Lawmakers move forward with 9.25% hotel tax - Hawaii News Now - KGMB and KHNL

Lawmakers move forward with 9.25% hotel tax

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HONOLULU (AP) - Hawaii lawmakers are moving forward a plan to make an increase in the hotel room tax rate permanent.

The 9.25% rate was set to expire in 2015.

The Honolulu Star-Advertiser says proposals on Senate Bill 1194 included allowing the 9.25% rate to expire as scheduled or raising it 2 percentage points.

The House favored resetting the rate immediately to the 2011 level of 7.25%.

The agreement comes after conference committee negotiations Wednesday. It still requires full approval of the House and Senate.

The plan includes $82 million in room tax revenue allocated to the Hawaii Tourism Authority. It also maintains a cap of $93 million on revenue set aside to be divided among counties.

Gov. Neil Abercrombie was among those lobbying for the permanent rate.

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