HOUSE OF REPRESENTATIVES	H.R. NO.	7
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

HOUSE RESOLUTION

 

 

URGING THE GOVERNOR AND THE LEGISLATURE OF THE STATE OF HAWAII TO PRESERVE THE COUNTIES' SHARE OF THE TRANSIENT ACCOMMODATIONS TAX.

 

 

     WHEREAS, the transient accommodations tax is a tax levied by the State on the proceeds derived from furnishing transient accommodations; and

 

     WHEREAS, during the Regular Session of 1990, the Legislature enacted Act 185 which gave the counties a share of the transient accommodations tax; and

 

     WHEREAS, according to Conference Committee Report 207, the purpose of Act 185 was to provide a more equitable method of sharing state revenues with the counties, rather than continuing with the system existing at the time, whereby the counties requested financial assistance through grants-in-aid from the State; and

 

     WHEREAS, the county share of the tax also provides more stability to county finances and enables improved budgeting and planning; and

 

     WHEREAS, currently, 44.8 per cent of the total transient accommodations tax collected by the State is distributed to the counties; of this amount, the revenue is allocated as follows:

 

Kauai County                 -    14.5%

Hawaii County                -    18.6%

City and County of Honolulu  -    44.1%

Maui County                  -    22.8%

                                 100.0%

 

and

 

     WHEREAS, the transient accommodations tax revenues account for a significant portion of the counties' general fund budgets; and

 

     WHEREAS, maintaining the current allocation of the transient accommodations tax would allow the counties to continue providing essential government services to visitors and residents; and

 

     WHEREAS, losing the current allocation of the transient accommodations tax would require counties to significantly raise property taxes; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, that the Governor and the Legislature are urged to preserve the counties' share of the transient accommodations tax; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the President of the Hawaii State Association of Counties, and the Mayors of the Counties of Kauai, Hawaii, Honolulu, and Maui.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Kauai County Package; Transient Accommodations Tax