Reps Propose Bill to Increase Neighbor Islands’ Share of TAT

The Hawai‘i House of Representatives Finance Committee will hear a proposed House amendment to Senate Bill 648 SD1 HD1 to increase the amounts of the Transient Accommodations Tax revenues for the Neighbor Islands.

The amendment includes:

• Increasing Hawai‘i Island’s TAT revenues from $19,158,000 to $31,248,000.
• Increasing Kaua‘i’s TAT revenues from $14,935,000 to $24,360,000.
• Increasing Maui’s TAT revenues from $23,484,000 to $38,304,000.

The TAT amount for the City & County of Honolulu is unchanged for a total of $45.4 million per year.

During the 2017 Special Legislative Session, lawmakers voted to raise the TAT by 1% to immediately address the shortfall of O‘ahu’s rail project. At that time, House leaders discussed the possibility of revisiting proposals to increase TAT revenues for the neighbor islands.

The hearing will take place on Thursday, March 15, 2018, at 2 p.m. at the Hawai‘i State Capitol in room 308.

Decision-making will follow the hearing.