STAND. COM. REP. NO. 1568

Honolulu, Hawaii

RE: S.R. No. 72

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Public Safety, Intergovernmental, and Military Affairs, to which was referred S.R. No. 72 entitled:

"SENATE RESOLUTION URGING THE DEPARTMENT OF TAXATION TO CONDUCT A STUDY TO DETERMINE THE AMOUNT OF TRANSIENT ACCOMMODATIONS TAX REVENUES THAT WOULD BE ALLOCATED TO EACH COUNTY IF THE ALLOCATION WERE TO BE RECALCULATED BASED UPON POPULATION GROWTH FROM 2010 TO 2017,"

beg leave to report as follows:

The purpose and intent of this measure is to urge the Department of Taxation to conduct a study to determine the amount of transient accommodations tax revenues that would be allocated to each county if the allocation were recalculated based upon the population growth from 2010 to 2017.

Your Committees did not receive any testimony on this measure.

Your Committees find that under existing law, $103 million of transient accommodations tax revenues are distributed to the counties as follows: 14.5 percent to Kauai County, 18.6 percent to Hawaii County, 44.1 percent to the City and County of Honolulu, and 22.8 percent to Maui County. Your Committees also find that the counties use transient accommodations tax revenue for general government purposes, which includes services such as police and fire protection, park and beach management, and lifeguard services, which benefit visitors and residents. Your Committees further find that according to United States Census data, from 2010 to 2017, the population of the neighbor island counties (Hawaii 8.3 percent, Kauai 7.6 percent, and Maui 7.4 percent) grew more rapidly than that of the City and County of Honolulu (3.7 percent). This measure urges the Department of Taxation to conduct a study to determine the amount of transient accommodations tax revenues that would be allocated to each county if the allocation were to be recalculated based on population growth during that time period.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 72 and recommend that it be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ GLENN WAKAI, Chair