HI House Tourism Committee Holds Hearing on Timeshare Tax Bills

2011-01-31

Issue Brief

Today, the House Tourism Committee heard testimony from the timeshare industry on HB 809 and HB 1163HB 809 proposes to increase the transient accommodations tax (TAT) rate for timeshare units when used by owners from July 1, 2010, to June 30, 2015, by adding 2 percent points from the current 7.25% rate to 9.25%.  In addition, HB 1163 also increases the base maintenance fee calculation from 50% to 150% resulting in a nearly 400% increase in the TAT.  Both ARDA Hawaii and ARDA-ROC testified in opposition to the measures.

Impact

The net effect of these bills is to create the same tax increase that is proposed in HB 1092 and SB 1319, which is to increase the the taxes that timeshare owners pay on their maintenance fees by nearly 400%.

Position/Call to Action

Both ARDA-Hawaii and ARDA-ROC will remain in strong opposition to both of these measures.  In addition, since the Chairman of the Tourism Committee deferred any decision making on the legislation to a later date, ARDA-Hawaii and ARDA-ROC will take this opportunity to meet with him and his staff to arrange for an information hearing about timeshares in the near future.  This will hopefully allow us to educate him on the benefits of timeshare to the state of Hawaii as well as the overall hospitality industry in an effort to persuade him to hold the bill.

Issue Updates

Once we have received word from the Chairman regarding his openness to meet with the industry, we will post updates regarding the meeting and any decision making actions taken on these two legislative initiatives.  So, for now please check back to this page or sign up for email alerts to get the latest on these measures.