HI SB2489

Amends the formula for calculating transient accommodations tax on time share units to increase the tax base from one-half of gross daily maintenance fees to an unspecified percentage of gross daily maintenance fees paid by owners and attributable to the time share unit.

Cites that the existing tax formula has not been adjusted since 1998 and significantly underestimates fair market rental value of many time share units, particularly those not rented in the open market.

Defines gross daily maintenance fees to include maintenance costs, operational costs, insurance, repair costs, administrative costs, taxes (other than transient accommodations taxes), resort fees, and reserve/sinking fund payments, while excluding optional services like food and beverage or beach rentals.

Applies to taxable years beginning after December 31, 2018.