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Paget . B ■ NO • <br /> JUSTIFICATION SHEET <br /> PROPOSER: Hawai`i State Association of Counties <br /> TITLE: RELATING TO THE TRANSIENT ACCOMMODATIONS TAX <br /> PURPOSE: This proposed Bill for an Act increases the allocation of funds to <br /> the counties from the transient accommodation tax. <br /> MEANS: Amends Section 237D-6.5, Hawai`i Revised Statutes by <br /> increasing the allocation to the counties to $186,000,000. <br /> JUSTIFICATION: The transient accommodations tax is a tax levied by the state on <br /> the proceeds derived from furnishing transient accommodations. <br /> Act 185 (1990) allocated to each County a percentage share of <br /> this tax to acknowledge that the fiscal burdens stemming from <br /> the tourist industry are borne by the Counties, including the <br /> costs of providing police and fire protection, maintaining County <br /> parks, beaches, water systems, roads, sewer systems and other <br /> tourism-related infrastructure. Since the enactment of Act 185 <br /> (1990), the TAT accounts for a significant portion of each <br /> County's general fund budgets. Act 103 (2011) capped the <br /> amount of TAT funds transferred to the counties at $93,000,000 <br /> on a temporary basis. Act 161 (2013) made the cap permanent. <br /> The amount of revenues to the counties does not offset the <br /> impact of the increase in visitors to Hawai`i in recent years. <br />