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Home My WebLink AboutRES 152 Draft 01 2012-2014 �tY Oi.. COUNTY OF HAWAII :• � '= .�� • STATE OF HAWAII • RESOLUTION NO. 152 13 A RESOLUTION REQUESTING THAT THE HAWAII STATE ASSOCIATION OF COUNTIES INCLUDE IN ITS 2014 LEGISLATIVE PACKAGE A BILL FOR THE LEGISLATURE OF THE STATE OF HAWAII TO INCREASE THE AMOUNT OF THE COUNTIES' SHARE OF THE TRANSIENT ACCOMMODATION TAX. WHEREAS, the transient accommodations tax is a tax levied by the State of Hawai`i on the proceeds derived from furnishing transient accommodations; and WHEREAS, Act 185, Session Laws of Hawai`i 1990, gave the counties a share of the transient accommodations tax; and WHEREAS, according to Conference Committee Report No. 207 (1990), the purpose of Act 185 was to provide a more equitable method of sharing state revenues with the counties, rather than continuing with the system that existed at the time whereby the counties requested financial assistance through grants-in-aid from the State; and WHEREAS, prior to July 1, 2013, 44.8% of the total transient accommodations tax collected by the State was distributed to the counties and allocated as follows: Kaua`i County 14.5% Hawai`i County 18.6% City and County of Honolulu 44.1% Maui County 22.8% 100.0%; and WHEREAS, on June 21, 2013, Governor Neil Abercrombie signed into law Act 161, which established $93,000,000 as the amount to be allocated to the counties; and WHEREAS, based on the percentages provided above, Act 161 allocates $13,485,000 to Kauai County, $17,298,000 to Hawai`i County, $41,013,000 to the City and County of Honolulu, and $21,204,000 to Maui County; and WHEREAS,the counties' share of the tax is a stabilizing force for county finances, providing for improved budgeting and planning; and WHEREAS,the transient accommodations tax provides needed revenues for the operations of county government to enhance visitor satisfaction; and WHEREAS,the state's economy is improving, resulting in an increase in transient accommodation tax revenues; and WHEREAS, an increase in visitor arrivals results in an increased draw on county resources; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it approves for inclusion in the 2014 Hawai`i State Association of Counties' legislative package requesting the Legislature of the State of Hawai`i to increase the amount on the counties' share of the transient accommodations tax to $186,000,000 as stated in the attached "Exhibit A." BE IT FINALLY RESOLVED that the Clerk of the County of Hawai`i is directed to transmit copies of this Resolution to the Honorable Mayor William P. Kenoi, and to the President and the Secretary of the Hawai`i State Association of Counties. Dated at Kona , Hawai`i, this 21st day of August , 2013. INT''• PUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i EOFF X FORD X I hereby certify that the foregoing RESOLUTION was by ILAGAN X the vote indicated to the right hereof adopted by the COUNCIL of the KANUHA County of Hawaii on August 21, 2013 X KERN X ONISHI X ATTEST: POINDEXTER X WILLE X YOSHIMOTO X 9 0 0 0 Reference: C-363/Waived GREDC COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 152 13 2 Exhibit A Paget . B ■ NO • JUSTIFICATION SHEET PROPOSER: Hawai`i State Association of Counties TITLE: RELATING TO THE TRANSIENT ACCOMMODATIONS TAX PURPOSE: This proposed Bill for an Act increases the allocation of funds to the counties from the transient accommodation tax. MEANS: Amends Section 237D-6.5, Hawai`i Revised Statutes by increasing the allocation to the counties to $186,000,000. JUSTIFICATION: The transient accommodations tax is a tax levied by the state on the proceeds derived from furnishing transient accommodations. Act 185 (1990) allocated to each County a percentage share of this tax to acknowledge that the fiscal burdens stemming from the tourist industry are borne by the Counties, including the costs of providing police and fire protection, maintaining County parks, beaches, water systems, roads, sewer systems and other tourism-related infrastructure. Since the enactment of Act 185 (1990), the TAT accounts for a significant portion of each County's general fund budgets. Act 103 (2011) capped the amount of TAT funds transferred to the counties at $93,000,000 on a temporary basis. Act 161 (2013) made the cap permanent. The amount of revenues to the counties does not offset the impact of the increase in visitors to Hawai`i in recent years. . B . NO . 1 A BILL FOR AN ACT 2 3 4 RELATING TO TRANSIENT ACCOMMODATIONS TAX. 5 6 7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 8 9 SECTION 1 . Section 237D-6 . 5, Hawaii Revised Statutes, is 10 amended by amending subsection (b) to read as follows : 11 " (b) Revenues collected under this chapter shall be 12 distributed as follows, with the excess revenues to be deposited 13 into the general fund: 14 (1) $33,000,000 shall be allocated to the convention center enterprise special fund established 15 under section 201B-8; 16 (2) $82,000,000 shall be allocated to the tourism special fund established under section 17 201B-11; provided that: 18 (A) Beginning on July 1, 2012 , and ending on June 30, 19 2015, $2 , 000 , 000 shall be expended from the 20 tourism special fund for development and 21 implementation of initiatives to take advantage of 22 expanded visa programs and increased travel 23 opportunities for international visitors to 24 Hawaii ; 25 (B) Of the $82 , 000, 000 allocated: 26 (i) $1, 000 , 000 shall be allocated for the 27 operation of a Hawaiian center and the Page 4 ■ B . F\ic . _____ 1 museum of Hawaiian music and dance at the 2 Hawaii convention center; and 3 (ii) 0 . 5 per cent of the $82 , 000, 000 shall be 4 transferred to a sub-account in the tourism 5 special fund to provide funding for a safety 6 and security budget, in accordance with the 7 Hawaii tourism strategic plan 2005-2015; and 8 (B) Of the revenues remaining in the tourism special 9 fund after revenues have been deposited as 10 provided in this paragraph and except for any sum 11 authorized by the legislature for expenditure from 12 revenues subject to this paragraph, beginning July 13 1, 2007, funds shall be deposited into the tourism 14 emergency trust fund, established in section 201B- 15 10, in a manner sufficient to maintain a fund 16 balance of $5, 000, 000 in the tourism emergency 17 trust fund; 18 19 (3) [$93,000,000] $186,000,000 shall be allocated as follows: Kauai county shall receive 20 14.5 per cent, Hawaii county shall receive 18.6 per cent, city and county of Honolulu shall 21 receive 44.1 per cent, and Maui county shall receive 22.8 per cent; and 22 (4) Of the excess revenues deposited into the general fund pursuant to this subsection, 23 $3,000,000 shall be allocated subject to the mutual agreement of the board of land and natural 24 resources and the board of directors of the Hawaii tourism authority in accordance with the 25 Hawaii tourism authority strategic plan for: Pages B • NO . _____ 1 (A) The protection, preservation, and enhancement of 2 natural resources important to the visitor 3 industry; 4 (B) Planning, construction, and repair of facilities; 5 and 6 (C) Operation and maintenance costs of public 7 lands connected with enhancing the visitor 8 experience . 9 All transient accommodations taxes shall be paid into the 10 state treasury each month within ten days after collection and 11 shall be kept by the state director of finance in special 12 accounts for distribution as provided in this subsection. 13 As used in this subsection, "fiscal year" means the twelve- 14 month period beginning on July 1 of a calendar year and ending 15 on June 30 of the following calendar year. " 16 SECTION 2 . Statutory material to be repealed is bracketed 17 and stricken. New statutory material is underscored. 18 SECTION 3 . This Act shall take effect on July 1, 2014 . 19 20 INTRODUCED BY: