RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.

2025 Regular Session Introduced by Sharon Moriwaki

SB 1215 establishes a visitor impact tax in Hawaii to fund sustainability and community programs, addressing tourism's effects on local communities and the environment.

Referred to EDT, WAM/JDC.

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Purpose and Intent

Senate Bill 1215 (SB 1215) aims to amend the existing framework surrounding the Transient Accommodations Tax (TAT) in Hawaii. The primary intent of the bill is to establish the Malama Aina Visitor Impact Tax Program and create a corresponding Malama Aina Visitor Impact Tax Special Fund. This initiative seeks to address the impacts of tourism on local communities and the environment by generating revenue that can be reinvested into sustainability and community support programs.

Key Provisions

Establishment of the Malama Aina Visitor Impact Tax Program: The bill proposes the creation of a program specifically designed to manage and allocate funds generated from the new visitor impact tax.

Creation of the Malama Aina Visitor Impact Tax Special Fund: This fund will be dedicated to supporting projects and initiatives that mitigate the negative impacts of tourism, focusing on environmental conservation and community well-being.

Reporting Requirements: The bill outlines specific reporting requirements for the administration of the tax program, ensuring transparency and accountability in how funds are utilized.

Affected Parties

Tourism Industry: The bill will directly impact businesses involved in the tourism sector, as they will be subject to the new visitor impact tax.

Local Communities: Residents in areas heavily affected by tourism may benefit from the programs funded by the Malama Aina Visitor Impact Tax Special Fund, which aims to enhance community resources and environmental protections.

State Government: The Department of Business, Economic Development & Tourism (DBEDT) will play a key role in implementing and overseeing the new tax program and fund.

Procedural Timeline

Introduced: January 21, 2025

First Reading: January 23, 2025 (the bill passed its first reading in the Senate)

Referred to Committees: January 27, 2025 (the bill was referred to the Economic Development and Technology (EDT) and the Ways and Means/ Judiciary (WAM/JDC) committees for further consideration)

Conclusion

SB 1215 represents a significant step towards addressing the challenges posed by tourism in Hawaii. By establishing a dedicated tax program and fund, the bill aims to promote sustainable tourism practices and enhance the quality of life for local residents. As the bill progresses through the legislative process, its implications for the tourism industry and local communities will become clearer.

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