HB 1376 Summary

• Authorizes each county to establish a surcharge on transient accommodations tax with rates and administration details to be set by the director of taxation within 180 days of county establishment.

• Reduces the statewide transient accommodations tax rate from 9.25% to 6% effective July 1, 2019, and reduces the rate on resort timeshare vacation units from 9.25% to 6% for the same effective date.

• Maintains a 10.25% combined tax rate through June 30, 2019, with excess revenues deposited into the mass transit special fund, then reduces the combined rate to 7% effective July 1, 2019.

• Establishes the State will collect county surcharges on behalf of counties and deduct a percentage for administrative costs before distributing remaining revenues quarterly to each respective county as a general fund realization.

• Repeals the statutory distribution of transient accommodations tax revenues to individual counties based on fixed percentages (Kauai 14.5%, Hawaii 18.6%, Honolulu 44.1%, Maui 22.8%).