STAND. COM. REP. NO.  1023-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 3017

      S.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Tourism, to which was referred S.B. No. 3017, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE TRANSIENT ACCOMMODATIONS TAX,"

begs leave to report as follows:

The purpose of this measure is to clarify that the daily $10 taxes on transient accommodations furnished on a complimentary or gratuitous basis include certain types of prizes or gifts, but does not include transient accommodations furnished as part of a tourism industry promotional or marketing activity.

The Department of Taxation, Hawaii Lodging & Tourism Association, Outrigger Enterprises Group, and Starwood Hotels and Resorts testified in support of this measure.  The Hawaii Tourism Authority and Tax Foundation of Hawaii provided comments.  

     Your Committee notes the questions raised by the Hawaii Tourism Authority and respectfully requests the Committee on Finance to ask the Department of Taxation:

     (1)  Is it worth collecting this complimentary or gratuitous transient accommodations tax?

     (2)  Since 2011, when Act 105 went into effect, how much Transient Accommodation Tax was collected from the $10 tax on complimentary or gratuitous accommodations?

     As affirmed by the record of votes of the members of your Committee on Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3017, S.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

TOM BROWER, Chair