Hawaii 2022 Regular Session

Hawaii Senate Bill SB642

Introduced
1/22/21  

Caption

Relating To Taxation.

Impact

The bill's implementation is expected to significantly affect local taxation structures and revenue generation. As counties adopt this surcharge, they can potentially increase financial resources needed for infrastructure and services that support the tourism industry, which is vital for the Hawaiian economy. The proceeds from these surcharges will be collected by the state and subsequently allocated to the counties, providing a direct financial benefit while enhancing regulatory compliance for transient accommodation operators.

Summary

SB642 amends two chapters of the Hawaii Revised Statutes to allow counties to impose a county surcharge on transient accommodations tax. This new provision enables counties to customize tax regulations at a local level, reflecting their unique economic and social environments. However, the bill outlines specific procedural requirements: an ordinance must be adopted via public hearing before the surcharge can take effect, ensuring community involvement in the decision-making process. Counties are mandated to notify the director of taxation once they enact the surcharge, which can be executed starting January 1, 2024.

Contention

Despite its potential benefits, the bill may encounter contention regarding the balance of local autonomy versus state oversight. Concerns may arise from stakeholders who argue that centralized decision-making and the mandatory state administration of these taxes could stifle local governance. Additionally, if counties do not enact the surcharge by December 31, 2022, the bill mandates automatic repeal in January 2023, prompting discussions regarding urgency and political pressure over local legislative processes.

Companion Bills

HI HB364

Same As Relating To Taxation.

Previously Filed As

HI HB2778

Relating To Taxation.

HI SB176

Relating To Taxation.

HI HB2416

Relating To Taxation.

HI SB3105

Relating To Taxation.

HI HB1875

Relating To The County Transient Accommodations Tax.

HI SB2206

Relating To The County Transient Accommodations Tax.

HI HB2781

Relating To Taxation.

HI SB1568

Relating To Taxation.

HI SB2831

Relating To The County Transient Accommodations Tax.

HI HB2686

Relating To The Stabilization Of Property Insurance.

Similar Bills

HI HB364

Relating To Taxation.

HI HB321

Relating To Transient Accommodations Tax.

HI HB1314

Relating To Taxation.

HI HB2778

Relating To Taxation.

HI HB1839

Relating To Transient Accommodations Tax.

HI SB2358

Relating To Transient Accommodations Tax.

HI SB1659

Relating To The Lahaina Bypass.

HI SB492

Relating To Transportation Financing.