HB631 Summary

• Authorizes each county in Hawaii to establish a surcharge on transient accommodations tax by ordinance, requiring public hearings and newspaper notice at least twice within 30 days before adoption.

• County surcharge becomes effective no earlier than 180 days after establishment, with the director of taxation administering collection and capping the surcharge at an unspecified percentage (blank in bill).

• State deducts 1% of collected county surcharge revenues to reimburse costs of assessment, collection, and administration, with remaining revenues distributed quarterly to counties as general fund realizations.

• Repeals the existing $103,000,000 allocation of transient accommodations tax revenues to counties (distributed as Kauai 14.5%, Hawaii county 18.6%, Honolulu 44.1%, Maui 22.8%), eliminating direct county distributions.

• Changes state transient accommodations tax rates effective July 1, 2021, to an unspecified amount (blank in bill) and modifies the temporary surcharge provisions that were previously set to expire December 31, 2030.