STAND. COM. REP. NO. 695-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2009

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Tourism, to which was referred H.B. No. 2009 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to expressly include single family homes, multi-family homes, and accessory dwellings as property types which may be subject to the transient accommodations tax and to clarify the applicability of the tax to any property type regardless of the frequency with which a property is furnished to guests.

The Hawai‘i Association of REALTORS and Expedia, Inc. supported this measure. The Department of Taxation, Office of Hawaiian Affairs, and Tax Foundation of Hawaii submitted comments on this measure.

Your Committee has amended this measure by:

(1) Amending the definition of "lease" for purposes of the transient accommodations tax to further clarify the applicability of the tax regardless of the frequency with which a property is furnished to guests and its applicability to accessory dwellings, single family homes, and multi-family homes; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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 H.B. No. 2009, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2009, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

RICHARD H.K. ONISHI, Chair