STAND. COM. REP. NO. 1235

Honolulu, Hawaii

, 2019

RE: H.B. No. 419

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 419, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to incentivize the counties to enact certain laws and ordinances relating to transient accommodations and short-term vacation rentals by establishing a program whereby counties can qualify to receive up to $1,000,000 from Transient Accommodations Tax (TAT) revenues if the counties comply with specified conditions.

The Hawai‘i Lodging & Tourism Association, Kohala Coast Resort Association, and Maui Hotel & Lodging Association provided testimony in support of this measure. The Department of Budget and Finance, Mayor of the County of Hawai‘i, Tax Foundation of Hawaii, Airbnb, and Rental By Owner Awareness Association provided comments.

Your Committee has amended this measure by:

(1) Changing the amount of TAT revenues the counties are eligible to receive and the amount appropriated to unspecified amounts; 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 419, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 419, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair