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HB1950
HOUSE OF REPRESENTATIVES
H.B. NO.
1950
THIRTY-THIRD LEGISLATURE, 2026
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:
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SECTION 1.
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The legislature finds that it is vitally
important to dedicate a set percentage of revenue derived from the transient
accommodations tax to state-led marketing, branding, and tourism
management.
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In doing so, the State
ensures that its marketing, branding, and tourism-management efforts are scaled
to the success of tourism while also reserving resources to help the industry weather
downturns.
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When the visitor industry
thrives, the State invests more into protecting the Hawaii brand.
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Conversely, when the visitor industry slows, the
State has guaranteed resources to fight for market share.
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The State must be equipped with the necessary tools
to compete effectively on the world stage to protect the jobs, tax revenues,
and economic strength on which the people of Hawaii depend.
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The legislature further finds that Hawaii's
economy remains uniquely dependent on a healthy and vibrant visitor industry.
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For the 1,400,000 residents of the State,
tourism is not merely a sector, it is a lifeline.
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More than 200,000 residents directly derive
their livelihoods from this industry, and thousands more rely on the secondary
economic activity it generates.
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The legislature also finds that unlike
unmanaged growth, state-led marketing would allow Hawaii to curate its visitor
profile, focusing on those who respect the State's culture and environment and who
contribute more per capita to local businesses.
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Furthermore, the legislature finds
that history and economic modeling have demonstrated that state-led marketing
dollars are not "costs" but investments with a measurable return.
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Every dollar spent on strategic marketing and branding
returns significantly more to the State through general excise tax and transient
accommodations tax collections than the initial investment, thus creating a
self-sustaining cycle of revenue for the general fund.
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Therefore, the purpose of this Act
is to establish the state-led marketing and branding special fund and require a
portion of all transient accommodations tax revenues that would otherwise be
deposited into the general fund to be deposited into the special fund, to be
used for state-led marketing, branding, and tourism management.
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SECTION 2.
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Chapter 201, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:
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"
�201-
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State-led
marketing and branding special fund; annual comprehensive plan.
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(a)
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There is created within the state treasury a
s
tate-led marketing and branding special fund,
into which shall be deposited a portion of the revenues from the transient
accommodations tax, as provided by section
237D-6.5
.
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(b)
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To ensure transparency and alignment with
state goals, the department shall annually develop and submit to the
legislature a comprehensive marketing, branding, and tourism management plan to
guide its
state-led marketing,
branding, and tourism management efforts over the subsequent fiscal year
.
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The plan shall be subject to approval by the
legislature by concurrent resolution before the beginning of the fiscal year to
which the plan applies.
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(c)
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Moneys in the special fund shall be used solely for state-led marketing,
branding, and tourism management, to be conducted by the department in
accordance with the
comprehensive marketing, branding, and tourism
management plan approved by the legislature for that fiscal year
.
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No
moneys shall be appropriated out of the state-led marketing and branding
special fund for expenditure in any fiscal year unless the legislature has
approved a comprehensive marketing, branding, and tourism management plan for
that fiscal year.
"
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SECTION
3
.
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Section
237D-6.5, Hawaii Revised Statutes, is amended by amending subsection (b) to
read as follows:
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"(b)
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Except for the revenues collected pursuant to
section 237D-2(e), revenues collected under this chapter shall be distributed
in the following priority, with the excess revenues to be deposited into the
general fund:
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(1)
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$1,500,000
shall be allocated to the Turtle Bay conservation easement special fund
beginning July 1, 2015, for the reimbursement to the state general fund of debt
service on
reimbursable general obligation bonds
, including ongoing expenses related to the issuance of the
bonds, the proceeds of which were used to acquire the conservation easement and
other real property interests in Turtle Bay, Oahu, for the protection,
preservation, and enhancement of natural resources important to the State,
until the bonds are fully amortized;
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(2)
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$11,000,000 shall
be allocated to the convention center enterprise special fund established under
section 201B-8;
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(3)
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An allocation
shall be deposited into the tourism emergency special fund, established in
section 201B-10, in a manner sufficient to maintain a fund balance of
$5,000,000 in the tourism emergency special fund; [
and
]
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(4)
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$3,000,000
shall be allocated to the special land and development fund established under
section 171-19 for:
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(A)
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The protection,
preservation, maintenance, and enhancement of natural resources, including
beaches;
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(B)
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Planning
,
construction, and repair of facilities;
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(C)
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Operation
,
maintenance, and improvement costs of public lands, including beaches; and
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(D)
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Any related debt
service and financing agreement costs[
.
]
; and
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(5)
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Fifteen per
cent shall be deposited into the state-led marketing and branding special fund established
by section 201- .
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All transient accommodations taxes
shall be paid into the state treasury each month within ten days after
collection and shall be kept by the state director of finance in special
accounts for distribution as provided in this subsection."
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SECTION 4.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 5.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
Transient
Accommodations Tax; Dedicated Funding; State-led Marketing and Branding Special
Fund; Annual Comprehensive Marketing, Branding, And Tourism Management Plan
Description:
Establishes
the State-led Marketing and Branding Special Fund and requires that a portion
of all transient accommodations taxes that would otherwise be deposited into
the general fund be deposited into the special fund
, to be used for state-led
marketing, branding, and tourism management
.
�
Requires the Department
of Business, Economic Development, and Tourism to develop and submit to the
Legislature an annual comprehensive marketing, branding, and tourism management
plan.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.