Bill Text: HI SB2615 | 2018 | Regular Session | Introduced
Bill Title: Relating To Transient Accommodations Tax.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2018-03-01 - The committee on WAM deferred the measure. [SB2615 Detail]
Download: Hawaii-2018-SB2615-Introduced.html
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THE SENATE |
S.B. NO. |
2615 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to transient accommodations tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 237D-1, Hawaii Revised Statutes, is amended as follows:
1. By amending the definition of "gross rental" or "gross rental proceeds" to read:
""Gross rental" or "gross
rental proceeds" means the gross [receipts,] sale or
gross charges collected from consumers, including but not limited to booking
fees, cleaning fees, lodging fees, transient fees, or any other fees collected,
but does not include fees collected for ground transportation, airfare, meals,
excursions, tours, or other items included in a travel package, other than
accommodations, cash or
accrued, of the taxpayer received as compensation for the furnishing of
transient accommodations and the value proceeding or accruing from the
furnishing of such accommodations without any deductions on account of the cost
of property or services sold, the cost of materials used, labor cost, [taxes,]
royalties, interest, discounts, or any other expenses whatsoever. Every taxpayer shall be presumed to be
dealing on a cash basis unless the taxpayer proves to the satisfaction of the
department of taxation that the taxpayer is dealing on an accrual basis and the
taxpayer's books are so kept, or unless the taxpayer employs or is required to
employ the accrual basis for the purposes of the tax imposed by chapter 237 for
any taxable year in which event the taxpayer shall report the taxpayer's gross
income for the purposes of this chapter on the accrual basis for the same
period.
The words "gross rental" or "gross
rental proceeds" shall not be construed to include the amounts of taxes
imposed by chapter 237 or this chapter on operators of transient accommodations
and passed on, collected, and received from the consumer as part of the
receipts received as compensation for the furnishing of transient
accommodations. Where transient
accommodations are furnished through arrangements made by a transient
accommodations intermediary or travel
agency [or tour packager] at noncommissionable negotiated contract rates
and the gross income is divided between the operator of transient
accommodations on the one hand and the transient accommodations
intermediary or travel
agency [or tour packager] on the other hand, [gross rental or gross
rental proceeds to the operator means only the respective portion allocated or
distributed to the operator,] the tax imposed by this chapter
shall apply to each operator and transient accommodations intermediary with
respect to that person's respective portion of the proceeds, and no more. For purposes of this definition, where the
operator maintains a schedule of rates for identifiable groups of individuals,
such as kamaainas, upon which the accommodations are leased, let, or rented,
gross rental or gross rental proceeds means the receipts collected and received
based upon the scheduled rates and recorded as receipts in its books and
records."
2. By amending the definition of "transient accommodations broker" to read:
""Transient accommodations
[broker"] intermediary" means any person or entity,
including but not limited to persons who operate or market transient
accommodations through wholesale travel companies, online websites, online
travel agencies, [or] online booking agencies, or booking
platforms, that offers, lists, advertises, or accepts reservations or
collects whole or partial payment for transient accommodations or resort time
share vacation interests, units, or plans."
SECTION 2. Section 237D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Every operator or transient accommodations intermediary who collects whole or partial payment for transient accommodations shall pay to the State the tax imposed by subsection (a), as provided in this chapter."
SECTION 3. Section 237D-4, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Each operator, transient accommodations intermediary, 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 physical 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. 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) shall be unlawful. The department may issue citations to any
person, including operators, plan managers, and transient accommodations [brokers,]
intermediaries, 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 4. Section 237D-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) On or before the twentieth day of each
calendar month, every [operator taxable, or plan manager] taxpayer
liable under this chapter during the preceding calendar month shall file a
sworn return with the director in such form as the director shall prescribe together
with a remittance for the amount of the tax in the form required by section
237D-6.5. Sections 237-30 and 237-32
shall apply to returns and penalties made under this chapter to the same extent
as if the sections were set forth specifically in this section."
SECTION 5. Section 237D-7, Hawaii Revised Statutes, is amended to read as follows:
"§237D-7 Annual return. On or before the twentieth day of the fourth
month following the close of the taxable year, every person who has become
liable for the payment of the taxes under this chapter during the preceding tax
year shall file a return summarizing that person's liability under this chapter
for the year, in such form as the director prescribes. The [operator or plan manager] taxpayer
shall transmit with the return a remittance covering the residue of the tax
chargeable to the [operator or plan manager,] taxpayer, if any,
to the office of the appropriate state district tax assessor designated in
section 237D-8. The return shall be
signed by the taxpayer, if made by an individual, or by the president,
vice-president, secretary, or treasurer of a corporation, if made on behalf of
a corporation. If made on behalf of a
partnership, firm, society, unincorporated association, group, hui, joint
adventure, joint stock company, corporation, trust estate, decedent's estate,
trust, or other entity, any individual delegated by the entity shall sign the
same on behalf of the taxpayer. If for
any reason it is not practicable for the individual taxpayer to sign the
return, it may be done by any duly authorized agent. The department, for good cause shown, may
extend the time for making the return on the application of any taxpayer and
grant such reasonable additional time within which to make the return as the
department may deem advisable.
Section 232-2 applies to the annual return, but not to a monthly return."
SECTION 6. Section 237D-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) If any [operator or plan manager] taxpayer
fails to make a return as required by this chapter, the director shall make an
estimate of the tax liability of the [operator or plan manager] taxpayer
from any information the director obtains, and according to the estimate so
made, assess the taxes, interest, and penalty due the State from the [operator
or plan manager,] taxpayer, give notice of the assessment to the [operator
or plan manager,] taxpayer, and make demand upon the [operator or
plan manager] taxpayer for payment.
The assessment shall be presumed to be correct until and unless, upon an
appeal duly taken as provided in section 237D-11, the contrary shall be clearly
proved by the person assessed, and the burden of proof upon such appeal shall
be upon the person assessed to disprove the correctness of assessment."
SECTION 7. Section 237D-10, Hawaii Revised Statutes, is amended to read as follows:
"§237D-10 Overpayment; refunds. Upon application by [an operator or plan
manager,] a taxpayer, if the director determines that any tax, interest,
or penalty has been paid more than once, or has been erroneously or illegally
collected or computed, the tax, interest, or penalty shall be credited by the
director on any taxes then due from the [operator or plan manager] taxpayer
under this chapter. The director shall
refund the balance to the [operator or plan manager] taxpayer or
the [operator's or plan manager's] taxpayer's successors,
administrators, executors, or assigns in accordance with section 231-23. No credit or refund shall be allowed for any
tax imposed by this chapter, unless a claim for such credit or refund is filed
as follows:
(1) If an annual return is timely filed, or is filed within three years after the date prescribed for filing the annual return, then the credit or refund shall be claimed within three years after the date the annual return was filed or the date prescribed for filing the annual return, whichever is later.
(2) If an annual return is not filed, or is filed more than three years after the date prescribed for filing the annual return, a claim for credit or refund shall be filed within:
(A) Three years after the payment of the tax; or
(B) Three years after the date prescribed for the filing of the annual return,
whichever is later.
Paragraphs (1) and (2) are mutually exclusive. The preceding limitation shall not apply to a credit or refund pursuant to an appeal, provided for in section 237D-11.
As to all tax payments for which a refund or credit is not authorized by this section (including, without prejudice to the generality of the foregoing, cases of unconstitutionality), the remedies provided by appeal or by section 40-35 are exclusive."
SECTION 8. Section 237D-12, Hawaii Revised Statutes, is amended to read as follows:
"§237D-12 Records to be kept; examination. Every [operator and plan manager] taxpayer
shall keep in the English language within the State, and preserve for a period
of three years, suitable records of gross rental, gross rental proceeds, or
fair market rental value relating to the business taxed under this chapter, and
such other books, records of account, and invoices as may be required by the
department, and all such books, records, and invoices shall be open for
examination at any time by the department or the Multistate Tax Commission
pursuant to chapter 255, or the authorized representative thereof."
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall apply to taxable years beginning after December 31, 2017.
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INTRODUCED BY: |
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Report Title:
Transient Accommodations Tax; Gross Rental Price; Transient Accommodations Intermediaries
Description:
Clarifies that the transient accommodations tax shall be calculated based on the gross rental price paid by a visitor. Specifies that the transient accommodations tax is to be collected from operators or transient accommodations intermediaries that collect whole or partial payment for transient accommodations.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
