Bill Text: HI SB2699 | 2018 | Regular Session | Amended
Bill Title: Relating To The Transient Accommodations Tax.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Vetoed) 2018-07-10 - Vetoed on 07-10-18 - Returned from the Governor without approval (Gov. Msg. No. 1257). [SB2699 Detail]
Download: Hawaii-2018-SB2699-Amended.html
SENATE FLOOR AMENDMENT
FLOOR AMENDMENT NO. Date
TO: S.B. 2699, S.D. 1
SECTION 1. Senate Bill No. 2699, S.D. 1, is amended as follows:
1. By amending SECTION 1, item 2, on page 1, line 9 to page 3, line 18, to read:
"2. By amending the definition of "gross rental" or "gross rental proceeds" to read:
""Gross rental" or "gross
rental proceeds" means the gross [receipts,] sales or gross
charges collected from consumers, including but not limited to booking fees, resort
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 fees unrelated to the transient accommodations,
cash or accrued, of the taxpayer received as compensation for the furnishing of
transient accommodations or entering into arrangements to furnish transient
accommodations and the value proceeding or accruing from the furnishing of [such]
the accommodations or entering into arrangements to furnish transient
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
or transient accommodation intermediaries and passed on, collected, and
received from the consumer as part of the receipts received as compensation for
the furnishing of transient accommodations[.] or entering into
arrangements to furnish transient accommodations. Where transient
accommodations are furnished through arrangements made by a [travel agency or
tour packager] transient accommodations intermediary at
noncommissionable negotiated contract rates and the gross income is divided
between the operator of transient accommodations on the one hand and the [travel
agency or tour packager] transient accommodations intermediary 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 adding a new SECTION 9 to the bill to read:
"SECTION 9. Section 237D-15, Hawaii Revised Statutes, is amended to read as follows:
"§237D-15 Application of tax. (a) The tax imposed by this chapter shall be in addition to any other taxes imposed by any other laws of the State, except as otherwise specifically provided in this chapter; provided that if it be held by any court of competent jurisdiction that the tax imposed by this chapter may not legally be imposed in addition to any other tax or taxes imposed by any other law or laws with respect to the same property or the use thereof, then this chapter shall be deemed not to apply to such property and the use thereof under the specific circumstances, but the other laws shall be given full effect with respect to such property and use.
(b) In order to determine if the tax under this chapter is to be levied, assessed, and collected upon transient accommodations the following presumptions shall control.
(1) If a person lets a transient accommodation for less than one hundred eighty consecutive days, it shall be presumed that the accommodation furnished is for a transient purpose.
(2) If a person lets a transient accommodation for one hundred eighty days or more, there is no presumption one way or another as to the purpose for which the accommodation is furnished.
The operator shall have the burden of proving to the department whether an accommodation is not being furnished for a transient purpose. If the department is satisfied that an accommodation is not furnished for a transient purpose, then the department shall not levy any tax under this chapter. The department shall adopt rules to implement this section.
(c) Except as otherwise provided, this chapter shall apply to a transient accommodations intermediary who furnishes or enters into an agreement to furnish transient accommodations at noncommissioned negotiated contract rates in the same manner as it applies to an operator.""
3. By renumbering SECTIONS 9 and 10 of the bill as SECTIONS 10 and 11.
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( ) Failed to Carry
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( ) Withdrawn
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