STAND. COM. REP. NO. 514-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2011

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. 2011 entitled:

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

begs leave to report as follows:

The purpose of this measure is to enhance enforcement of the State's Transient Accommodations Tax (TAT) law by increasing the annual cap on the Tax Administration Special Fund for the special enforcement section from $700,000 to $1,000,000, and requiring that the first $300,000 collected be deposited into a special account exclusively for the operations of the special enforcement section in enforcing the TAT law.

The Department of Taxation, Tax Foundation of Hawaii, and Airbnb provided comments on this measure.

Your Committee has amended this measure by changing its effective date to July l, 2050, to encourage further discussion.

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. 2011, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2011, 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