THE SENATE |
S.B. NO. |
2354 |
TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to transient ACCOMMODATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there is an affordable housing crisis in the State that is exacerbated by the increasing number of visitors to the State who are using single family homes and residential condominiums as short-term vacation rentals. According to a recent study by the Hawaii tourism authority, approximately 22,238 residential units across the State are being offered on websites as available for short-term vacation rentals for under thirty days. Based on the Hawaii tourism authority's estimate of vacation rentals in Hawaii, many of the vacation rentals available on the island of Oahu are operating without a legal permit. Unauthorized short-term vacation rentals significantly impact the communities in which they are located, including by decreasing the availability of long-term rental housing for local residents.
The purpose of this Act is to increase the supply of long-term residential rental units for local residents by ensuring that only authorized transient vacation rentals receive and post a transient accommodations tax certificate of registration.
SECTION 2. Section 237D-4, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Each operator or plan manager as a condition precedent to engaging or continuing in the business of furnishing transient accommodations or in business as a resort time share vacation plan shall register with the director the name and address of each place of business within the State subject to this chapter. The operator or plan manager shall make a one-time payment as follows:
(1) $5 for each registration for transient accommodations consisting of one to five units;
(2) $15 for each registration for transient accommodations consisting of six or more units; and
(3) $15 for each resort time share vacation plan within the State;
upon receipt of which the director shall issue a
certificate of registration in such form as the director determines, attesting
that the registration has been made[.]; provided that the director
shall issue a certificate of registration with the letters "TVU",
which signifies transient vacation unit, to an operator or plan manager
furnishing transient accommodations for less than thirty days; provided further
that amended certificates of registration with the letters "TVU" and
existing registration identification numbers may be issued for existing
certificates of registration, as applicable. The registration shall not be
transferable and shall be valid only for the operator or plan manager in whose
name it is issued and for the transaction of business at the place designated
therein. Acquisition of additional transient accommodation units after payment
of the one-time fee shall not result in additional fees."
2. By amending subsection (d) to read:
"(d) Failure to meet the requirements of subsection (c) or providing a false registration identification number shall be unlawful. The department may issue citations to any person, including operators, plan managers, and transient accommodations brokers, who violates subsection (c). A citation issued pursuant to this subsection for each transient accommodation or resort time share vacation interest, plan, or unit in violation of subsection (c) shall include a monetary fine of not less than:
(1) $500 per day, for a first violation for which a citation is issued;
(2) $1,000 per day, for a second violation for which a citation is issued; and
(3) $5,000 per day, for a third and any subsequent violation for which a citation is issued."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
INTRODUCED BY: |
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Report Title:
Transient Accommodations Tax Certificate of Registration; Transient Vacation Unit; Penalties
Description:
Requires the director of taxation to issue a certificate of registration with the letters "TVU", which signifies transient vacation unit, to an operator or plan manager furnishing transient accommodations to a transient for less than thirty days; provided that amended certificates of registration with the letters "TVU" and existing registration identification numbers may be issued for existing certificates of registration, as applicable. Establishes penalties for providing a false registration identification number.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.