HomeMy WebLinkAbout03-13-17 Agenda PacketJames Whitfield Members:
Chair Preston Chong
Jan Hashizume
Joanne Nakashima
Tricia Lynn Yamashita
Laurie Yoshida
Tyler Rodighireo
Vice Chair
COUNTY OF KAUA'I COST CONTROL COMMISSION
NOTICE OF MEETING AND AGENDA
Monday, March 13, 2017
1:30 p.m. or shortly thereafter
Mo'ikeha Building, Meeting Room 2A/2B
4444 Rice Street, Lihue, HI 96766
Oath of Office for new Commissioner Preston Chong Is' term ending 12/31/2019
CALL TO ORDER
APPROVAL OF MINUTES
• Regular Open Session meeting minutes of January 9, 2017
BUSINESS
CCC 2017-06
Briefing by Acting County Engineer Lyle Tabata or his representative on cost related to the
County's road resurfacing program and annual schedules on the amount of resurfacing
projected to be done.
CCC 2017-07
Briefing by Boards and Commissions Administrator Jay Furfaro on House Bill No. 1586
relating to taxation.
CCC 2017-05
Continued discussion on other possible areas to investigate to reduce the cost of county
government while maintaining a reasonable level of public service in accordance to
Section 28.04 of the Kauai County Charter Article XXVIII Cost Control Commission.
ANNOUNCEMENTS
Next meeting — TBA
equal Opportunity Employer
NOTICE OF EXECUTIVE SESSION
Pursuant to Hawai'i Revised Statutes §92-7 (a), the Commission may, when deemed necessary,
hold an Executive Session on any agenda item without written public notice if the Executive
Session was not anticipated in advance. Any such Executive Session shall be held in pursuant
to H.R.S. §92-4 and §92-9 and shall be limited to those items described in H.R.S. §92-5(a).
Discussions held in Executive Session are closed to the public.
ADJOURNMENT
PUBLIC COMMENTS and TESTIMONY
Persons wishing to offer comments are encouraged to submit written testimony at least
24 -hours prior to the meeting indicating:
1. Your name and if applicable, your position/title and organization you are
representing
2. The agenda item that you are providing comments on; and
3. Whether you will be testifying in person or submitting written comment only.
4. If you are unable to submit your testimony at least 24 hours prior to the meeting,
please provide 10 copies of your written testimony at the meeting.
The length of time allocated to person(s) wishing to present verbal testimony may be limited at
the discretion of the chairperson or presiding member.
cc: First Deputy County Attorney Matthew Bracken
Send written testimony to:
Cost Control Commission
Office Boards and Commissions
4444 Rice Street, Suite 150
Lihue, HI 96766
E -Mail: mromoOwkauai.gov
Phone: (808) 241-4920
Fax: (808) 241-5127
SPECIAL ASSISTANCE
If you need an alternate format or an auxiliary aid to participate, please contact the Boards and
Commissions Support Clerk at (808) 241-4920 at least five (5) working days prior to the
meeting.
2]Page
Cost Control Commission — March 13, 2017
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Measure Status
HB1586 HD1
Measure Title: RELATING TO TAXATION.
Report Title: Transient Accommodations Tax; Counties; Income Tax Rates; Personal Exemption;
Itemized Deductions
Phases out the county allocation of transient accommodations tax revenues over a 3 -year
Description: period. Implements new income tax brackets and rates over a 3 -year period. Doubles the
amount of the personal exemption. Places limitations on claims for itemized tax
deductions.
Companion:
Package: None
Current Referral: TOU, FIN
Introducer(s): YAMASHITA, CACHOLA, CHOY, CULLEN, DECOITE, HASHEM, JOHANSON, KEOHOKALOLE,
LOPRESTI, LOWEN, LUKE, NAKASHIMA, OHNO, ONISHI, OSHIRO, TAKAYAMA, TAKUMI
sort SIC
Dabs
Status Text
1/25/2017
H Introduced and Pass First Reading.
1/30/2017
H Referred to TOU, FIN, referral sheet 6
2/8/2017
H Bill scheduled to be heard by TOU on Tuesday, 02-14-17 10:00AM in House conference
room Auditorium.
The committees on TOU recommend that the measure be PASSED, WITH AMENDMENTS.
2/14/2017
H The votes were as follows: 7 Ayes: Representative(s) Onishi, Cachola, Choy, Ito, Ohno;
Ayes with reservations: Representative(s) Tokioka, Woodson; 1 Noes: Representative(s)
Ward; and Excused: none.
2/17/2017
H Reported from TOU (Stand. Com. Rep. No. 612) as amended in HD 1, recommending
passage on Second Reading and referral to FIN.
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with
2/17/2017
H Representative(s) Har, Tupola voting aye with reservations; Representative(s) McKelvey,
Ward voting no (2) and Representative(s) DeCoite, Tokioka excused (2).
2/24/2017
H Bill scheduled to be heard by FIN on Tuesday, 02-28-17 11:00AM In House conference
room 308.
5 = Senate I H = House I D = Data Systems $ - Appropriation measure I ConAm = Constitutional
Amendment
Some of the above items require Adobe Acrobat Reader. Please visit Adobe's download oaae for detailed
instructions.
HB1586 HD1
Page 1 of 1
http://www. capitol.hawaii. gov/measure_indiv. aspx?billtype=HB &billnumber= l 5 8 6&year... 2/28/2017
HOUSE OF REPRESENTATIVES
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII
H.B. NO. 1586
H.D.
H.D. 1
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 PART I
2 SECTION 1. The legislature finds that the current property
3 tax structure caters to non-residents and burdens local
4 residents, particularly
the
senior population. Non-residents
5 are afforded the luxury
of
an investment in highly appreciable
6 land while,
at the same time, they are
able to
export
their
7 income tax
to a state where the rate is
lower.
This
results in
8 raising the
cost of living
for Hawaii residents.
9 While
the legislature
believes that the tax burden should
10 be shifted to non-residents, the legislature also believes that
11 a fair assessment of homeowner exemptions is needed to offset
12 the burdens local residents face. The legislature finds that
13
the first step in
this process
should be
to, over a three-year
14
period, transfer
the portion of
transient
accommodations tax
15 revenues currently allocated to the counties into the state
16 general fund. Second, income tax rates for Hawaii residents
17 should be simplified and made more progressive over a period of
HB 158 6 HD 1 HM�ISII� 2017-2244 �
Page 2H.B.
N 1586
H.D. 1
1 three taxable years. As part of this process, the percentage of
2 the population that is able to qualify for the middle-class tax
3 bracket will expand and a zero per cent tax bracket will be
4 established for residents who earn a significantly lower income,
5 in order to effectively serve the portion of the population that
6 truly needs the most assistance.
7 The purpose of this Act is to address the high cost of
8 living in the State of Hawaii by enacting tax reform that
9 reduces the tax burden for low- and middle-income earners.
10 PART II
11 SECTION 2. Section 237D-6.5, Hawaii Revised Statutes, is
12 amended by amending subsection (b) to read as follows:
13 "(b) Revenues collected under this chapter shall be
14 distributed in the following priority, with the excess revenues
15 to be deposited into the general fund:
16 (1) $1,500,000 shall be allocated to the Turtle Bay
17 conservation easement special fund beginning July 1,
18 2015, for the reimbursement to the state general fund
19 of debt service on reimbursable general obligation
20 bonds, including ongoing expenses related to the
21 issuance of the bonds, the proceeds of which were used
HB15a5 HD1 HMS 2017-2244 2
MIG IIG����GG��II�IIG��I�II�GGI��
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Page 3H.B.
N 1586
H.D. 1
to acquire the conservation easement and other real
property interests in Turtle Bay, Oahu, for the
protection, preservation, and enhancement of natural
resources important to the State, until the bonds are
fully amortized;
(2) $26,500,000 shall be allocated to the convention
center enterprise special fund established under
section 201B-8;
(3) $82,000,000 shall be allocated to the tourism special
fund established under section 201B-11; provided that:
(A) Beginning on July 1, 2012, and ending on June 30,
2015, $2,000,000 shall be expended from the
tourism special fund for development and
implementation of initiatives to take advantage
of expanded visa programs and increased travel
opportunities for international visitors to
Hawaii;
(B) Of the $82,000,000 allocated:
(i) $1,000,000 shall be allocated for the
operation of a Hawaiian center and the
HE158�6 HD1 HMS j�2III0I1I7II-22I�p44 !�
I�I�II��RI �I���I�II��nIOI�I�'II�I��u��utllWYl�!�!
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Page 4
H.B. N .D
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H.D. 1
museum of Hawaiian music and dance at the
Hawaii convention center; and
(ii) 0.5 per cent of the $82,000,000 shall be
transferred to a sub -account in the tourism
special fund to provide funding for a safety
and security budget, in accordance with the
Hawaii tourism strategic plan 2005-2015; and
(C) Of the revenues remaining in the tourism special
fund after revenues have been deposited as
provided in this paragraph and except for any sum
authorized by the legislature for expenditure
from revenues subject to this paragraph,
beginning July 1, 2007, funds shall be deposited
into the tourism emergency special fund,
established in section 201B-10, in a manner
sufficient to maintain a fund balance of
$5,000,000 in the tourism emergency special fund;
(4) $103,000,000 for fiscal year 2014-2015, $103,000,000
for fiscal year 2015-2016, $103,000,000 for fiscal
year 2016-2017, [and] $93,000,000 for [eft] fiscal
year (thereaft ] 2017-2018, $62,000,000 for fiscal
HB15II86 �HIID�I1 BH IMI�S I�2p0III1I7-2244
����Ilul��l�'��ultllllll�ll�lut".��I�IWIIIWI����
4
Page 5
H.B. N H.D.1586
D. 1
1 year
2018-2019, and $31,000,000 for
fiscal
year 2019-
2 2020
shall be allocated as follows:
Kauai
county
3 shall receive 14.5 per cent, Hawaii county shall
4 receive 18.6 per cent, city and county of Honolulu
5 shall receive 44.1 per cent, and Maui county shall
6 receive 22.8 per cent; [pEesa}ded-that _-......-__-_ng with
7 fiscal year- 2018, 2019, a sum that represents --rt_ t _
8 diffeEenee between a eeunty publie-empleyeL-19 annael
9 r-equrred eeRt-rihutien €eE the separate -tit fun
10 established under seetlen 87A 42 and the ameuRt—ef the
11 eeunty publie—empleyer-'s-eentributiens irate that trust
12 fund shall be the -state -di=eeter of
13 finaneemend depesitwife the eredit of the ___ :ty
14 publie-empleyeE l s annual Eequired-ee b en _nt
15 that tEust fund- in eeeh fieeal year, art-previdled i3
16 seetien-87A 42, if the respeet-iv= - - -raty fails to
17 i=efn-it- the --tetal ameunt-ef the eeunt l a required annual
18 eentributiens as required under seetien 87A 43 ; ] and
19 (5) $3,000,000 shall be allocated to the special land and
20 development fund established under section 171-19;
21 provided that the allocation shall be expended in
HB1586 HD1 HMS 2017-2244 5
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86 NO.
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H.D. 1
1 accordance with the Hawaii tourism authority strategic
2 plan for:
3 (A) The protection, preservation, maintenance, and
4 enhancement of natural resources, including
5 beaches, important to the visitor industry;
6 (B) Planning, construction, and repair of facilities;
7 and
8 (C) Operation and maintenance costs of public lands,
9 including beaches, connected with enhancing the
10 visitor experience.
11 All transient accommodations taxes shall be paid into the
12 state treasury each month within ten days after collection and
13 shall be kept by the state director of finance in special
14 accounts for distribution as provided in this subsection.
15 As used in this subsection, "fiscal year" means the twelve -
16 month period beginning on July 1 of a calendar year and ending
17 on June 30 of the following calendar year."
18 PART I I I
19 SECTION 3. Section 237D-6.5, Hawaii Revised Statutes, is
20 amended by amending subsection (b) to read as follows:
HB1586 HD1 HMS 2017-2244 6
I�II�I�Iall V�111��8111�I�IIIIIIIIIIVVIIIV�1111�1��
Page 715
86 NO.
1586
H.D. 1
1 "(b) Revenues collected under this chapter shall be
2 distributed in the following priority, with the excess revenues
3 to be deposited into the general fund:
4 (1) $1,500,000 shall be allocated to the Turtle Bay
5 conservation easement special fund beginning July 1,
6 2015, for the reimbursement to the state general fund
7 of debt service on reimbursable general obligation
8 bonds, including ongoing expenses related to the
9 issuance of the bonds, the proceeds of which were used
10 to acquire the conservation easement and other real
11 property interests in Turtle Bay, Oahu, for the
12 protection, preservation, and enhancement of natural
13 resources important to the State, until the bonds are
14 fully amortized;
15 (2) $26,500,000 shall be allocated to the convention
16 center enterprise special fund established under
17 section 201B-8;
18 (3) $82,000,000 shall be allocated to the tourism special
19 fund established under section 201B-11; provided that:
20 (A) Beginning on July 1, 2012, and ending on June 30,
21 2015, $2,000,000 shall be expended from the
HB1586 HD1 HMS 2017-2244 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Page 8
H.B. N .D
. H
H.D. 1
tourism special fund for development and
implementation of initiatives to take advantage
of expanded visa programs and increased travel
opportunities for international visitors to
Hawaii;
(B) Of the $82,000,000 allocated:
(i) $1,000,000 shall be allocated for the
operation of a Hawaiian center and the
museum of Hawaiian music and dance at the
Hawaii convention center; and
(ii) 0.5 per cent of the $82,000,000 shall be
transferred to a sub -account in the tourism
special fund to provide funding for a safety
and security budget, in accordance with the
Hawaii tourism strategic plan 2005-2015; and
(C) Of the revenues remaining in the tourism special
fund after revenues have been deposited as
provided in this paragraph and except for any sum
authorized by the legislature for expenditure
from revenues subject to this paragraph,
beginning July 1, 2007, funds shall be deposited
HB1586 HD1 HMS 2017-2244
8
Page 9
H.B. NO. .D
. H
H.D. 1
1 into the tourism emergency special fund,
2 established in section 201B-10, in a manner
3 sufficient to maintain a fund balance of
4 $5,000,000 in the tourism emergency special fund;
5 and
6 $103,999,999 fer- fiseal yeaE 2014 2015,$1G3,GQQ,GGG
7 fer fiseal-year 29IS 2916, $103,990,990 fer- fiseal
8 year 2 916 2017, $ 9 3 , , ^ ^ ^ €ems €mea year 2917 2018,
9 $62,990,999 fer seal yeaE 29-18-2019, and $31,999,
10 feE fiasal yew 2019 2 929 shall e aileeated--as
11 fellews ! Kauai eeuntl shall reeeive 14.5 pereent,
12 Hawaii eeunty shall -re ee-ive 18.6 peLc eente-icy and
13 eek —e€ Henelialia shall--eeive 44.1pereent, an
14 Piaui eey-shall-eeeive 22.8 per eent; pr- _a_a that
15 ee teneing with fiseal yeaz'91-8--2-919 , a sttm that -
16 represents -the di€€er-enee between a eeunt j ru'-,'_e
17 empleyeEls azuuai required eentribu ien fer the
18 separate trust fund established ianderseetien 8?A 42
19 and the-ameunt e f the eeunty publie-emp l-eyer's
20 e9butie=r3- rn that trusa. fund -shall rui. re ta 7�ieQ
21 by the state d}:Feeter e€ finane and depesited t_ the
HB 15 86 IIHD 1 HMS IIIS�VV 2017-2244 jjIII[[IIII II��mm 9
III������II�I�I��EI�GI�I��lul�y� ���I�Il�I��u[IDIuIU�lL' III
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Page 10
H.B. N .D
. H
H.D. 1
e Tedi t ems- the -eeugubli e-emp l e• r I a annual require
eentrib-atien inte-fat- trust fund in eaeh fiseal year,
as previded-in seetren 87= 42, if the Lespeetive
eeunty fails t er-efaitthe Leta l afneuRt of tie-eeant
Eequ}red annual aeRtributfens, as _ of ;Eea undle-rr
seetieR 87A 43; a -Rd
{}-] (4) $3,000,000 shall be allocated to the special land
and development fund established under section 171-19;
provided that the allocation shall be expended in
accordance with the Hawaii tourism authority strategic
plan for:
(A) The protection, preservation, maintenance, and
enhancement of natural resources, including
beaches, important to the visitor industry;
(B) Planning, construction, and repair of facilities;
and
(C) Operation and maintenance costs of public lands,
including beaches, connected with enhancing the
visitor experience.
All transient accommodations taxes shall be paid into the
state treasury each month within ten days after collection and
HB1586 HD1 HMS 2017-2244
IIRIIVV�aVlll���l l IV �eVIIVIVRVIII� VR���RIIIIRIUIRIIV�I��
2.0
Page 1115
86 NO.
1586
H.D.1
1 shall be
kept
by the state
director of
finance
in special
2 accounts
for
distribution
as provided
in this
subsection.
3
As used in this subsection,
"fiscal year" means the twelve -
4
month period beginning on July 1
of a calendar year and ending
5
on June 30 of the following calendar year.,,
6
PART IV
7
SECTION 4. Section 235-51,
Hawaii Revised Statutes, is
8
amended by amending subsections
(a), (b), and (c) to read as
9
follows:
10
,(a) There is hereby imposed
on the taxable income of (1)
11
every taxpayer who files a joint
return under section 235-93;
12
and (2) every surviving spouse a
tax determined in accordance
13
with the following table:
14
In the case of any taxable
year beginning after
15
December 31, 2001:
16
If the taxable income
is: The tax shall be:
17
Not over $4,000
1.40% of taxable income
18
Over $4,000 but
$56.00 plus 3.20% of
19
not over $8,000
excess over $4,000
20
Over $8,000 but
$184.00 plus 5.50 of
21
not over $16,000
excess over $8,000
HB1586 HD1 HMS 2017-2244 11
Page 12H.B.
N 1586
H.D. 1
1
Over $16,000 but
$624.00 plus 6.40% of
2
not over $24,000
excess
over
$16,000
3
Over $24,000 but
$1,136.00
plus
6.80% of
4
not over $32,000
excess
over
$24,000
5
Over $32,000 but
$1,680.00
plus
7.20% of
6
not over $40,000
excess
over
$32,000
7
Over $40,000 but
$2,256.00
plus
7.60% of
8
not over $60,000
excess
over
$40,000
9
Over $60,000 but
$3,776.00
plus
7.90% of
10
not over $80,000
excess
over
$60,000
11
Over $80,000
$5,356.00
plus
8.25% of
12
excess
over
$80,000.
13
In the case of any taxable
year beginning after
14
December 31. 2006:
15
If the taxable income is:
16
Not over $4,800
17
Over $4,800 but
18
not over $9,600
19
Over $9,600 but
20
not over $19,200
21
Over $19,200 but
The tax shall be:
1.40% of taxable income
$67.00 plus 3.20% of
excess over $4,800
$221.00 plus 5.50% of
excess over $9,600
$749.00 plus 6.40% of
HB1586 HD1 HMS 2017-2244 12
Page 13H.B.
N 1586
H.D. 1
1
not over $28,800
excess
over
$19,200
2
Over $28,800 but
$1,363.00
plus
6.80% of
3
not over $38,400
excess
over
$28,800
4
Over $38,400 but
$2,016.00
plus
7.20% of
5
not over $48,000
excess
over
$38,400
6
Over $48,000 but
$2,707.00
plus
7.60% of
7
not over $72,000
excess
over
$48,000
8
Over $72,000 but
$4,531.00
plus
7.90% of
9
not over $96,000
excess
over
$72,000
10
Over $96,000
$6,427.00
plus
8.25% of
11
excess
over
$96,000.
12
In the case of any taxable
year beginning after
13
December 31, 2017:
14
If the taxable income
is: The tax shall be:
15
Not over $15,000
$0
16
Over $15,000 but
6.64% of
taxable income
17
not over $75,000
in excess of
$15,000
18
Over $75,000 but
$3,984.00
plus
7.79% of
19
not over $225,000
excess
over
$75,000
20
Over $225,000
$15,669.00 plus 8.50% of
21
excess
over
$225,000.
IIHII�E15III8�6 HHD11� HMS 2u017p-2�2I44III 13
IUl�l�l Ilu�lul��II��EI' I��N����tlI��I���VI�I'�II��II.I' IU�I� W
Page 1415
86 NO.
1586
H.D. 1
1
In the case of any taxable
year beginning after
2
December 31, 2018:
3
If the taxable income
is: The tax shall be:
4
Not over $16,125
$0
5
Over $16,125 but
5.38% of taxable income
6
not over $75,000
in excess of $16,125
7
Over $75,000 but
$3,167.00 plus 7.34% of
8
not over $225,000
excess over $75,000
9
Over $225,000
$14,177.00 plus 8.75% of
10
excess over $225,000.
11
In the case of any taxable
year beginning after
12
December 31, 2019:
13
If the taxable income
is: The tax shall be:
14
Not over $17,500
$0
15
Over $17,500 but
4.12% of taxable income
16
not over $75,000
in excess of $17,500
17
Over $75,000 but
$2,369.00 plus 6.88% of
18
not over $225,000
excess over $75,000
19
Over $225,000
$12,689.00 plus 9.00% of
20
excess over $225,000.
IIHIIIIEI�1 I5flfl8mm6II��II HD��1IIUuII��HM�S �I2�IIg0�1�7IIII-2III2Ip�4I�4 14
QI�Ii:GII�EIIIIIII �Il I��111�i�Ik�4ll@II �I�WIlul911!�I�IVUN�Wu41�1��
Page 1515
86 NO.
1586
H.D. 1
1
(b)
There is hereby imposed on
the taxable income of every
2
head of a
household a tax determined
in accordance with the
3
following
table:
4
In the case of any taxable year
beginning after
5
December
31, 2001:
6
If the taxable income is:
The tax shall be:
7
Not over $3,000
1.40% of taxable income
8
Over $3,000 but
$42.00 plus 3.20% of
9
not over $6,000
excess over $3,000
10
Over $6,000 but
$138.00 plus 5.50% of
11
not over $12,000
excess over $6,000
12
Over $12,000 but
$468.00 plus 6.40% of
13
not over $18,000
excess over $12,000
14
Over $18,000 but
$852.00 plus 6.80% of
15
not over $24,000
excess over $18,000
16
Over $24,000 but
$1,260.00 plus 7.20% of
17
not over $30,000
excess over $24,000
18
Over $30,000 but
$1,692.00 plus 7.60% of
19
not over $45,000
excess over $30,000
20
Over $45,000 but
$2,832.00 plus 7.90% of
21
not over $60,000
excess over $45,000
HB1586 HD1 HMS 2017-2244 15
1111 11111011 1111111111101p111111111
Page 16
H.B. N1586
H.D.H.D. 1
1 Over $60,000 $4,017.00 plus 8.25% of
2 excess over $60,000.
3 In the case of any taxable year beginning after
4 December 31. 2006:
5
If the taxable income is:
6
Not over $3,600
7
Over $3,600 but
8
not over $7,200
9
Over $7,200 but
10
not over $14,400
11
Over $14,400 but
12
not over $21,600
13
Over $21,600 but
14
not over $28,800
15
Over $28,800 but
16
not over $36,000
17
Over $36,000 but
18
not over $54,000
19
Over $54,000 but
20
not over $72,000
21
Over $72,000
The tax shall be:
1.40% of taxable income
$50.00 plus 3.20% of
excess over $3,600
$166.00 plus 5.50% of
excess over $7,200
$562.00 plus 6.40% of
excess over $14,400
$1,022.00 plus 6.80% of
excess over $21,600
$1,512.00 plus 7.20% of
excess over $28,800
$2,030.00 plus 7.60% of
excess over $36,000
$3,398.00 plus 7.90% of
excess over $54,000
$4,820.00 plus 8.25% of
HE1586 HD1 HMS 2017-2244 16
I IIaII�n�CIIII�IB��I�IIN��I �I��I���I��I�I��I�I�I���
Page 17H.B.
N 1586
H.D. 1
1
excess over $72,000.
2
In the case of any taxable year
beginning after
3
December 31, 2017:
4
If the taxable income is:
The tax shall be:
5
Not over $15,000
$0
6
Over $15,000 but
6.64% of taxable income
7
not over $75,000
in excess of $15,000
8
Over $75,000 but
$3,984.00 plus 7.79% of
9
not over $225,000
excess over $75,000
10
Over $225,000
$15,669.00 plus 8.50% of
11
excess over $225,000.
12
In the case of any taxable year
beginning after
13
December 31, 2018:
14
If the taxable income is:
The tax shall be:
15
Not over $16,125
$0
16
Over $16,125 but
5.38% of taxable income
17
not over $75,000
in excess of $16,125
18
Over $75,000 but
$3,167.00 plus 7.34% of
19
not over $225,000
excess over $75,000
20
Over $225,000
$14,177.00 plus 8.75% of
21
excess over $225,000.
HE� 15 8II��II6 mm HD 1 HMS 2017-2244
017-2244 17
��I�I�I��II� IVN�IVII�I��III�����I�I�IIWI�I���III�II�JIi��
Page 18H.B.
w 1586
H.D.1
1
In the case of any taxable year
beginning after
2
December 31, 2019:
3
If the taxable income is:
The tax shall be:
4
Not over $17,500
$0
5
Over $17,500 but
4.12% of taxable income
6
not over $75,000
in excess of $17,500
7
Over $75,000 but
$2,369.00 plus 6.88% of
8
not over $225,000
excess over $75,000
9
Over $225,000
$12,689.00 plus 9.00% of
10
excess over $225,000.
11
(c) There is hereby imposed on
the taxable income of (1)
12
every unmarried individual (other than a surviving spouse, or
13
the head of a household) and (2) on
the taxable income of every
14
married individual who does not make
a single return jointly
15
with the individual's spouse under section 235-93 a tax
16
determined in accordance with the following
table:
17
In the case of any taxable year
beginning after
18
December 31, 2001:
19
If the taxable income is:
The tax shall be:
20
Not over $2,000
1.40% of taxable income
21
Over $2,000 but
$28.00 plus 3.20% of
I[HI�B1586 H{�D I1I� HMS I20I�1II�7VIIII-224�4� 1.8
Page 1915
86 NO.
1586
H.D.1
1
not over $4,000
excess over $2,000
2
Over $4,000 but
$92.00 plus 5.50% of
3
not over $8,000
excess over $4,000
4
Over $8,000 but
$312.00 plus 6.40% of
5
not over $12,000
excess over $8,000
6
Over $12,000 but
$568.00 plus 6.80% of
7
not over $16,000
excess over $12,000
8
Over $16,000 but
$840.00 plus 7.20% of
9
not over $20,000
excess over $16,000
10
Over $20,000 but
$1,128.00 plus 7.60% of
11
not over $30,000
excess over $20,000
12
Over $30,000 but
$1,888.00 plus 7.90% of
13
not over $40,000
excess over $30,000
14
Over $40,000
$2,678.00 plus 8.25% of
15
excess over $40,000.
16
In the case of any taxable
year beginning after
17
December 31, 2006:
18
If the taxable income
is: The tax shall be:
19
Not over $2,400
1.40% of taxable income
20
Over $2,400 but
$34.00 plus 3.20% of
21
not over $4,800
excess over $2,400
HB1586 HD1 HMS 2017-2244 19
111111 10[91 l � iRM111111III1G11' I1fIi 111
Page 2015
86 NO.
158fi
H.D. 1
1
Over $4,800 but
$110.00 plus 5.50% of
2
not over $9,600
excess over $4,800
3
Over $9,600 but
$374.00 plus 6.40% of
4
not over $14,400
excess over $9,600
5
Over $14,400 but
$682.00 plus 6.80% of
6
not over $19,200
excess over $14,400
7
Over $19,200 but
$1,008.00 plus 7.20% of
8
not over $24,000
excess over $19,200
9
Over $24,000 but
$1,354.00 plus 7.60% of
10
not over $36,000
excess over $24,000
11
Over $36,000 but
$2,266.00 plus 7.90% of
12
not over $48,000
excess over $36,000
13
Over $48,000
$3,214.00 plus 8.25% of
14
excess over $48,000.
15
In the case of any taxable
year beginning after
16
December 31, 2017:
17
If the taxable income
is: The tax shall be:
18
Not over $7,500
$0
19
Over $7,500 but
6.64% of taxable income
20
not over $37,500
in excess of $7,500
21
Over $37,500 but
$1,992.00 plus 7.79% of
HB1586 HD1 HMS 2017-2244 20
Page 21H.B.
N 1586
H.D. 1
1 not over $112,500
excess over
$37,500
2 Over $112,500
$7,834.00 plus
8.50% of
8
3
excess over
$112,500.
not over $37,500
4 In the case of any taxable
year beginning after
Over $37,500 but
5 December 31, 2018:
6
If the taxable income
is: The tax shall be:
7
Not over $8,062
$0
8
Over $8,062 but
5.38% of taxable income
9
not over $37,500
in excess of $8,062
10
Over $37,500 but
$1,584.00 plus 7.34% of
11
not over $112,500
excess over $37,500
12
Over $112,500
$7,089.00 plus 8.75% of
13
excess over $112,500.
14
In the case of any taxable
year beginning after
15
December 31, 2019:
16
If the taxable income
is: The tax shall be:
17
Not over $8,750
$0
18
Over $8,750 but
4.12% of taxable income
19
not over $37,500
in excess of $8,750
20
Over $37,500 but
$1,184.00 plus 6.88% of
21
not over $112,500
excess over $37,500
HB1586 HD1 HMS 2017-2244 21
11l11111.011111911111111111111111111111
Page 22H.B.
N 1586
H.D. 1
1 Over $112,500 $6,344.00 plus 9.00% of
2 excess over $112,500."
3 PART V
4 SECTION 5. Section 235-54, Hawaii Revised Statutes, is
5 amended by amending subsection (a) to read as follows:
6 "(a) In computing the taxable income of any individual,
7 there shall be deducted, in lieu of the personal exemptions
8 allowed by the Internal Revenue Code, personal exemptions
9 computed as follows: Ascertain the number of exemptions which
10 the individual can lawfully claim under the Internal Revenue
11 Code, add an additional exemption for the taxpayer or the
12 taxpayer's spouse who is sixty-five years of age or older within
13 the taxable year, and multiply that number by [$144,] $2,288,
14 for taxable years beginning after December 31, 1984. A
15 nonresident shall prorate the personal exemptions on account of
16 income from sources outside the State as provided in section
17 235-5. In the case of an individual with respect to whom an
18 exemption under this section is allowable to another taxpayer
19 for a taxable year beginning in the calendar year in which the
20 individual's taxable year begins, the personal exemption amount
HE1586 HD1 HMS 2017-2244 22
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Page 2315
86 NO.
1586
H.D. 1
1 applicable to such individual under this subsection for such
2 individual's taxable year shall be zero."
3 PART VI
4 SECTION 6. Chapter 235, Hawaii Revised Statutes, is
5 amended by adding a new section to be appropriately designated
6 and to read as follows:
7 "§235- Itemized deductions; limitations.
8 Notwithstanding any other law to the contrary, itemized tax
9 deductions claimed pursuant to this chapter shall not exceed the
10 lesser of:
11 (1) The limitation on itemized deductions under section 68
12 of the Internal Revenue Code; or
13 (2) Any of the following that may be applicable:
14 (A) $100,000 for a taxpayer filing a single return or
15 a married person filing separately;
16 (B) $150,000 for a taxpayer filing as a head of
17 household; and
18 (C) $200,000 for a taxpayer filing a joint return or
19 as a surviving spouse;
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Page 2415
86 NO.
1588
H.D. 1
1
provided that the cap amounts established in
this
2
paragraph shall not apply to charitable contributions
3
deductible under this chapter."
4
PART VII
5
SECTION 7. Statutory material to be repealed is
bracketed
6
and stricken. New statutory material is underscored.
7
SECTION 8. This Act shall take effect on July 1,
2117;
8
provided that:
9
(1) Part II shall take effect on July 1, 2017;
10
(2) Part III shall take effect on July 1, 2020;
and
11
(3) Parts IV, V, VI shall apply to taxable years
beginning
12
after December 31, 2017.
HB 15 86 I HD 1I HMS 2017-2244
017-2244
241
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H.B. NO. 1H..DD..
1
Report Title:
Transient Accommodations Tax; Counties; Income Tax Rates;
Personal Exemption; Itemized Deductions
Description:
Phases out the county allocation of transient accommodations tax
revenues over a 3 -year period. Implements new income tax
brackets and rates over a 3 -year period. Doubles the amount of
the personal exemption. Places limitations on claims for
itemized tax deductions. (HB1586 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
HB1586 HD1 HMS 2017-2244
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