HomeMy WebLinkAboutCOM 0449.015 2020-2022 It of p
Matt Kaneali`i-Klein{elder Finance Committee
Hawaii County Council '�' Chair
District 5
Phone No.: (808)961-8263 +r"`....... °*�' Public Works&Mass Transit Committee
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matt.kanealii-kleinfelder@hawaiicounty.gov Vice Chair
Hawas
i`i County Council
County of Hawai`i
Hawai`i County Building
25 Aupuni Street,Suite 2405• Hilo, Hawai`i 96720
�CR
TO: Maile Medeiros David, Council Chair ;
and Members of the Hawaii County Council
FROM: Matt Kaneali`i-Kleinfelder, Council Member
DATE: November 17, 2021
SUBJECT: Proposed Amendment to Bill No. 81, Draft 2; an Ordinance Amending Chapter 2,
of the Hawaii County Code 1983 (2016 Edition, as Amended), by Adding a New
Article to Implement a County Transient Accommodations Tax.
Please see below a proposed amendment to Bill No. 81, Draft 2,that would decrease the impact
of the County transient accommodations tax on Hawaii County residents. This proposed
amendment is illustrated in Ramseyer format with respect to the contents of Bill No. 81, Draft 2;
material to be deleted is bracketed and stricken, and material to be added is underscored.
SECTION 2 of Bill No. 81, Draft 2, relating to "Tax established" and"Definitions" on pages 2
and 3, is amended to read as follows:
"Section 2- Tax established.
O Pursuant to Part III of Act 1, Special Session Laws of Hawaii 2021, a [thfee pefeent]
transient accommodations tax, not to exceed three ercent, is established on all gross
rental,gross rental proceeds, and fair market rental value considered taxable under the
definitions of section 237D-1, Hawaii Revised Statutes. [Thi-a] A two-tier transient
accommodations tax shall be levied [beginning TL022.] as follows:
A non-resident of Hawaii County shall pay three percent transient
accommodations tax when leasing, lettiniz, or renting a transient accommodation
that is subject to taxation under this article; and
A resident of Hawaii County shall pay 0.25 percent transient accommodations
tax when leasing, Ig etting, or renting a transient accommodation that is subject to
taxation under this article.
This tax shall be levied beginning on January 1 2022.
LcA If the gross rental, gross rental proceeds, and fair market rental value are received as
payments beginning in the taxable year in which this tax becomes effective, on
written contracts entered into prior to the establishment of this article, and the written
contracts do not provide for the passing on of increased rates of taxes,the County
transient accommodations tax will not be imposed on the gross rental, gross rental
proceeds, and fair market rental value covered under the written contracts.
Comm. N 441-10
Ref. To:
Hawai`i County is an Equal Opportunity Provider and Employer Rif, Date.
Section 2- Definitions.
(a) "Director"means the director of finance of the County.
(b) "Resident of Hawaii County"means a person who is domiciled in Hawaii County or
resides in Hawaii County for two hundred days or more of the taxable year for other
than a temporary or transitory purpose as provided in section 235-1, Hawaii Revised
Statutes.
[(b)]Lc)Unless otherwise provided in this article or by rule adopted by the director,the
definitions provided in section 237D-1, Hawaii Revised Statutes, as may be
amended, and by State administrative rule adopted for application to chapter 237D,
Hawaii Revised Statutes, shall apply to this article."
A draft copy of Bill No. 81, Draft 3, has been intentionally omitted due to the limited scope of
this amendment.
Thank you.
MKK/lk
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