HomeMy WebLinkAboutCOM 0789.000 2016-2018 ' 1
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VALERIE T. POINDEXTER = °'��R` '' Phone: (808) 961-8828
Council Chairwoman&Presiding Officer + � ��;►;`��;�• Fax: (808)961-8912
Council District 1 - =►e+ Email: vpoindexter@co.hawaii.hi.us
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HAWAII COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building
25 Aupuni Street, Suite 1402 `
Hilo, Hawai`i 96720 z —1
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DATE: March 8, 2018 -
TO: Members of the Hawai`i County Council
FROM: .- Valerie T. Poindexter, Council Chairwoman
SUBJECT: A RESOLUTION URGING THE HAWAII STATE LEGISLATURE NOT TO
PASS HOUSE BILL NO. 1665, H.D. 1 RELATING TO TRANSIENT
ACCOMODATION TAX.
Attached is a resolution is to oppose House Bill No. 1665, H.D. 1 that will be presented at the
2018 Hawai`i State Legislature, currently in session. Also attached for your convenience and
reference is House Bill No. 1665, H.D. 1.
Due to the time-sensitive 2018 Legislative calendar, this item will be waived through Committee
and placed on the agenda for the March 14, 2018, Council meeting.
Thank you.
VP/sc
Att.
<Res. S2S- 18
Comm. No. Ig 1
Ref. To: ?lit•C w/FL
Ref. Dote MAR 0 1 2 01 8
Hawai`i County is an Equal Opportunity Provider and Employer
MAILE MEDEIROS DAVID "SY•�`".w'•. AARON S.Y. CHUNG
Chairperson �w 414: DRU MAMO KANUHA
. �- , :. SUSAN L.K.LEE LOY
KAREN EOFF -• "`"'"- • EILEEN O'HARA
Vice Chair
° �',`: VALERIE T.POINDEXTER
+r :�=�° `
. ..°�. � HERBERT M."TIM"RICHARDS,III
JENNIFER RUGGLES
HAWAII COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building
25 Aupuni Street
Hilo, Hawai`i 96720
March 8, 2018
Valerie T. Poindexter, Chairperson
Hawai`i County Council
25 Aupuni Street
Hilo, Hawai`i 96720
RE: Resolution No. 525-18 : A RESOLUTION URGING THE HAWAII STATE
LEGISLATURE NOT TO PASS HOUSE BILL NO. 1665, H.D. 1, RELATING TO THE
TRANSIENT ACCOMMODATION TAX.
Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of
Hawai`i, this written request is submitted with my approval that the above-referenced matter be
waived from the Committee on Finance to the full Council for immediate action. In reviewing
this matter, timely approval is crucial. It is therefore advantageous that approval is granted and
the matter be placed onto the next Council agenda for review. However, in the event this request
is denied, for whatever reason, I understand the matter shall be referred to the Committee on
Finance for placement on its future agenda.
Sincerely,
Av
Maile David, Chairperson
Committee on Finance
Approved/D0e/Waive to Council: Disapproved/Date/Refer to FC:
....w�.__.._�._._ MAR 08 Z 8
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Valerie T. Poindexter, Chairperson Valerie T. Poindexter, Chairperson
Hawai`i County Council Hawai`i County Council
Hawai`i County is an Equal Opportunity Provider and Employer
HOUSE OF REPRESENTATIVES 1665
TWENTY-NINTH LEGISLATURE, 2018 H . B . N O. H.D. 1
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The laws of Hawaii divide the duties and
2 responsibilities of providing public services between the State
3 and the counties . The legislature finds that a primary
4 residential property owner tax credit will encourage home owners
5 to maintain the property as their primary residence, rather than
6 convert it to transient accommodations and thereby exacerbate an
7 already problematic situation. The purpose of this Act is to
8 allocate transient accommodations tax revenues to the counties
9 on a reimbursement basis for public services provided and
10 primary residential property owner tax credits allowed by the
11 counties.
12 SECTION 2 . Chapter 235, Hawaii Revised Statutes, is
13 amended by adding a new section to be appropriately designated
14 and to read as follows:
15 "§235- Primar residential •ro•ert owner tax credit.
16 (a) There shall be allowed to each qualified taxpayer subject
17 to the tax imposed under this chapter, a primary residential
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1 property owner tax credit that shall be deductible from the
2 taxpayer' s net income tax liability, if any, imposed by this
3 chapter for the taxable year in which the credit is properly
4 claimed.
5 (b) In the case of a partnership, S corporation, estate,
6 or trust, the tax credit allowable is for qualified expenses
7 incurred by the entity for the taxable year. The expenses upon
8 which the tax credit is computed shall be determined at the
9 entity level. Distribution and share of credit shall be
10 determined by rule.
11 (c) The primary residential property owner tax credit
12 shall be equal to $ multiplied by the number of the
13 taxpayer' s qualified exemptions.
14 (d) The director of taxation:
15 (1) Shall prepare any forms that may be necessary to claim
16 a tax credit under this section;
17 (2) May require the taxpayer to furnish reasonable
18 information to ascertain the validity of the claim for
19 the tax credit made under this section; and
20 (3) May adopt rules under chapter 91 necessary to
21 effectuate the purposes of this section.
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1 (e) If the tax credit claimed by a qualified taxpayer
2 exceeds the amount of income tax payment due from the qualified
3 taxpayer, the excess of the credit over payments due shall be
4 refunded to the qualified taxpayer; provided that tax credit
5 properly claimed by a qualified individual who has no income tax
6 liability shall be paid to the qualified individual; and
7 provided further that no refunds or payment on account of the
8 tax credit allowed by this section shall be made for amounts
9 less than $1.
10 All claims for the tax credit under this section, including
11 amended `'claims, shall be filed on or before the end of the
12 twelfth month following the close of the taxable year for which
13 the credit may be claimed. Failure to comply with the foregoing
14 provision shall constitute a waiver of the right to claim the
15 credit.
16 (f) As used in this section, "qualified taxpayer" means a
17 resident individual taxpayer who:
18 (1) Claims the tax credit on the taxpayer' s primary
19 residence in the State and does not permit transient
20 accommodations as defined in section 237D-1;
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H . B . NO. H.D. ,
1 (2) Pays real property taxes to a county of the State for
2 the taxpayer' s primary residence during the taxable
3 year;
4 (3) Is not claimed or is not otherwise eligible to be
5 claimed as a dependent by another taxpayer for federal
6 or Hawaii state individual income tax purposes; and
7 (4) Has been a resident of the State, as defined in
8 section 235-1, for at least nine months regardless of
9 whether the qualified resident was physically in the
10 State for nine months.
11 Upon request, each county shall provide the department of
12 taxation with any information necessary to determine if a
13 taxpayer fulfills the foregoing requirements. "
14 SECTION 3 . Section 237D-6 .5, Hawaii Revised Statutes, is
15 amended by amending subsection (b) to read as follows:
16 " (b) Except for the revenues collected pursuant to section
17 237D-2 (e) , revenues collected under this chapter shall be
18 distributed in the following priority, with the excess revenues
19 to be deposited into the general fund:
20 (1) $1, 500, 000 shall be allocated to the Turtle Bay
21 conservation easement special fund beginning July 1,
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H.D. 1
1 2015, for the reimbursement to the state general fund
2 of debt service on reimbursable general obligation
3 bonds, including ongoing expenses related to the
4 issuance of the bonds, the proceeds of which were used
5 to acquire the conservation easement and other real
6 property interests in Turtle Bay, Oahu, for the
7 protection, preservation, and enhancement of natural
8 resources important to the State, until the bonds are
9 fully amortized;
10 (2) $26, 500, 000 shall be allocated to the convention
11 center enterprise special fund established under
12 section 201B-8;
13 (3) $82, 000, 000 shall be allocated to the tourism special
14 fund established under section 201B-11; provided that:
15 (A) Beginning on July 1, 2012 , and ending on June 30,
16 2015, $2, 000, 000 shall be expended from the
17 tourism special fund for development and
18 implementation of initiatives to take advantage
19 of expanded visa programs and increased travel
20 opportunities for international visitors to
21 Hawaii;
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1 (B) Of the $82, 000, 000 allocated:
2 (i) $1, 000, 000 shall be allocated for the
3 operation of a Hawaiian center and the
4 museum of Hawaiian music and dance at the
5 Hawaii convention center; and
6 (ii) 0 .5 per cent of the $82, 000, 000 shall be
7 transferred to a sub-account in the tourism
8 special fund to provide funding for a safety
9 and security budget, in accordance with the
10 Hawaii tourism strategic plan 2005-2015; and
11 (C) Of the revenues remaining in the tourism special
12 fund after revenues have been deposited as
13 provided in this paragraph and except for any sum
14 authorized by the legislature for expenditure
15 from revenues subject to this paragraph,
16 beginning July 1, 2007, funds shall be deposited
17 into the tourism emergency special fund,
18 established in section 201B-10, in a manner
19 sufficient to maintain a fund balance of
20 $5, 000, 000 in the tourism emergency special fund;
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1 (4) [$103, 000, 000 shall be allocated as follows : Kauai
2 county shall rcccivc 14. 5 per ccnt, Hawaii county
3 shall rcccivc 18 .6 per cent, city and county of
4 Honolulu shall rcccivc 44 . 1 per ccnt, and IIaui county
5 shall rcccivc 22 . 8 per cent;] The amount necessary as
6 certified by the director of finance to reimburse the
7 counties for the costs expended by the counties for
8 the provision of public services and qualifying tax
9 credits allowed as specified in this paragraph;
10 provided that the amounts reimbursed to each county
11 shall not exceed the following amounts : $ for
12 Kauai county, $ for Hawaii county, $
13 for city and county of Honolulu, and $ for
14 Maui county. To receive the reimbursement, the county
15 shall apply for the reimbursement within ninety days
16 after the expenditure of county funds or allowing the
17 primary residential property owner tax credit under
18 section 235- ; provided that failure to comply with
19 this provision shall constitute a waiver of the right
20 to claim a reimbursement. The director of finance
21 shall prepare forms as may be necessary to claim the
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H . B. N O . H.D. 1
1 reimbursement. The director of finance may require
2 the county to furnish information to ascertain the
3 validity of the claim for reimbursement under this
4 paragraph and may adopt rules necessary to effectuate
5 the purpose of this paragraph pursuant to chapter 91;
6 provided that commencing with fiscal year 2018-2019, a
7 sum that represents the difference between a county
8 public employer' s annual required contribution for the
9 separate trust fund established under section 87A-42
10 and the amount of the county public employer' s
11 contributions into that trust fund shall be retained
12 by the state director of finance and deposited to the
13 credit of the county public employer' s annual required .
14 contribution into that trust fund in each fiscal year,
15 as provided in section 87A-42, if the respective
16 county fails to remit the total amount of the county' s
17 required annual contributions, as required under
18 section 87A-43 [; and] . Each county may claim
19 reimbursements for the following expenditures of
20 county funds or tax credit for:
21 (A) Enforcing county ordinances relating to transient
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H . B .
1 accommodations;
2 (B) Establishing, operating, and maintaining public
3 mass transportation;
4 (C) Providing grants for cesspool conversion county
5 programs affecting natural resources;
6 (D) Establishing, implementing, and updating, in
7 coordination with the Hawaii tourism authority,
8 county visitor industry strategic plans and
9 priorities;
10 (E) Providing ocean safety programs, including
11 infrastructure and equipment, such as lifeguard
12 towers, swim buoys, and video cameras, staffing
13 and operating costs, and education and visitor
14 awareness; and
15 (F) Allowing the primary residential property owner
16 tax credit under section 235- ; and
17 (5) $3, 000, 000 shall be allocated to the special land and
18 development fund established under section 171-19;
19 provided that the allocation shall be expended in
20 accordance with the Hawaii tourism authority strategic
21 plan for:
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1 (A) The protection, preservation, maintenance, and
2 enhancement of natural resources, including
3 beaches, important to the visitor industry;
4 (B) Planning, construction, and repair of facilities;
5 and
6 (C) Operation and maintenance costs of public lands,
7 including beaches, connected with enhancing the
8 visitor 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 4 . Statutory material to be repealed is bracketed
17 and stricken. New statutory material is underscored.
18 SECTION 5 . This Act shall take effect on July 1, 2050 .
HB1665 HD1 HMS 2018-1776 10
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H . B . IVO. H D51
Report Title:
Transient Accommodations Tax; Counties; Reimbursement; Tax
Credit; Primary Residence; Property Owner
Description:
Amends the amount of transient accommodations tax revenues
allocated to the counties from a specified sum to reimbursements
to the county for expenditures related to specified county
public services and specified tax credits allowed. Provides a
primary residential property owner who does not provide
transient accommodations with a tax credit. (HB1665 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
HB1665 HD1 HMS 2018-1776
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