HB 518 Summary

• Restructures distribution of transient accommodations tax revenues by replacing fixed dollar allocations to counties with a percentage-based system that fluctuates with revenue collection.

• Allocates 45% of remaining revenues (after specific fund allocations) to counties, distributed as: Kauai 14.5%, Hawaii County 18.6%, Honolulu 44.1%, and Maui County 22.8%.

• Maintains fixed allocations of $1.5 million to Turtle Bay conservation easement fund, $16.5 million to convention center fund, $79 million to tourism special fund, and $3 million to special land and development fund.

• Allows the state to retain portions of county allocations to satisfy unfunded county public employer pension contributions under section 87A-42 if counties fail to remit required amounts.

• Effective July 1, 2019, providing a simplified, stable, and predictable allocation mechanism that increases or decreases proportionately with transient accommodations tax revenue changes.