STAND. COM. REP. NO. 1047-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2081

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2081, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO GOVERNMENT,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Increase the Transient Accommodations Tax rate to 10.25 percent;

(2) Require an additional $50 Transient Accommodation Tax to be levied per night for each furnishing of a transient accommodation; and

(3) Appropriate funds for the Department of Land and Natural Resources for the protection, management, and restoration of the State's natural resources.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Hyperspective; Trust for Public Land; Democratic Party of Hawaiʻi; Citizens' Climate Lobby Hawaiʻi; Care for ʻĀina Now Coalition; Wild Kids Hawaiʻi; Surfrider Foundation, Hawaiʻi Region; Kuaʻāina Ulu ʻAuamo; Kupu; The Nature Conservancy, Hawaiʻi and Palmyra; Oceanic Preservation Society; and nine individuals. Your Committee received testimony in opposition to this measure from the Kohala Coast Resort Association; Kamaʻāina Occupied Short Term Rentals Oʻahu; Grassroot Institute of Hawaii; American Resort Development Association - Hawaiʻi; Maui Hotel & Lodging Association; Hawaiʻi Lodging & Tourism Association; Maui Chamber of Commerce; Coral Tree Residences Collection; and numerous individuals. Your Committee received comments on this measure from the Office of the Governor; Hawaiʻi Tourism Authority; Department of Taxation; Tax Foundation of Hawaii; and one individual.

Your Committee has amended this measure by:

(1) Adding a $10,000 per day penalty for nonpayment of Transient Accommodation Tax;

(2) Amending the additional $50 Transient Accommodation Tax to a $20 tax per night for the furnishing of a transient accommodation in exchange for points, miles, or other amounts provided through a membership, loyalty, or rewards program;

(3) Changing the base Transient Accommodations Tax rate and temporarily increased rate to unspecified rates; and

(4) 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2081, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2081, H.D. 2.

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

____________________________

KYLE T. YAMASHITA, Chair