Hawaii House Bills HB 809 and HB 1163 together could create a 400% increase on Hawaii timeshare owners, who are currently the only owners in the U.S. who pay such a tax. As an example, under the current law, a timeshare owner with a $1000 maintenance fee pays a TAT (transient accommodations tax) of $36.20. Under the new legislation, the TAT payment for the same owner would be $138.70.
The Bill SB 809 (titled: Time Share Units; Transient Accommodations Tax; Increase) was scheduled for decision making on Monday, February 7, 2011 at 10:30am in Conference Room 312. The result of the committee meeting was a recommendation that the measure be PASSED, WITH AMENDMENTS. The votes were 9 ayes, 0 noes with 2 excused. There was no indication or notes as to what amendments might be included in this Bill.
The Bill SB 1163 (titled: Taxation, Transient Accommodation Tax; Timeshares) is described as “modifies the transient accommodations tax provisions regarding time share units”. On January 31, 2011 the committee(s) recommended that the measure be deferred. There is currently no scheduled date in the Hawaii Legislature 2011 Regular Session for this Bill to be readdressed.