HB 321 Summary

• Authorizes each county in Hawaii to adopt a county surcharge on transient accommodations tax by ordinance, not to exceed 25% of gross rental proceeds, with public hearing required.

• County surcharge ordinances must be adopted by July 1, 2022, and any surcharge levied expires December 31, 2026.

• State director of taxation administers collection of county surcharges beginning January 1, 2023, with the State retaining 1% of gross proceeds to cover assessment and collection costs.

• After state cost deductions, quarterly payments of collected surcharges are distributed to the respective counties that adopted the surcharge as general fund revenues.

• Removes previous statutory requirement for state to distribute $103,000,000 in transient accommodations tax revenues to counties and eliminates county funding mechanism for OPEB trust contributions under section 87A-42.