HI SB2774

Establishes a 7% annual tax on 75% of destination club dues apportioned to Hawaii-based units, calculated by dividing total annual initiation and dues by worldwide units and multiplying by units in Hawaii.

Requires destination club membership plan managers to register with the Department of Taxation and pay a one-time $15 registration fee.

Exempts destination club units from the definition of "transient accommodations" and distinguishes destination club membership plans from resort time share vacation plans in Hawaii tax code.

Mandates destination club membership plan managers maintain records of annual destination club dues apportioned to the State and file annual tax returns with full tax remittance by the twentieth day of the fourth month following the taxable year.

Becomes effective October 1, 2014, with retroactive application of tax and definition provisions to January 1, 2014; allows existing destination club plans 90 days to register (by December 31, 2014).