HI SB1202

Raise the transient accommodations tax rate from 9.25 percent to 11.25 percent, effective July 1, 2013, and eliminate the sunset provision of the 9.25 percent rate.

Decrease allocations of transient accommodations tax revenue to the convention center enterprise special fund, tourism special fund, and counties, making these allocations permanent.

Repeal the $10 daily tax on complimentary rooms.

Receive support from the Department of Taxation and Department of Budget and Finance, but face opposition from the Hawaii Tourism Authority, hotel industry groups, and county governments concerned about competitiveness and insufficient county funding.

Committee recommends passage to the Committee on Ways and Means, finding that an 11.25 percent rate will provide budget stability and fiscal reserves, though acknowledging concerns about economic effects on Hawaii's tourism competitiveness.