HI SB198

Authorizes counties to establish a surcharge on transient accommodations tax upon adoption of a county ordinance, provided the ordinance is adopted by December 31, 2019.

Requires counties to conduct a public hearing and establish a registration process to verify compliance with county land use ordinances before implementing the surcharge.

Surcharge collection begins January 1, 2021 at the earliest and must cease by December 31, 2036; the State retains a percentage of collected surcharge revenues to cover administrative costs.

Surcharge applies to all gross rental income and fair market rental value of transient accommodations taxable under state law, excluding exempted forms of accommodation.

If no county adopts a surcharge ordinance by December 31, 2019, the entire act is repealed; counties failing to adopt by that deadline are prohibited from doing so unless authorized by future legislation.