HB1173 Summary

• Authorizes each Hawaii county to establish a county surcharge on transient accommodations tax at a maximum rate of 2% by ordinance.

• Requires counties to conduct a public hearing and adopt any surcharge ordinance by December 31, 2019, with notice published in local newspapers at least twice within 30 days before the hearing.

• Surcharge becomes effective January 1, 2021, and automatically expires December 31, 2036; counties that do not adopt an ordinance by December 31, 2019, are prohibited from doing so without separate legislative authorization.

• Director of Taxation shall levy, assess, and collect the surcharge on gross rental proceeds and fair market rental value, with taxpayers required to file schedules designating the taxation district and amount assigned to each county.

• Surcharge does not apply to accommodations exempt under existing transient accommodations tax law and does not affect county distributions under section 237D-6.5.