HI HB2702

Increases transient accommodations tax (TAT) from 9.25% to 13.00% effective July 1, 2016 for standard accommodations and January 1, 2017 for resort time shares.

Requires one-half of TAT revenues to be distributed to counties (Hawaii, Honolulu, Kauai, and Maui) proportionally based on revenues each county generates under the TAT.

Creates a new general excise tax on food and medical expenses at a rate to be determined (rate amount left blank in bill text), effective January 1, 2017.

Directs remaining TAT revenues after county distributions to be applied toward reducing general excise tax on fuel, state fuel license taxes under section 243-4, and county fuel taxes under section 243-5.

Allows the director of taxation to adjust fuel license taxes and county fuel taxes in accordance with TAT revenue allocations.