H.B. 518 Summary

• Changes transient accommodations tax (TAT) distribution to counties from a fixed $103 million annually to 45 percent of remaining revenues after state allocations, effective July 1, 2019.

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

• Distributes county allocation proportionally by percentage: Kauai 14.5%, Hawaii County 18.6%, Honolulu 44.1%, and Maui County 22.8%.

• Allows counties to retain portions of their TAT allocation to cover annual required contributions to county employee pension trust funds if county contributions fall short, beginning fiscal year 2018-2019.

• Updates references in statutes 87A-42 and 171-19 to reflect new TAT distribution structure under section 237D-6.5(b)(5).