H.B. 631 Summary

• Authorizes each county in Hawaii to establish a surcharge on transient accommodations tax by county ordinance, following public hearing requirements with notice published at least twice within 30 days prior to the hearing.

• Counties must notify the Director of Taxation within ten days of establishing a surcharge, with the Director administering collection beginning no earlier than 180 days after establishment.

• Limits county surcharges to an unspecified percentage rate of gross rental proceeds and fair market rental value, with the Director of Taxation determining tax allocation among counties for multi-county operators.

• Requires the Director of Finance to deduct one percent of collected county surcharge revenues to reimburse the State for administrative costs, with remaining revenues distributed quarterly to respective counties as general fund realizations.

• Repeals the existing distribution of transient accommodations tax revenues directly to counties and modifies the tax rate structure effective January 1, 2021.