STAND. COM. REP. NO. 3411

Honolulu, Hawaii

RE:    H.B. No. 1671

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1671, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to change the amount of transient accommodations tax revenues allocated to the counties from $93,000,000 to an unspecified percentage of revenues collected.

     Your Committee received written comments in support of this measure from the City and County of Honolulu Office of the Mayor, the County of Hawaii Office of the Mayor, three County of Maui Council Members, two County of Hawaii Council Members, four County of Kauai Council Members, the Maui County Council, the Hawaii Council of Mayors, the Hawaii County Council, the Kauai County Council Chair, the Kauai County Council Vice Chair, two City and County of Honolulu City Council Members, the Paia Youth and Cultural Center, ILWU Local 142, the Hawaii Association of Vacation Rental Managers, and five individuals.  Written comments in opposition were received from the Department of Budget and Finance.  The Department of Taxation, Hawaii Lodging and Tourism Association, Maui Hotel and Lodging Association, and Tax Foundation of Hawaii submitted written comments.

     Your Committee finds that this measure may increase the allocation of revenues to the counties that may be used to provide for public safety, parks, road maintenance, and visitor-related services.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1671, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair