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EXHIBIT A <br /> ORDINANCE NO. 1099 BILL NO. 2829, Draft 1 <br /> A BILL FOR AN ORDINANCEESTABLISHING CHAPTER 5,ARTICLE 4, <br /> KAUA'I COUNTY CODE 1987, AS AMENDED, <br /> IMPLEMENTINGA COUNTY TRANSIENT ACCOMMODATIONS TAX <br /> E IT ORDAINED BY THE COUNCIL OF THE COUNTY OF UA`I, STATE <br /> OF WAIJ: <br /> SECTION 1. Purpose. Pursuant to Act 1, Special Session Laws of <br /> Hawaii 2021, Counties were stripped of the statutory allocation of State-collected <br /> Transient Accommodations Tax revenues set forth under Section 237D-6.5(b), <br /> Hawaii Revised Statutes. This annual allocation most recently provided close <br /> to $15,000,000.00 in County general fund revenues to support the impacts of tourism <br /> activities, and mitigative cost of County services on island. Without this revenue, the <br /> County faces the prospect of future financial shortfalls. <br /> However, Act 1 did provide authority for the Counties, via their respective <br /> Directors of Finance, to collect a County transient accommodations tax in addition to <br /> the State transient accommodations tax. <br /> While maintaining a Charter-mandated balanced budget picture could be <br /> achieved via an increase in real property taxes, it is clear that the policy of burdening <br /> residents and commercial enterprises with funding the impacts of tourism activities <br /> on island is inequitable. Average daily census rates of visitors on island account for <br /> close to 30% of the County-serviceable population, and our tax policy should reflect <br /> recouping this impact proportionally to the burden on County government. <br /> This Ordinance implements the authority under Act 1, Special Session Laws <br /> of Hawaii 2021, and establishes a transient accommodations tax program for the <br /> County of Kauai. <br /> - SECTION 2. Chapter 5, Kauai County Code 1987, as amended, is <br /> hereby amended by establishing a new Article 4, as follows: <br /> "ARTICLE 4. COUNTY TRANSIENT ACCOMMODATIONS TAX <br /> See. 5-4.1 Tax Established. Pursuant to Part III, Act 1, Session Laws of <br /> Hawaii 2021, a three-percent (3.0%) transient accommodations tax is established on <br /> all gross rental, gross rental proceeds, and fair market rental value considered <br /> taxable under the definitions of Section 237D-1, Hawaii Revised Statutes. This tax <br /> shall be considered levied upon the enactment of this Ordinance. <br /> See. 5-4.2 Definitions. The definitions in Section 237D-1, Hawaii Revised <br /> Statutes, are incorporated by reference for the purposes of this Article. <br /> 1 <br />