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Bill increasing counties’ hotel tax share advances

April 7, 2014 - 7:21pm

State lawmakers are advancing a bill that would raise the share of hotel taxes that go to Hawaii’s counties.

The annual cap on counties’ share is $93 million. They want a return to the 44.8 percent rate they made before the cap was imposed in 2011.

The House passed a bill that would return the state to the earlier hotel tax revenue model. The Senate will vote on the bill but is expected to tinker with the details if it passes.

The Maui News reported that the state’s four counties would make $72 million more in annual revenue under the old model.

House Speaker Joe Souki said the counties are likely to see an increase but that a full return to the old rates might take more time.