HI SB198

Authorizes each county to establish a surcharge on transient accommodations tax upon approval of a county ordinance, subject to a public hearing requirement.

Counties must adopt surcharge ordinances by December 31, 2019, and surcharges cannot be levied before January 1, 2021 or after December 31, 2036.

The Director of Taxation administers and collects the county surcharges, with the state retaining a percentage of gross proceeds to cover assessment, collection, and administrative costs.

Remaining surcharge revenues are distributed quarterly to counties that adopt the surcharge and become general fund realizations of those counties.

The Act sunsets on December 31, 2036, and is repealed if no county adopts a surcharge ordinance by December 31, 2019; counties that do not adopt by that deadline are prohibited from doing so unless authorized by separate legislation.