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Mayor Blangiardi statement regarding HB 862, TAT bill

HONOLULU -- The original intent of the Transient Accommodations Tax (TAT) was to help the counties fund visitor-related expenditures, including police and fire protection, lifeguard services, facility and infrastructure maintenance and debt service for parks, beaches, roads, sewage systems.

Prior to the pandemic, the City and County of Honolulu (City) received approximately $45M annually as part of a state TAT allocation to all counties in the sum of $103M. Due to the pandemic, the City has been operating without TAT revenue for the entirety of FY21.

During the 2021 Legislative session, the House and Senate passed out HB 862 which permanently removes the allocation of TAT to the counties. Instead, the bill authorizes the counties to administer, collect and enforce their own levy of TAT at a maximum tax rate of 3%.

"As Mayor, it is my responsibility to make sure the City has the financial resources necessary to maintain core City services and provide for the needs of residents and visitors alike," said Mayor Rick Blangiardi. "I support HB 862 as it provides the City the option of restoring a revenue base which has been lost -- allowing us to continue services to our people."

For additional information on HB862 please visit: https://www.capitol.hawaii.gov/session2021/bills/HB862_CD1_.htm

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