STAND. COM. REP. NO.  1823-12

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 Finance, 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 do not include transient accommodations furnished as part of a tourism industry promotional or marketing activity.

The Hawai‘i Lodging & Tourism Association, Starwood Hotels and Resorts - Hawai‘i and French Polynesia, and Outrigger Hotels and Resorts testified in support of this measure.  The Hawai‘i Tourism Authority and Tax Foundation of Hawaii offered comments.

     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. 3017, S.D. 2, and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair