HB2604 HD2

SECTION 1. The legislature finds that the performing arts are vital to Hawaii's cultural identity, visitor experience, and creative economy and that live performances provide meaningful opportunities for community connection, cultural expression, and economic activity across the State.

The legislature further finds that Act 131, Session Laws of Hawaii 2025, established the performing arts grants program and special fund to support performing arts in the State by providing grants for the coordination, planning, promotion, marketing, and execution of performing arts events.

The purpose of this Act is to establish a modest performing arts ticket surcharge on certain ticket sales to provide a stable, dedicated source of revenue for the performing arts grants special fund to strengthen and sustain performing arts statewide, expand access to arts education for youth, and support the continued growth and betterment of Hawaii's performing arts community.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Performing arts ticket surcharge. (a) In addition to the tax imposed by this chapter, a performing arts ticket surcharge of $1 shall be levied and assessed upon the primary sale ticket price for each ticket for admission to a covered event held in the State sold or distributed by a primary venue ticket provider. The surcharge shall be imposed upon the purchaser of the ticket and shall be collected by the primary venue ticket provider at the time of sale.

(b) The primary venue ticket provider shall disclose the surcharge as a separate line item on the ticket, receipt, invoice, or electronic confirmation provided to the purchaser at the time of sale. All surcharge amounts collected pursuant to this section shall be deemed to be held in trust for the State until remitted to the department.

(1) That is primarily performed by students enrolled at a school in the University of Hawaii system or public school or public charter school;

(2) For which the primary sale ticket price is $35 or less; or

(3) That is produced by a nonprofit organization that:

(A) Is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code; and

(B) Has as its primary mission the provision of performing arts education to minors.

(d) A primary venue ticket provider claiming that a performing arts ticket it sold or distributed is not subject to the performing arts ticket surcharge, pursuant to subsection (c), shall, in addition to the requirements of section 237-41, keep in the English language within the State, and preserve for a period of three years, suitable records to verify qualification of the exemption under this section, and such other books, records of account, and invoices as may be required by the department, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof.

(e) Each primary venue ticket provider shall file periodic returns, at such times and in such manner as prescribed by the department, stating:

(1) The number of tickets sold or distributed during the reporting period that are subject to the surcharge;

(2) The number of tickets claimed as exempt pursuant to subsection (c); and

(3) The total surcharge amount collected during the reporting period.

The surcharge shall be remitted to the department at the time the return is filed.

(f) Except as otherwise provided in this section, the surcharge imposed under this section shall be administered, assessed, collected, and enforced in the same manner as the taxes imposed under this chapter. All applicable provisions of this chapter relating to the administration of taxes, including penalties and interest, shall apply to the surcharge imposed by this section.

(g) All surcharge revenues collected by the department pursuant to this section shall be deposited into the state treasury and credited to the performing arts grants special fund established under section 9-19.5.

(h) As used in this section:

"Covered event" means a performing arts event that is offered for sale to the general public and marketed for commercial entertainment, for which tickets are offered for sale to the general public for an admission charge.

"Performing arts" has the same meaning as in section 9‑1.

"Performing arts event" means a live, in-person event held before an audience for entertainment, including a concert, musical performance, theatrical performance, dance performance, comedy show, magic show, spoken word performance, or other staged live entertainment, whether presented indoors or outdoors.

"Primary venue ticket provider" means an owner or operator of a venue, manager or provider of a performing arts event, performing arts event promoter, online ticketing platform, provider of ticketing services, or agent of the owner, operator, manager, or provider that engages in the primary sale of performing arts event tickets or retains the authority to otherwise distribute performing arts event tickets.

"Ticket price" means the total amount required to be paid for admission to a covered event, including any required service fee, facility fee, processing fee, or other mandatory charge, but excluding taxes imposed under this chapter and any optional donation.

"Venue" means a facility, space, or location in the State where a performing arts event is held, whether indoors or outdoors, including an arena, stadium, amphitheater, theater, concert hall, convention facility, hotel ballroom, outdoor performance space, or similar place of public assembly."

SECTION 3. Section 9-19.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established in the state treasury the performing arts grants special fund, to be administered by the foundation. The revenues of the special fund shall consist of:

(1) Appropriations made by the legislature;

(2) Revenues or moneys derived from the foundation's operations;

(3) Surcharge revenues collected by the department of taxation pursuant to section 237- and deposited into the state treasury to the credit of the fund;

[~~(3)~~] (4) Grants, gifts, and donations received by the foundation; and

[~~(4)~~] (5) All interest earned on moneys deposited in the fund.

The special fund shall be used for the coordination, planning, promotion, marketing, and execution of performing arts events."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	2604
THIRTY-THIRD LEGISLATURE, 2026		H.D. 2
STATE OF HAWAII