THE SENATE	S.B. NO.	3017
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

relating to the transient accommodations tax.

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

     SECTION 1.  Section 237D-2, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  There is levied and shall be assessed and collected each month a daily tax of $10 for every transient accommodation that is furnished on a complimentary or gratuitous basis, or otherwise at no charge[, including transient accommodations furnished as part of a package.]; provided that for the purposes of this subsection, "complimentary or gratuitous basis":

(1) Includes transient accommodations furnished without tangible industry development or promotional purposes, such as prize giveaways, contestant winnings, charitable gifts, part of a travel package, and rewards programs; and

(2) Does not include transient accommodations furnished as part of a tourism industry promotional or marketing activity, including familiarization tours, promotions to meeting and event planners, and publicizing the property as part of a marketing program."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2012; provided that the amendments made to section 237D-2, Hawaii Revised Statutes, in section 1 of this Act shall not be repealed when section 237D-2, Hawaii Revised Statutes, is reenacted on June 30, 2015, pursuant to Act 61, Session Laws of Hawaii 2009.

INTRODUCED BY:

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Report Title:

Transient Accommodations Tax; Complimentary Rooms; Daily $10 Tax

Description:

Clarifies that the daily $10 tax on a transient accommodation furnished on a complimentary or gratuitous basis includes transient accommodations furnished without tangible industry development or promotional purposes, but does not include transient accommodations furnished as part of a tourism industry promotional or marketing activity.

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