HB820

SECTION 1. Section 237D-2, Hawaii Revised Statutes, is amended to read as follows:

"§237D-2 Imposition and rates. (a) There is levied and shall be assessed and collected each month a tax of:

(1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994;

(2) Six per cent for the period beginning on July 1, 1994, to December 31, 1998;

(3) 7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009;

(4) 8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010; and

(5) 9.25 per cent for the period beginning on July 1, 2010, and thereafter;

on the gross rental or gross rental proceeds derived from furnishing transient accommodations.

(b) Every transient accommodations broker, travel agency, and tour packager who arranges transient accommodations at noncommissioned negotiated contract rates and every operator or other taxpayer who receives gross rental proceeds shall pay to the State the tax imposed by subsection (a), as provided in this chapter.

(c) There is levied and shall be assessed and collected each month, on the occupant of a resort time share vacation unit, a transient accommodations tax of:

(1) 7.25 per cent on the fair market rental value until December 31, 2015;

(2) 8.25 per cent on the fair market rental value for the period beginning on January 1, 2016, to December 31, 2016; and

(3) 9.25 per cent on the fair market rental value for the period beginning on January 1, 2017, and thereafter.

(d) Every plan manager shall be liable for and pay to the State the transient accommodations tax imposed by subsection (c) as provided in this chapter. Every resort time share vacation plan shall be represented by a plan manager who shall be subject to this chapter.

(e) Notwithstanding the tax rates established in subsections (a)(5) and (c)(3), the tax rates levied, assessed, and collected pursuant to subsections (a) and (c) shall be 10.25 per cent for the period beginning on January 1, 2018, to December 31, 2030; provided that:

(1) The tax revenues levied, assessed, and collected pursuant to this subsection that are in excess of the revenues realized from the levy, assessment, and collection of tax at the 9.25 per cent rate shall be deposited quarterly into the mass transit special fund established under section 248-2.7; and

(2) If a court of competent jurisdiction determines that the amount of county surcharge on state tax revenues deducted and withheld by the State, pursuant to section 248-2.6, violates statutory or constitutional law and, as a result, awards moneys to a county with a population greater than five hundred thousand, then an amount equal to the monetary award shall be deducted and withheld from the tax revenues deposited under paragraph (1) into the mass transit special fund, and those funds shall be a general fund realization of the State.

The remaining tax revenues levied, assessed, and collected at the 9.25 per cent tax rate pursuant to subsections (a) and (c) shall be deposited into the general fund in accordance with section 237D-6.5(b).

(f) There is levied and shall be assessed and collected each month a tax of twenty-five per cent on the gross rental or gross rental proceeds derived from furnishing transient vacation units.

For the purposes of this subsection:

"Bed and breakfast home" means a detached dwelling unit in which overnight accommodations are advertised, solicited, offered, or provided, or any combination thereof, for compensation, including monetary payment, services, or labor of of guests, to guests for less than thirty days, and which is located in the same detached dwelling unit as that occupied by an owner, lessee, operator, or proprietor of the detached dwelling unit.

"Dwelling unit" means a room or rooms connected together, constituting an independent housekeeping unit for a family and that contains a single kitchen. "Dwelling unit" does not include two or more essentially separate structures, except for a token connection such as a covered walkway or trellis.

"Lodging unit" means a room or rooms connected together, constituting an independent living unit for a family and that does not contain any kitchen. "Lodging unit" does not include a resort time share vacation unit.

"Transient vacation unit" means a dwelling unit or lodging unit that is advertised, solicited, offered, or provided, or any combination thereof, for compensation, including monetary payment, services, or labor of transient occupants, to transient occupants for less than thirty days, other than a bed and breakfast home."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	820
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII