Report Title:

GET Exemption; Conventions, Meetings, and Incentive Programs

 

Description:

Exempts from the general excise tax amounts received for provision of facilities and services for conventions, meetings, and incentive travel programs.  Defines "facilities and services."

 

THE SENATE	S.B. NO.	8
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to the general excise tax.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that visitors who travel to Hawaii for conventions, meetings, and incentive programs have decreased recently.  For example, in 2006, visitor days for this specific sector decreased 5.7 per cent from 2005.

     The legislature also finds that conventions, meetings, and incentive travel market is a lucrative market with visitor spending reaching $913,000,000 in 2006, with average daily spending per person of $210 as compared to $178 for other types of visitors.  This market is highly competitive and many destinations offer incentives to attract these visitors.  For example, Mexico exempts international conventions, meetings, and incentive travel events from sales tax for sales paid for from a foreign bank.

     The legislature further finds that incentives in the conventions, meetings, and incentive travel market are necessary to allow Hawaii's visitor industry to remain competitive in the world market.  The purpose of this Act is to provide an excise tax exemption for the provision of facilities and services for convention, meeting, and incentive events that are paid for by national and international organizations.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-    Exemption for facilities and services provided for conventions, meetings, and incentive travel programs.  (a)  This chapter shall not apply to amounts received by providers of facilities and services for the provision of facilities and services for conventions, meetings, and incentive travel programs that are paid from an account in a foreign bank, a federal financial institution whose operations are not conducted in this State, or an out-of-state bank chartered under the laws of any state other than Hawaii.

     (b)  As used in this section the term "facilities and services" includes:

     (1)  Meeting rooms;

     (2)  Exhibit areas;

     (3)  Airport or seaport transfers;

     (4)  Transportation between hotels and meeting places;

     (5)  Event services such as set-up, registration, the provision of audiovisual equipment or decorations, and the provision of translation, security, and cleaning services; provided that services relating to the event provided up to two nights before the event and two nights after the event shall also be considered services; and

     (6)  Food and beverage services."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2009.

 

INTRODUCED BY:	_____________________________