visitors;

     (4)  Promotion, development, and coordination of sports-related activities and events;

(5) Promotion, development, and coordination of culturally-related activities and events, including but not limited to hula shows and Hawaiiana-related events that focus on Hawaii's people and heritage;

    [(5)] (6)  Promotion of Hawaii, through a coordinated statewide effort, as a place to do business, including high technology business, and as a business destination;

    [(6)] (7)  Reduction of barriers to travel;

   [[(7)]](8)  Marketing, management, use, operation, or maintenance of the convention center facility, including the purchase or sale of goods or services, logo items, concessions, sponsorships, and license agreements, or any use of the convention center facility as a commercial enterprise; provided that effective January 1, 2003, and thereafter the contract for management of the convention center facility shall include marketing for all uses of the facility; and

   [[(8)]](9)  Any and all other activities necessary to carry out the intent of this chapter;

provided that for any contract or agreement valued at $25,000 and over, the authority shall provide notice to the speaker of the house of representatives and the president of the senate on the same day that such notification is given to the governor."

     SECTION 2.  Section 237D-2, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

"(a)  There is levied and shall be assessed and collected each month a tax of:

    [(1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994;

(2) Six per cent for the period beginning July 1, 1994, to December 31, 1998; and

(3)] (1)  7.25 per cent for the period beginning on January 1, 1999, [and thereafter;] to December 31, 2009; and

(2)     per cent for the period beginning on January 1, 2010, and thereafter;

on the gross rental or gross rental proceeds derived from furnishing transient accommodations."

     2.  By amending subsection (c) to read:

     "(c)  There is levied and shall be assessed and collected each month on the occupant of a resort time share vacation unit, a transient accommodations tax of [7.25] per cent on the fair market rental value."

     SECTION 3.  Section 237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Revenues collected under this chapter shall be distributed as follows, with the excess revenues to be deposited into the general fund:

     (1)  17.3 per cent of the revenues collected under this chapter shall be deposited into the convention center enterprise special fund established under section 201B-8; provided that beginning January 1, 2002, if the amount of the revenue collected under this paragraph exceeds $33,000,000 in any calendar year, revenues collected in excess of $33,000,000 shall be deposited into the general fund;

     (2)  34.2 per cent of the revenues collected under this chapter shall be deposited into the tourism special fund established under section 201B-11 for tourism promotion and visitor industry research; provided that the difference in transient accommodations tax proceeds deposited into the tourism special fund that are attributable to the increase in the tax rate as of January 1, 2010, shall be used exclusively for culturally related activities and events under section 201B-7(a)(5); provided further that beginning on July 1, 2002, of the first $1,000,000 in revenues deposited:

         (A)  Ninety per cent shall be deposited into the state parks special fund established in section 184-3.4; and

         (B)  Ten per cent shall be deposited into the special land and development fund established in section 171-19 for the Hawaii statewide trail and access program;

          provided that of the 34.2 per cent, 0.5 per cent shall be transferred to a sub-account in the tourism special fund to provide funding for a safety and security budget, in accordance with the Hawaii tourism strategic plan 2005-2015; provided further that of the revenues remaining in the tourism special fund after revenues have been deposited as provided in this paragraph and except for any sum authorized by the legislature for expenditure from revenues subject to this paragraph, beginning July 1, 2007, funds shall be deposited into the tourism emergency trust fund, established in section 201B-10, in a manner sufficient to maintain a fund balance of $5,000,000 in the tourism emergency trust fund; and

     (3)  44.8 per cent of the revenues collected under this chapter shall be transferred as follows:  Kauai county shall receive 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall receive 44.1 per cent, and Maui county shall receive 22.8 per cent.

     All transient accommodations taxes shall be paid into the state treasury each month within ten days after collection and shall be kept by the state director of finance in special accounts for distribution as provided in this subsection."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval and apply to taxable years beginning after December 31, 2009.

INTRODUCED BY:

_____________________________