STAND. COM. REP. NO. 34

Honolulu, Hawaii

, 2021

RE: H.B. No. 1043

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Labor & Tourism, to which was referred H.B. No. 1043 entitled:

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

begs leave to report as follows:

The purpose of this measure is to amend chapter 237D, Hawaii Revised Statutes, relating to the transient accommodations tax (TAT) by:

(1) Repealing the misdemeanor criminal penalty for failing to register under that chapter and replacing it with a monetary fine structure;

(2) Replacing references to operator or plan manager with person or taxpayer;

(3) Clarifying that a certificate of registration is required for persons who post advertisements for the furnishing of a transient accommodation;

(4) Making the personal liability provision under the general excise tax law applicable to the TAT; and

(5) Making various other technical amendments.

Your Committee received testimony in support of this measure from the Department of Taxation and one individual. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that this measure seeks to create parity between certain provisions of the general excise tax and the TAT and will assist the Department of Taxation in closing loopholes in the imposition of the TAT.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1043, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1043, H.D. 1, and be referred to your Committee on Economic Development.

Respectfully submitted on behalf of the members of the Committee on Labor & Tourism,

____________________________

RICHARD H.K. ONISHI, Chair