CONFERENCE COMMITTEE REP. NO. 88-18

Honolulu, Hawaii

, 2018

RE: S.B. No. 2699

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2699, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to specify that resort fees, which are any mandatory charges or surcharges imposed for the use of a transient accommodation's property, services, or amenities, are included in the gross rental proceeds amount upon which the transient accommodations tax is calculated.

Your Committee on Conference finds that this measure clarifies the treatment of resort fees for purposes of assessing the transient accommodations tax.

Your Committee on Conference amended this measure by:

(1) Amending the definition of "resort fee" to include fees, whether or not they are mandatory; and

(2) Requiring the Department of Taxation to adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to further define the definitions added or amended by this measure; provided that the Department shall not be prevented from levying, assessing, or collecting taxes resulting from the imposition of resort fees prior to the adoption of these rules.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2699, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2699, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ RICHARD H.K. ONISHI Co-Chair	____________________________ DONOVAN M. DELA CRUZ Chair
____________________________ SYLVIA LUKE Co-Chair	____________________________ GILBERT S.C. KEITH-AGARAN Co-Chair