Hawaii Timeshare Tax Bill Set for Hearing

2011-02-24

Issue Brief

On Wednesday, February 23, 2011, the House Finance Committee gave its 48-hour notice that HB 809 would be heard on Friday, February 25, 2011, at 5:00 pm.  The bill, as amended, would provide for an unspecified increase in the transient accommodation tax rate that is used to calculate the taxes timeshare owners pay on their maintenance fees beginning on July 1, 2011, and lasting until June 30, 2015.

Impact

As currently drafted, it is difficult to determine the exact effect of this bill, but one proposed amendment to HB 809 (HB 809 HD2) suggests an increase from the current rate of 7.25% to a new rate of 9.25%.  This means the tax an owner would pay on a $1,000 maintenance fee would increase from $36.25 to $46.25--a 27.5% increase.

Position/Call to Action

ARDA-ROC, in conjunction with ARDA-Hawaii, will be coordinating efforts to bring timeshare owners, resort managers, resort developers and other interested parties to attend the hearing on Friday to voice their opposition.  We ask that anyone who would be affected by the increase in the tax rate submit testimony, by email through following website:  http://www.capitol.hawaii.gov/emailtestimony.  When submitting your testimony, please include your name as well as the following information in the text of your email:

"Testimony for the House Finance Committee hearing on HB 809

 Hearing Information:  Friday, February 25, 5:00pm, Room 308"

Issue Updates

Please continue to check back to www.ardaroc.org for additional updates.

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