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State House Republicans and dissident Democrat Ed Case (Manoa) opposed a bill on the House floor yesterday that would revise part of the hotel room tax. GOP opposes change
in hotel-room taxBy Pat Omandam
Star-BulletinIf the bill is passed, the state's transient accommodations tax for hotel wholesalers would be calculated on the hotel room prices charged to their customers. The tax is currently calculated on the price that the wholesalers paid for the rooms.
The proposal is being pushed by the International Longshore and Warehouse Union. Lawmakers who support it say the state could generate another $30 million in revenue from the hotel room tax if this legal loophole is closed.
House Majority Leader Marcus Oshiro (D, Wahiawa-Whitmore Village) said the measure would not increase room rates, a concern raised by opponents. The measure, House Bill 1589, goes to the House Finance Committee for debate.
Here's a look at a few issues before the Legislature and where they stand:
Water highway
The state would return to the water ferry business under a proposed law that funds a permanent inter-island water ferry transportation system.
The ferry system would be a collaborative effort between the state, counties and federal government. The last island-to-island ferry system operator was Seaflight, which used two hydrofoils in the 1970s to transport between Oahu and the neighbor islands.
The House Transportation Committee hears the bill on Monday.
Consumers would get a tax break under a proposed general excise tax holiday. The measure, heard Monday at the House Economic Development Committee, would designate a day in which consumers who buy clothing under $100 would not have to pay the GET on those purchases.
After being arrested this week for driving under the influence of alcohol, state Rep. Noboru Yonamine said he intends to resign at the end of the session as an example that public officials should be held to a higher standard of conduct.
Yonamine, 66, is in his 12th year as a lawmaker. He was arrested Wednesday night on the H-1 freeway after a police officer noticed he was weaving on the highway.
The House panel killed a bill that would have capped automated teller machine fees at Hawaii banks at $1, citing opposition from the Hawaii Bankers' Association and the state consumer protection office.
Bankers said the average ATM fee for non-customers is $1 to $1.50, while customers are not charged. They said the fee offsets the cost of providing ATM service.
And it is not good public policy for the Legislature to set price limits for private businesses, the association said.
The state Department of Commerce and Consumer Affairs opposed the proposal because it only applies to state-chartered banks and not those with federal charters, such as American Savings Bank or Hawaii National Bank.
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