The state Senate will vote on a bill boosting the counties’ share of the Transient Accommodations Tax to $108 million a year.
Currently, the counties share $103 million, an amount scheduled to decrease to $93 million next fiscal year.
The Senate Ways and Means Committee advanced an amended bill Monday that gives more rather than less.
Hawaii County receives nearly $19.2 million, or 18.6 percent, of the current allocation. That would go up to about $20 million if the bill is adopted by both chambers and signed by Gov. David Ige in its current form.
The original bill, introduced by Sen. Kai Kahele, would have distributed 45 percent of the TAT, a tax on hotels and other lodgings, to the counties, with Hawaii County receiving 18.6 percent of the counties’ share. That could have provided the county with more than $30 million in TAT revenue, its second largest funding source.
Kahele, who sits on the committee and voted for the amendment, said he was satisfied with the version moving forward.
“It wasn’t the full pie that we wanted,” said Kahele, D-Hilo. “We could have gotten nothing.”
The House Finance Committee will hear today another bill that would phase out the counties’ share of TAT revenue throughout three years.
Kahele said he is hopeful his bill will be the “vehicle” the Legislature uses to address the TAT issue.
On Monday, the Senate Ways and Means Committee also advanced bills that would create a distance learning center tied to Hawaii Community College in Puna and a Puna agriculture park. Sen. Russell Ruderman introduced both bills, which will head next to the Senate floor.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
