Bill Text: HI HB2778 | 2024 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-23 - The committee(s) on FIN recommend(s) that the measure be deferred. [HB2778 Detail]
Download: Hawaii-2024-HB2778-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2778 |
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THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the operation of transient vacation rental units in areas that are not zoned as resort areas creates adverse impacts in the affected areas. The legislature further finds that additional funds are necessary to mitigate these adverse impacts.
Accordingly, the purpose of this Act is to establish a surcharge on the state transient accommodations tax for transient vacation rental units located outside a zoned resort area.
SECTION 2. Section 237D-1, Hawaii Revised Statutes, is amended as follows:
1. By adding four new definitions to be appropriately inserted and to read:
""Booking service" means any reservation or payment service provided by a person or entity that facilitates a transient vacation rental transaction between an operator and a prospective renter, and for which the person or entity collects or receives, directly or indirectly through an agent or intermediary, a fee in connection with the reservation or payment services provided for the transient vacation rental transaction.
"County" means the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; provided that the county of Maui shall include the county of Kalawao for the purposes of this section.
"Hosting platform" means a person or entity that participates in the transient vacation rental business by providing, and collecting or receiving a fee for, booking services through which an operator may offer a transient vacation rental unit. Hosting platforms usually, though not necessarily, provide booking services through an online platform that allows an operator to advertise the transient vacation rental unit through a website provided by the hosting platform and the hosting platform conducts a transaction by which potential renters arrange use and payment, whether the renter pays rent directly to the operator or to the hosting platform. "Transient vacation rental" means "short-term rental home", "short-term vacation rental", "transient vacation rental", "transient vacation unit", or "transient vacation use", as defined by county ordinance."
2. By amending the definition of "operator" to read:
""Operator" means any
person operating a transient accommodation[,] or transient vacation
rental, whether as owner or proprietor or as lessee, sublessee, mortgagee
in possession, licensee, or otherwise, or engaging or continuing in any service
business which involves the actual furnishing of transient accommodation[.]
or transient vacation rental."
SECTION 3. 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) Beginning January 1, 2025, with regard to a
transient vacation rental located outside of a zoned resort area, an additional
surcharge shall be applied to taxes levied, assessed, and collected pursuant to
subsections (a), (c), and (e). The
amount of the surcharge shall be equal to the greater of:
(1) Five per cent on the gross rental or gross rental proceeds derived from furnishing transient accommodations;
(2) Five per cent on the fair market rental value of a resort time share vacation unit; or
(3) $25 per day."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on January 1, 2025.
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INTRODUCED BY: |
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Report Title:
Transient Accommodations Tax; Transient Vacation Rentals; Resort Areas; Surcharge
Description:
Establishes a surcharge on the state transient accommodations tax for transient vacation rental units located outside a zoned resort area.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
