City tax on short-term lodging and how the money is split

Pursuant to HRS §§ 46-20.7 and 237D-2.5, there is hereby established a 3 percent transient accommodations tax on all gross rental, gross rental proceeds, and fair market rental value that is taxable under HRS Chapter 237D on property in the city, which will be levied and collected by the director of budget and fiscal services; provided that all moneys collected under this chapter must be deposited as follows: (1) Into the general fund as follows: (A) For two years commencing on December 14, 2021, 58.33 percent of all transient accommodations taxes collected pursuant to this chapter; and (B) Beginning two years after December 14, 2021 and thereafter, 41.66 percent of all transient accommodations taxes collected pursuant to this chapter; (2) Into the transit fund as follows: (A) For two years commencing on December 14, 2021, 33.33 percent of all transient accommodations taxes collected pursuant to this chapter; and (B) Beginning two years after December 14, 2021 and thereafter, 50 percent of all transient accommodations taxes collected pursuant to this chapter; and (3) Into a special account in the general fund to be appropriately named by the department of budget and fiscal services, 8.34 percent of all transient accommodations taxes collected pursuant to this chapter; provided that the funds in the special account must: (A) Be used to mitigate the impacts of visitors on public facilities and natural resources, including the restoration, operations, and maintenance of beaches and parks; and (B) Supplement, and not supplant, any funds regularly appropriated for the purposes specified in paragraph (A).