Support returning Transient Accommodation Tax revenue to the counties

The Issue

We support returning Transient Accommodation Tax revenue to the four counties of the State of Hawai'i.

As the County and the Legislature move toward the end of the fiscal year, an annual skirmish arises between the state and the counties over $435 million collected from visitors in the last year.

Every time someone books a hotel room or makes other accommodation, a 9.2 percent tax is levied. There has been a long-running debate about the equitable distribution of the funds:

Should it go to the counties? Should it go toward tourism promotion to generate more revenue? Should it balance the state budget?

Currently the vast majority of hotel revenue is reserved for the state, even though our visitors rely on many county operations including parks, roads, and public safety.

For many years, the counties received a flat percentage of TAT money, until the Legislature capped it at $93 million during the Great Recession. In recent years, the cap on the distribution to the counties has been increased to $103 million, but this is still far less than the counties otherwise would have received under the old formula. What was initially added as a temporary emergency cap has instead become permanent, even as the state's economy has recovered.

Returning the amount that the four counties deserve is the fair thing to do.

avatar of the starter
N APetition StarterI'm a Council Member of the 4th district, who advocates for people's interest at the County level.
This petition had 90 supporters

The Issue

We support returning Transient Accommodation Tax revenue to the four counties of the State of Hawai'i.

As the County and the Legislature move toward the end of the fiscal year, an annual skirmish arises between the state and the counties over $435 million collected from visitors in the last year.

Every time someone books a hotel room or makes other accommodation, a 9.2 percent tax is levied. There has been a long-running debate about the equitable distribution of the funds:

Should it go to the counties? Should it go toward tourism promotion to generate more revenue? Should it balance the state budget?

Currently the vast majority of hotel revenue is reserved for the state, even though our visitors rely on many county operations including parks, roads, and public safety.

For many years, the counties received a flat percentage of TAT money, until the Legislature capped it at $93 million during the Great Recession. In recent years, the cap on the distribution to the counties has been increased to $103 million, but this is still far less than the counties otherwise would have received under the old formula. What was initially added as a temporary emergency cap has instead become permanent, even as the state's economy has recovered.

Returning the amount that the four counties deserve is the fair thing to do.

avatar of the starter
N APetition StarterI'm a Council Member of the 4th district, who advocates for people's interest at the County level.

The Decision Makers

Greggor Ilagan
Greggor Ilagan

Petition Updates