HomeMy WebLinkAboutCOM 0449.016 2020-2022 i
Matt Ka"neali`i Klein elder �"`Y�OF
f •��� Finance Committee
Hawaii County Council " Chair
District 5 3
Phone No.: (808)961-8263 Public Works chi Mass Transit Committee
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matt.kanealii-kleinfelder@hawaiicounty_gov Vice Chair
Hawai`i Coun-- Council
County of Hawaii
Hawaii County Building =-!
25 Aupuni Street,Suite 2405 e Hilo, Hawai`i 96720
9rr. I
TO: Maile Medeiros David, Council Chair
and Members of the Hawaii County Council
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FROM: Matt Kdneali`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. This proposed amendment
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.
Pursuant to Part III of Act 1, Special Session Laws of Hawaii 2021, a three
percent transient accommodations tax 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[...]; provided that when leasing, letting,
or renting a transient accommodation that is subject to taxation under this article, a
resident of Hawaii County shall pay 0.25 percent of the three percent transient
accommodations tax and the taxpayer shall pay the remaining 2.75 percent.This
tax shall be levied beginning on January 1, 2022.
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 A
Ref. To: KWAM
Ref. Date NOV
Hawai`i County is an Equal Opportunity Provider and Employer
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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 pMose as provided in
section 235-1 Hawaii Revised Statutes
[(b)](c 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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