| 1 | 1 | | THE SENATE S.B. NO. 2053 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT RELATING TO THE COUNTY TRANSIENT ACCOMMODATIONS TAX. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: |
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| 3 | 3 | | THE SENATE S.B. NO. 2053 |
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| 4 | 4 | | THIRTY-FIRST LEGISLATURE, 2022 |
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| 5 | 5 | | STATE OF HAWAII |
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| 7 | 7 | | THE SENATE |
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| 9 | 9 | | S.B. NO. |
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| 11 | 11 | | 2053 |
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| 12 | 12 | | |
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| 13 | 13 | | THIRTY-FIRST LEGISLATURE, 2022 |
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| 17 | 17 | | STATE OF HAWAII |
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| 31 | 31 | | A BILL FOR AN ACT |
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| 37 | 37 | | RELATING TO THE COUNTY TRANSIENT ACCOMMODATIONS TAX. |
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| 43 | 43 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: |
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| 47 | 47 | | SECTION 1. Chapter 248, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§248- County transient accommodations tax; disposition of proceeds. (a) If adopted by county ordinance, all county transient accommodations tax revenues collected by the director of taxation shall be paid into the state treasury quarterly, within ten working days after collection, and shall be placed by the director of finance into special accounts. Out of the revenues generated by county transient accommodations taxes paid into each respective state treasury special account, the director of finance shall deduct per cent of the gross proceeds of a respective county's transient accommodations tax to reimburse the State for the costs of assessment, collection, disposition, and oversight of the county transient accommodations tax incurred by the State. Amounts retained shall be general fund realizations of the State. (b) The amounts deducted for costs of assessment, collection, disposition, and oversight of county transient accommodations taxes shall be withheld from payment to the counties by the State out of the county transient accommodations tax revenues collected for the current calendar year. (c) For the purpose of this section, the costs of assessment, collection, disposition, and oversight of any county transient accommodations tax shall include any and all costs, direct or indirect, that are deemed necessary and proper to effectively administer this section and section 237D-2.5. (d) After the deduction and withholding of the costs under subsections (a) and (b), the director of finance shall pay the remaining balance on a quarterly basis to the director of finance of each county that has adopted a county transient accommodations tax under section 46-20.7. The quarterly payments shall be made after the county transient accommodations tax revenues have been paid into the state treasury special accounts or after the disposition of any tax appeal, as the case may be. All county transient accommodations tax revenues collected shall be distributed by the director of finance to the county in which the county transient accommodations tax is generated and shall be a general fund realization of the county." SECTION 2. Section 46-20.7, Hawaii Revised Statutes, is amended to read as follows: "[[]§46-20.7[]] County transient accommodations tax. (a) Each county may establish a transient accommodations tax [not to exceed the maximum rate set forth in section 237D-2.5]. The county transient accommodations tax shall be in addition to any state transient accommodations tax. A county electing to establish a transient accommodations tax pursuant to this section shall do so by ordinance. (b) The revenues received from a transient accommodations tax established pursuant to this section shall be used to address the pressures of the visitor industry on the demand for county services, including police and fire protection, parks and recreation facilities, emergency services, water systems, roads and transportation systems, sewage systems, and other infrastructure; provided that impacted county services and facilities may be further defined by ordinance. (c) A county electing to exercise the authority granted under this section shall notify the director of taxation within ten days after the county has adopted the county transient accommodations tax ordinance. Beginning no earlier than January 1, following the enactment of the ordinance, the director of taxation shall levy, assess, collect, and otherwise administer the county transient accommodations tax." SECTION 3. Section 237D-2.5, Hawaii Revised Statutes, is amended to read as follows: "[[]§237D-2.5[]] County transient accommodations tax; administration. (a) The county transient accommodations tax, upon the adoption of a county ordinance and in accordance with the requirements of section 46-20.7, shall be levied, assessed, and collected as provided in this section on all gross rental, gross rental proceeds, and fair market rental value taxable under this chapter. [No county shall set its transient accommodations tax at a rate greater than three per cent of all gross rental, gross rental proceeds, and fair market rental value taxable under this chapter. With respect] All provisions of this chapter shall apply to the county transient accommodations tax, with respect to which the [applicable county] director of [finance] taxation shall have all the rights and powers [of the director of taxation] provided under this chapter. In addition, the director of taxation shall have the exclusive rights and power to determine the county or counties in which a person is engaged in business and, in the case of a person engaged in business in more than one county, the director shall determine, through apportionment or other means, that portion of the county transient accommodations tax attributable to business conducted in each county. (b) The county transient accommodations tax, if adopted, shall be imposed on the gross rental, gross rental proceeds, and fair market rental value of all written contracts that require the passing on of the taxes imposed under this chapter; provided that if the gross rental, gross rental proceeds, and fair market rental value are received as payments beginning in the taxable year in which the taxes become effective, on contracts entered into prior to the adoption of the ordinance pursuant to section 46-20.7, and the written contracts do not provide for the passing on of increased rates of taxes, the county transient accommodations tax shall not be imposed on the gross rental, gross rental proceeds, and fair market rental value covered under the written contracts. The county transient accommodations tax shall be imposed on the gross rental, gross rental proceeds, and fair market rental value from all contracts entered into on or after the adoption of the ordinance pursuant to section 46-20.7, regardless of whether the contract allows for the passing on of any tax or any tax increases. (c) No county transient accommodations tax shall be established on any form of accommodation that is exempt from the taxes imposed by this chapter pursuant to section 237D-3. (d) The director of taxation shall revise the transient accommodations tax forms to provide for the clear and separate designation of the imposition and payment of the county transient accommodations tax. (e) All taxpayers who file on a fiscal year basis whose fiscal year ends after December 31 of the year prior to the taxable year in which the taxes become effective, shall file a short period annual return for the period preceding January 1 of the taxable year in which the taxes become effective. Each fiscal year taxpayer shall also file a short period annual return for the period starting on January 1 of the taxable year in which the taxes become effective, and ending before January 1 of the following year." 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, 2023. INTRODUCED BY: _____________________________ By Request |
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| 48 | 48 | | |
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| 49 | 49 | | SECTION 1. Chapter 248, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: |
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| 50 | 50 | | |
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| 51 | 51 | | "§248- County transient accommodations tax; disposition of proceeds. (a) If adopted by county ordinance, all county transient accommodations tax revenues collected by the director of taxation shall be paid into the state treasury quarterly, within ten working days after collection, and shall be placed by the director of finance into special accounts. Out of the revenues generated by county transient accommodations taxes paid into each respective state treasury special account, the director of finance shall deduct per cent of the gross proceeds of a respective county's transient accommodations tax to reimburse the State for the costs of assessment, collection, disposition, and oversight of the county transient accommodations tax incurred by the State. Amounts retained shall be general fund realizations of the State. |
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| 52 | 52 | | |
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| 53 | 53 | | (b) The amounts deducted for costs of assessment, collection, disposition, and oversight of county transient accommodations taxes shall be withheld from payment to the counties by the State out of the county transient accommodations tax revenues collected for the current calendar year. |
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| 54 | 54 | | |
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| 55 | 55 | | (c) For the purpose of this section, the costs of assessment, collection, disposition, and oversight of any county transient accommodations tax shall include any and all costs, direct or indirect, that are deemed necessary and proper to effectively administer this section and section 237D-2.5. |
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| 56 | 56 | | |
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| 57 | 57 | | (d) After the deduction and withholding of the costs under subsections (a) and (b), the director of finance shall pay the remaining balance on a quarterly basis to the director of finance of each county that has adopted a county transient accommodations tax under section 46-20.7. The quarterly payments shall be made after the county transient accommodations tax revenues have been paid into the state treasury special accounts or after the disposition of any tax appeal, as the case may be. All county transient accommodations tax revenues collected shall be distributed by the director of finance to the county in which the county transient accommodations tax is generated and shall be a general fund realization of the county." |
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| 59 | 59 | | SECTION 2. Section 46-20.7, Hawaii Revised Statutes, is amended to read as follows: |
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| 60 | 60 | | |
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| 61 | 61 | | "[[]§46-20.7[]] County transient accommodations tax. (a) Each county may establish a transient accommodations tax [not to exceed the maximum rate set forth in section 237D-2.5]. The county transient accommodations tax shall be in addition to any state transient accommodations tax. A county electing to establish a transient accommodations tax pursuant to this section shall do so by ordinance. |
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| 62 | 62 | | |
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| 63 | 63 | | (b) The revenues received from a transient accommodations tax established pursuant to this section shall be used to address the pressures of the visitor industry on the demand for county services, including police and fire protection, parks and recreation facilities, emergency services, water systems, roads and transportation systems, sewage systems, and other infrastructure; provided that impacted county services and facilities may be further defined by ordinance. |
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| 64 | 64 | | |
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| 65 | 65 | | (c) A county electing to exercise the authority granted under this section shall notify the director of taxation within ten days after the county has adopted the county transient accommodations tax ordinance. Beginning no earlier than January 1, following the enactment of the ordinance, the director of taxation shall levy, assess, collect, and otherwise administer the county transient accommodations tax." |
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| 66 | 66 | | |
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| 67 | 67 | | SECTION 3. Section 237D-2.5, Hawaii Revised Statutes, is amended to read as follows: |
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| 68 | 68 | | |
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| 69 | 69 | | "[[]§237D-2.5[]] County transient accommodations tax; administration. (a) The county transient accommodations tax, upon the adoption of a county ordinance and in accordance with the requirements of section 46-20.7, shall be levied, assessed, and collected as provided in this section on all gross rental, gross rental proceeds, and fair market rental value taxable under this chapter. [No county shall set its transient accommodations tax at a rate greater than three per cent of all gross rental, gross rental proceeds, and fair market rental value taxable under this chapter. With respect] All provisions of this chapter shall apply to the county transient accommodations tax, with respect to which the [applicable county] director of [finance] taxation shall have all the rights and powers [of the director of taxation] provided under this chapter. In addition, the director of taxation shall have the exclusive rights and power to determine the county or counties in which a person is engaged in business and, in the case of a person engaged in business in more than one county, the director shall determine, through apportionment or other means, that portion of the county transient accommodations tax attributable to business conducted in each county. |
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| 70 | 70 | | |
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| 71 | 71 | | (b) The county transient accommodations tax, if adopted, shall be imposed on the gross rental, gross rental proceeds, and fair market rental value of all written contracts that require the passing on of the taxes imposed under this chapter; provided that if the gross rental, gross rental proceeds, and fair market rental value are received as payments beginning in the taxable year in which the taxes become effective, on contracts entered into prior to the adoption of the ordinance pursuant to section 46-20.7, and the written contracts do not provide for the passing on of increased rates of taxes, the county transient accommodations tax shall not be imposed on the gross rental, gross rental proceeds, and fair market rental value covered under the written contracts. The county transient accommodations tax shall be imposed on the gross rental, gross rental proceeds, and fair market rental value from all contracts entered into on or after the adoption of the ordinance pursuant to section 46-20.7, regardless of whether the contract allows for the passing on of any tax or any tax increases. |
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| 72 | 72 | | |
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| 73 | 73 | | (c) No county transient accommodations tax shall be established on any form of accommodation that is exempt from the taxes imposed by this chapter pursuant to section 237D-3. |
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| 74 | 74 | | |
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| 75 | 75 | | (d) The director of taxation shall revise the transient accommodations tax forms to provide for the clear and separate designation of the imposition and payment of the county transient accommodations tax. |
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| 76 | 76 | | |
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| 77 | 77 | | (e) All taxpayers who file on a fiscal year basis whose fiscal year ends after December 31 of the year prior to the taxable year in which the taxes become effective, shall file a short period annual return for the period preceding January 1 of the taxable year in which the taxes become effective. Each fiscal year taxpayer shall also file a short period annual return for the period starting on January 1 of the taxable year in which the taxes become effective, and ending before January 1 of the following year." |
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| 79 | 79 | | SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. |
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| 80 | 80 | | |
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| 81 | 81 | | SECTION 5. This Act shall take effect on January 1, 2023. |
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| 85 | 85 | | INTRODUCED BY: _____________________________ |
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| 86 | 86 | | By Request |
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| 87 | 87 | | |
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| 88 | 88 | | INTRODUCED BY: |
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| 89 | 89 | | |
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| 90 | 90 | | _____________________________ |
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| 91 | 91 | | |
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| 93 | 93 | | |
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| 94 | 94 | | By Request |
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| 96 | 96 | | Report Title: Hawaii State Association of Counties Package; DOTAX; County Transient Accommodations Tax; Administration; Disposition of Proceeds Description: Requires county transient accommodations taxes to be levied, assessed, collected, and otherwise administered by the Department of Taxation. Repeals the rate limit on the county transient accommodations tax. Requires transient accommodations tax revenues to be used to address pressures of the visitor industry on the demand for county services. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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| 101 | 101 | | |
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| 102 | 102 | | Report Title: |
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| 103 | 103 | | |
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| 104 | 104 | | Hawaii State Association of Counties Package; DOTAX; County Transient Accommodations Tax; Administration; Disposition of Proceeds |
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| 105 | 105 | | |
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| 106 | 106 | | |
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| 107 | 107 | | |
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| 108 | 108 | | Description: |
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| 110 | 110 | | Requires county transient accommodations taxes to be levied, assessed, collected, and otherwise administered by the Department of Taxation. Repeals the rate limit on the county transient accommodations tax. Requires transient accommodations tax revenues to be used to address pressures of the visitor industry on the demand for county services. |
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| 111 | 111 | | |
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| 112 | 112 | | |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | |
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| 118 | 118 | | The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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