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Committees back bill to route future TAT increases into conservation and infrastructure funds
Summary
Lawmakers amended HB 2618 to direct future increases from the transient accommodations tax into new and existing special funds for watershed and biodiversity protection, aquatic resources, coastal restoration and a cesspool conversion loan fund, and adopted recommended placeholder amounts for two funds. The measure passed both committees.
House Bill 2618, a measure intended to give the Legislature earlier information about revenue from any future increase in the transient accommodations tax (TAT), advanced with amendments that allocate future collections to a set of special funds.
Committee members and witnesses framed the bill as a transparency and stewardship tool that would let lawmakers and agencies plan for conservation and resilience spending tied to tourism-generated revenue. The Climate Change Mitigation and Adaptation Commission and several organizations testified in support.
During committee deliberations lawmakers agreed to create several targeted special funds: a watershed, biodiversity and wildfire-risk reduction special fund under DLNR with a committee-report recommendation of $25 million; an aquatic-resources conservation special fund under the Department of Aquatic Resources with a recommended $15 million; a coastal restoration fund (amount and housing to be determined); and a cesspool conversion revolving loan fund to be housed with the Hawaii Green Infrastructure Authority with a recommended $1.5 million. The remaining green-fee revenue would flow into a green-fee special fund in the state treasury for discretionary allocation by the advisory council and agencies.
The committee adopted the chair's recommendation to pass the bill with amendments. Both the Energy & Environmental Protection committee and the House Committee on Tourism recorded "aye" votes with several members excused. Lawmakers noted the changes apply to future collections and would not retroactively affect the recommendations being considered in the current budget cycle.
The bill now moves forward with amendments directing specified portions of future TAT revenue into special funds and with dollar recommendations to be carried in the committee report.
