STAND. COM. REP. NO. 1117

Honolulu, Hawaii

RE: S.B. No. 198

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 198, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to authorize the counties to establish a surcharge on the state transient accommodations tax.

Your Committee received written comments in support of this measure from the Office of the Mayor of the City and County of Honolulu and the Office of the Mayor of the County of Hawaii.

Your Committee received written comments on this measure from the Department of Taxation, Rental by Owner Awareness Association, and Tax Foundation of Hawaii.

Your Committee finds that the transient accommodations tax is imposed on hotels and other forms of short-term lodgings. A portion of transient accommodations revenues is allocated to the counties to offset the cost of tourism-related expenditures. Your Committee also finds that the surcharge authorized by this measure will provide the counties with additional resources to pay for rising expenditures.

Your Committee has amended this measure by:

(1) Deleting a provision giving the Director of Taxation the power to determine the county in which a person is engaged in the business of furnishing transient accommodations;

(2) Inserting provisions regarding the disposition of county surcharge on transient accommodations tax revenues; and

(3) Making technical nonsubstantive amendments for purposes of consistency, clarity, and style.

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 S.B. No. 198, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 198, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair