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PriorityMeasureSubjectMeasure TitleDescriptionNext HearingAnalysisTalking PointsStatusReferralNoted OppositionIntroducer(s)
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SB1396 SD3 HD3 CD2
Climate Mitigation and Resiliency Special Fund; Economic Development and Revitalization Special Fund; Transient Accommodations Tax; Department of Defense; Department of Business, Economic Development, and Tourism; AppropriationRELATING TO ECONOMIC DEVELOPMENT.HD1: Amends the transient accommodations tax rate beginning on 1/1/2027. Assesses the Transient Accommodations Tax on cruise ship cabins based on the total time the cruise ship is docked at any port in the State. Appropriates funds to DLNR for protection, management, and restoration of the State's natural resources as well as for environmental stewardship, climate and hazard mitigation, and sustainable tourism. Effective 7/1/3000. (HD2)Summary and Issues:
HD2: Add cruise ships to TA definition, delete the $20/nt fee in its entirety, Governor recommendation of 1% TAT increase accross the board.

3/13/25 Gut and replace with HB504 HD1

The Hawaii 2025 Senate Bill 1396 SD3 proposes an increase in the Transient Accommodations Tax (TAT), but the exact percentage increase is not explicitly stated in the bill text. Instead, we can estimate the percentage increase by considering the following details:
1. Proposed Budget Allocation from TAT Revenue
• The bill mandates a budget request from the general fund to be equivalent to a percentage of TAT revenue for climate change and tourism-related projects.
• It also creates a special fund for climate mitigation efforts with an initial $50 million appropriation from general revenues.
2. Governor's Proposed TAT Increase
• Governor Josh Green originally proposed a 1.7% increase in the TAT but later reduced it to 1.0% as a compromise.
• The additional tax would generate $5 to $8 per night for hotel guests, assuming an average room rate.
• The tourism industry is concerned that the tax could deter visitors, but Green argues it is a small price to pay for climate resilience.
3. Estimating the Percentage Increase
Hawaii's current TAT is 10.25%, with an additional county surcharge of up to 3%, making the effective rate 13.25% in some areas.
• If SB1396 SD3 adopts a 1% increase, the new statewide TAT would be 11.25% (or up to 14.25% with county surcharges).
• If the original 1.7% proposal had been kept, the statewide TAT would rise to 11.95% (or up to 14.95% in counties with full surcharges).
4. Impact on Total Revenue
• The TAT generates significant revenue for the state, often exceeding $600 million per year.
• A 1% increase could generate an additional $60 million annually, based on rough estimates from past TAT collections.
• The bill does not directly state the percentage, but based on the Governor's statements, the planned increase aligns with his 1% proposal.
Final Conversion to Percentage
If we use the $50 million appropriation as a reference:
• Assuming a baseline TAT revenue of ~$600 million, a $50 million allocation would approximate an 8.3% increase in total TAT revenue collection.
• However, this does not mean an 8.3% tax rate increase—it just reflects how much more revenue will be allocated.
• The actual tax rate increase proposed (per Governor Green's statements) is 1.0%.
Conclusion
SB1396 SD3 does not specify an exact tax rate increase, but based on Governor Green's proposals and the revenue estimates, it is likely a 1% increase in the TAT, raising it from 10.25% to 11.25% statewide (or up to 14.25% in some counties).

Floor Amendment to clarify definitions -
Governor's Package:
(1) Clarifying that the Adjutant General shall adopt administrative rules on the imposition and collection of fees;
(2) Deleting language that would have required 7.3 percent of total revenue collected by the Transient Accommodations Tax to be allocated to the Economic Development and Revitalization Special Fund;
(3) Amending section 1 to reflect its amended purposes;
(4) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.		Key Concerns and Arguments against SB1396
1. The Hotel Tax Increase is Unnecessary and Burdens Both Tourists and Residents
 Hawaii already has one of the highest hotel taxes in the country. The current Transient Accommodations Tax (TAT) is 10.25%, with county surcharges raising it to as high as 13.25%. Increasing this tax further to 11.25% (or more) will hurt Hawaii’s tourism industry—one of the state’s largest economic drivers.
Tourists are already paying multiple fees. Visitors are subject to resort fees, high airfare costs, rental car fees, and the general high cost of goods and services in Hawaii.
This tax also impacts residents. Kamaʻāina who stay in local hotels or vacation rentals for staycations, work, or emergency housing situations will also have to pay more.
Other states have successfully funded climate initiatives without raising hotel taxes. Hawaii should look for alternative funding sources instead of increasing costs for residents and visitors.
2. The Proposal is Open-Ended and Lacks Transparency
 The bill does not specify a fixed tax increase. The final amount could change after the public comment period and be set arbitrarily by legislators based on budget negotiations.
This leaves taxpayers with no certainty about the actual cost. The bill simply requires that the governor request a budget amount tied to a percentage of the TAT, but it does not cap this amount.
Residents and businesses deserve to know exactly how much the tax will be before it is passed. This lack of transparency undermines public trust.
3. The Tax Revenue Isn’t Guaranteed to Solve Climate Change or Wildfire Risks
 The bill claims to fund climate and wildfire mitigation, but there is no guarantee the money will be used effectively. Past state funds meant for climate resilience have been diverted or poorly managed.
There is no clear connection between hotel tax revenue and solving wildfires or climate change. The Transient Accommodations Tax (TAT) was originally designed to support tourism infrastructure and marketing, not climate initiatives.
Hawaii already receives federal and state funding for climate mitigation. The state should prioritize using existing resources more efficiently before imposing additional taxes.
4. Hawaii's Economy is Already Struggling – Now is Not the Time for Higher Taxes
Hawaii’s cost of living is among the highest in the nation. Additional taxes on tourism will hurt the hospitality industry, leading to higher costs for local businesses and potentially fewer jobs.
Hawaii’s tourism recovery is still fragile post-pandemic. Raising hotel taxes now could discourage visitors, reducing overall revenue and hurting the very industries the state relies on.
Rather than raising taxes, the state should focus on better financial management. Hawaii has a history of inefficiency in government spending—raising more money isn’t the solution; accountability is.
Conclusion: Demand a More Transparent, Fair Approach
Ask legislators to reject Senate Bill 1396 SD3 unless a specific, reasonable tax amount is clearly defined in the bill.
Urge the state to find alternative funding sources for climate initiatives that do not place an unfair burden on tourists and residents.
Demand clear oversight and guarantees that funds will actually be used for wildfire prevention and climate resilience, not diverted elsewhere.
Emphasize the need to protect Hawaii’s economy by keeping tourism affordable and competitive.
(H ) 3/31/2025 - Bill scheduled to be heard by FIN on Wednesday, 04-02-25 3:30PM in House conference room 308 VIA VIDEOCONFERENCE.
(H ) 3/21/2025 - Report adopted; referred to the committee(s) on FIN as amended in HD 2 with Representative(s) Alcos, Matsumoto, Reyes Oda, Shimizu voting aye with reservations; Representative(s) Garcia, Muraoka voting no (2) and Representative(s) Cochran, Garrett, Kapela, Kitagawa, Ward excused (5).
(H ) 3/14/2025 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on TOU/WAL with Representative(s) Matsumoto, Reyes Oda voting aye with reservations; Representative(s) Alcos, Garcia, Muraoka, Pierick, Shimizu voting no (5) and Representative(s) Cochran, Holt, Iwamoto, Ward excused (4).
(H ) 3/10/2025 - Bill scheduled to be heard by EEP on Thursday, 03-13-25 9:45AM in House conference room 325 VIA VIDEOCONFERENCE.
(S ) 2/27/2025 - The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Kanuha, Kidani, Lee, C., Fevella; Aye(s) with reservations: Senator(s) Inouye, Kim, Wakai ; 0 No(es): none; and 0 Excused: none.
(S ) 2/21/2025 - The committee(s) on WAM will hold a public decision making on 02-27-25 10:30AM; Conference Room 211 & Videoconference.
(S ) 2/14/2025 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
(S ) 2/14/2025 - Reported from EDT/AEN (Stand. Com. Rep. No. 662) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
(S ) 2/10/2025 - The committee(s) on EDT/AEN has scheduled a public hearing on 02-13-25 1:02PM; Conference Room 229 & Videoconference.
1/27/2025 - Referred to EDT/AEN, WAM.
1/23/2025: Introduced and passed First Reading.		(H) EEP, TOU/WAL, FIN
(S) EDT/AEN, WAM		KOUCHI (Introduced by request of another party)
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HB111Prostitution; Sexual Exploitation; Sex Trafficking; Civil ClaimsRELATING TO SEX TRAFFICKING.Authorizes civil claims to be made against a person, business, business owner, or business operator that profits from sexual exploitation or sex trafficking. Extends the statute of limitations for civil claims related to sexual exploitation or sex trafficking to ten years.Summary:
This bill aims to combat sexual exploitation and sex trafficking by authorizing civil claims against individuals or entities that profit from such activities and extending the statute of limitations for related civil claims to ten years.
While the bill's intent is to support survivors, its broad language could inadvertently expose landlords and short-term rental owners to liability for actions conducted by their guests without the owners' knowledge. The bill allows civil claims against any "person, business, business owner, or business operator" that profits from sexual exploitation or sex trafficking.
Given this wording, if a guest engages in illicit activities on a rental property, the property owner might face legal action, even if unaware of the misconduct. This potential liability arises from the owner's financial gain through rental income, which could be construed as "profiting" from the premises where unlawful activities occurred.
Key Concerns:
Specifically defines "Business" as "includes a transient accommodation or any other commercial activity."
Imposes 3rd party liability based on what happens behind closed doors and in private homes. How is a landlord to know what a tenant is doing?
Signed by Governor - Act 20
Sent to Governor for signature
(S ) 3/25/2025 - The committee(s) on JDC recommend(s) that the measure be PASSED, UNAMENDED. The votes in JDC were as follows: 3 Aye(s): Senator(s) Rhoads, Chang, San Buenaventura; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Gabbard, Awa.
(S ) 3/18/2025 - The committee(s) on JDC deferred the measure until 03-25-25 10:00AM; Conference Room 016 & Videoconference.
(S ) 3/7/2025 - The committee(s) on JDC has scheduled a public hearing on 03-11-25 9:45AM; Conference Room 016 & Videoconference.
(H ) 2/28/2025 - Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4). Transmitted to Senate.
(H ) 2/27/2025 - Reported from JHA (Stand. Com. Rep. No. 798), recommending passage on Second Reading and placement on the calendar for Third Reading.
(H ) 2/25/2025 - The committee on JHA recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 7 Ayes: Representative(s) Tarnas, Poepoe, Belatti, Hashem, Perruso, Takayama, Todd; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Cochran, Kahaloa, Garcia, Shimizu.
H 1/21/2025: Referred to JHA		(S) JDC
(H) JHA		ICHIYAMA
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Enrolled to Governor
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Signed by Governor
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