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HB504
HOUSE OF REPRESENTATIVES
H.B. NO.
504
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to environmental stewardship
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
�
The legislature finds that Hawaii's
natural resources, including reefs, oceans, forests, streams, estuaries,
shorelines, and beaches, provide irreplaceable and invaluable benefits to
visitors, residents, and the global community.
�
The Hawaii State Constitution establishes that the State's natural and
cultural resources are subject to the public trust and therefore must be
managed and protected for the benefit of present and future generations.
�
The Hawaii State Constitution further
requires the State and its agencies to protect and enforce native Hawaiian
rights, including traditional and customary practices associated with, and
dependent upon, carefully managed and abundant natural resources.
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The
legislature further finds that Hawaii's natural environment faces significant
environmental pressure from climate change and the heavy use it receives from
persons traveling to enjoy the State's natural resources.
�
The current underinvestment in the State's
natural resources poses a significant liability to the visitor industry and to
Hawaii's residents; the stability of the State's natural systems, including
food systems and water quality; and the ecosystems, services, fisheries,
economic resilience, and health and safety of the State.
�
The escalating impacts from climate change
and visitor use create an increasing threat to Hawaii's island ecosystem and
communities.
�
Additional funding is
needed to restore the State's natural resources to help prevent climate crises
from occurring, including wildfires, floods, coastal erosion, and degradation
of coral reefs.
�
Additional funds are
also needed to respond to climate crises when they occur.
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The
legislature believes that a modest increase in the transient accommodations tax
can generate greatly needed funding to help restore the State's natural
resources, help prevent and respond to climate crises, and leave a more
positive environmental legacy for future generations.
�
The increased tax is a reasonable and
appropriate way to generate these needed revenues.
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Accordingly,
the purpose of this Act is to increase the transient accommodations tax to
create a source of revenue for environmental stewardship, to be implemented
through additional funding to the department of land and natural resources.
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SECTION
2
.
�
Section 237D-2, Hawaii Revised Statutes, is
amended to read as follows:
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"
�237D-2
�
Imposition and rates
.
�
(a)
�
There is levied and shall be assessed and collected each month a tax of:
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(1)
�
Five per cent for
the period beginning on January 1, 1987, to June 30, 1994;
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(2)
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Six per cent for
the period beginning on July 1, 1994, to December 31, 1998;
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(3)
�
7.25 per cent for
the period beginning on January 1, 1999, to June 30, 2009;
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(4)
�
8.25 per cent for
the period beginning on July 1, 2009, to June 30, 2010; [
and
]
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(5)
�
9.25 per cent for
the period beginning on July 1, 2010[
, and thereafter;
]
to June 30,
2025; and
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(6)
�
per cent for the
period beginning on July 1, 2025, and thereafter,
on the gross rental or gross rental proceeds derived
from furnishing transient accommodations.
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(b)
�
Every transient accommodations broker, travel
agency, and tour packager who arranges transient accommodations at
noncommissioned negotiated contract rates and every operator or other taxpayer
who receives gross rental proceeds shall pay to the State the tax imposed by [
subsection
]
subsections
(a)[
,
]
and (f),
as provided in this chapter.
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(c)
�
There is levied and shall be assessed and collected each month, on the
occupant of a resort time share vacation unit, a transient accommodations tax
of:
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(1)
�
7.25 per cent on
the fair market rental value until December 31, 2015;
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(2)
�
8.25 per cent on
the fair market rental value for the period beginning on January 1, 2016, to
December 31, 2016; [
and
]
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(3)
�
9.25 per cent on
the fair market rental value for the period beginning on January 1, 2017[
,
and thereafter.
]
to December 31, 2025; and
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(4)
�
per cent on the
fair market rental value for the period beginning on January 1, 2026, and
thereafter.
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(d)
�
Every plan manager shall be liable for and pay to the State the
transient accommodations tax imposed by subsection (c) as provided in this
chapter.
�
Every resort time share vacation
plan shall be represented by a plan manager who shall be subject to this
chapter.
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(e)
�
Notwithstanding the tax rates established in subsections [
(a)(5)
]
(a)(6)
and [
(c)(3),
]
(c)(4),
the tax rates levied,
assessed, and collected pursuant to subsections (a) and (c) shall be [
10.25
]
per cent for the period beginning on January 1,
2018, to December 31, 2030; provided that:
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(1)
�
[
The
]
per cent of the
tax revenues levied, assessed, and collected pursuant to
this [
subsection that are in excess of the revenues realized from the levy,
assessment, and collection of tax at the 9.25 per cent rate
]
section
shall be deposited quarterly into the mass transit special fund established
under section 248-2.7; and
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(2)
�
If a court of
competent jurisdiction determines that the amount of county surcharge on state
tax revenues deducted and withheld by the State, pursuant to section 248-2.6,
violates statutory or constitutional law and, as a result, awards moneys to a
county with a population greater than five hundred thousand, then an amount
equal to the monetary award shall be deducted and withheld from the tax
revenues deposited under paragraph (1) into the mass transit special fund, and
those funds shall be a general fund realization of the State.
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The remaining tax revenues levied,
assessed, and collected [
at the 9.25 per cent tax rate pursuant to
subsections (a) and (c)
] shall be deposited into the general fund in
accordance with section 237D-6.5(b).
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(f)
�
There is levied and shall
be assessed and collected each month a tax of $20 per night on each furnishing
of a transient accommodation in exchange for points, miles, or other amounts
provided through a membership, loyalty, or rewards program.
�
In addition to amounts owed under this
subsection, any additional gross rental or gross rental proceeds derived from
furnishing or arranging a transient accommodation in exchange for points,
miles, or other amounts provided through a membership, loyalty, or rewards
program shall remain subject to levy, assessment, and collection pursuant to
subsection (a)
.
"
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SECTION
3.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 to protect, manage,
and restore the State's natural resources, including native forests; native
plants and animals; aquatic resources; coastal lands; and freshwater resources.
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The sums
appropriated shall be expended by the
department of land and natural resources for the purposes of this Act.
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SECTION
4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
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SECTION 5.
�
This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
Transient
Accommodations Tax; Minimum Tax; Increase; DLNR; Natural Resources; Appropriation
Description:
Amends
the transient accommodations tax rate.
�
Requires a $20 transient accommodation tax to be levied per night for
each furnishing of transient accommodations
in exchange for points,
miles, or other amounts provided through a membership, loyalty, or rewards
program
.
�
Appropriates funds to DLNR for protection,
management, and restoration of the State's natural resources.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.