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Senator Baker's committees report states: “Your committee also notes that transient accommodations management companies tend to hire professional accounting firms or staff who are familiar with the tax intricacies of chapter 237D, Hawaii Revised Statues, the transient accommodations tax law.
The statewide temporary increase in Transient Accommodations Tax (TAT) rates partially mitigates the impact of visitor declines on revenues; however, the state legislature discussed but did not enact a proposal to withhold these revenues from counties.
Proposals to close the gap include further spending reductions, additional modest debt restructuring, and suspension of the sharing of the transient accommodations tax with counties, among other items.
Both years' results stem from weak transient accommodations tax (TAT) revenue and certain non-recurring expenditures.
0% decline in transient accommodations tax (TAT) revenue and certain one-time expenditures.