STAND. COM. REP. NO. 3357

Honolulu, Hawaii

RE: S.B. No. 2922

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred S.B. No. 2922, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to make various statutory amendments to simplify and streamline the administration of the transient accommodations tax.

Specifically, this measure amends the State's transient accommodations tax law to:

(1) Replace the misdemeanor penalty for failing to obtain a transient accommodations tax registration identification number with a monetary fine;

(2) Authorize the Director of Taxation to hold certain controlling officers personally liable for certain violations;

(3) Replace the term "operator or plan manager" with "person" or "taxpayer" to close an enforcement loophole and clarify the applicability of the transient accommodations tax;

(4) Broaden the definition of the term "operator" to clarify that it includes any person who engages in any activity that results in the collection of receipts that are defined as gross rental proceeds under transient accommodations tax law; and

(5) Repeal outdated references to filing of returns and remittance of payments to specific taxation districts.

Your Committees received written comments in support of this measure from the Department of Taxation.

Your Committees received written comments on this measure from the Tax Foundation of Hawaii.

Your Committees find that this measure will repeal outdated provisions, accommodate recent changes, and clarify other provisions of the State's transient accommodations tax, thereby ensuring the proper administration of the law.

Your Committees have amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2922, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2922, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair