HRS § 237D-2.5 — County transient accommodations tax; administration


HRS
[§237D-2.5] County transient
accommodations tax; administration. (a) The county transient
accommodations tax, upon the adoption of a county ordinance and in accordance
with the requirements of section 46-20.7, shall be levied, assessed, and
collected as provided in this section on all gross rental, gross rental
proceeds, and fair market rental value taxable under this chapter. No county
shall set its transient accommodations tax at a rate greater than three per
cent of all gross rental, gross rental proceeds, and fair market rental value
taxable under this chapter. With respect to the county transient
accommodations tax, the applicable county director of finance shall have all
the rights and powers of the director of taxation provided under this chapter.
(b) The county transient accommodations tax,
if adopted, shall be imposed on the gross rental, gross rental proceeds, and
fair market rental value of all written contracts that require the passing on
of the taxes imposed under this chapter; provided that if the gross rental,
gross rental proceeds, and fair market rental value are received as payments
beginning in the taxable year in which the taxes become effective, on contracts
entered into prior to the adoption of the ordinance pursuant to section 46-20.7,
and the written contracts do not provide for the passing on of increased rates
of taxes, the county transient accommodations tax shall not be imposed on the
gross rental, gross rental proceeds, and fair market rental value covered under
the written contracts. The county transient accommodations tax shall be
imposed on the gross rental, gross rental proceeds, and fair market rental
value from all contracts entered into on or after the adoption of the ordinance
pursuant to section 46-20.7, regardless of whether the contract allows for the
passing on of any tax or any tax increases.
(c) No county transient accommodations tax
shall be established on any form of accommodation that is exempt from the taxes
imposed by this chapter pursuant to section 237D-3.