Proposed tax law HB 809 has inched closer into taking effect through a hearing by the House Committee on Tourism. The proposed law aims to increase tax on transient accommodation tax imposed onto timeshare units from 7.25 to 9.25 percent. If implemented, the tax increase would stay in effect for a full four years or a bit longer, possible reaching past June in 2015.

Hawaii American Resort Development Association Chair Daniel Dinell, in opposition to HB 809, submitted his testimony stating how the proposed bill may harm Hawaii’s tourism and construction sectors. Dinell also stressed that many of the timeshare owners in the state are property owners staying in Hawaii after committing themselves to life in the state for long terms.

According to Dinell’s testimony, Hawaii’s timeshare owners and their clients are “dependable, consistent and stable” that contribute substantially to tax income in the state despite troubled economic times. In defense of timeshare businesses, Dinell says they pay yearly taxes unlike other owners who do not pay anything for staying in their own property.