HI HB971

Increases the transient accommodations tax rate from 9.25 percent to 11.25 percent effective July 1, 2013, and makes this rate permanent rather than subject to sunset provisions.

Eliminates previous temporary sunset dates (June 30, 2015) for tax rate increases that were set to expire under prior legislation (Acts 61 and 103).

Removes the additional 1-2 percent temporary tax imposed from July 1, 2009 through June 30, 2015 by consolidating all tax increases into the single 11.25 percent rate.

Modifies the distribution formula for transient accommodations tax revenues, reducing allocations to the convention center special fund (from 17.3 to 11.1 percent) and tourism fund (from 34.2 to 22.0 percent), while reducing county allocations (from 44.8 to 28.9 percent), with excess revenues going to the general fund.

Removes sunset provisions and spending caps that were set to expire on June 30, 2015, making the new tax structure and distribution percentages permanent.