HB 2604: Performing Arts Ticket Surcharge; Performing Arts Grants Special Fund

A BILL FOR AN ACT

RELATING TO PERFORMING ARTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the performing arts are vital to Hawaii's cultural identity, visitor experience, and creative economy and that live performances provide meaningful opportunities for community connection, cultural expression, and economic activity across the State.

     The legislature further finds that Act 131, Session Laws of Hawaii 2025, established the performing arts grants program and special fund to support performing arts in the State by providing grants for the coordination, planning, promotion, marketing, and execution of performing arts events.

     The purpose of this Act is to establish a modest performing arts ticket surcharge on certain ticket sales to provide a stable, dedicated source of revenue for the performing arts grants special fund to strengthen and sustain performing arts statewide, expand access to arts education for youth, and support the continued growth and betterment of Hawaii's performing arts community.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-     Performing arts ticket surcharge.  (a)  In addition to the tax imposed by this chapter, a performing arts ticket surcharge of $1 shall be levied and assessed upon the primary sale ticket price for each ticket for admission to a covered event held in the State sold or distributed by a primary venue ticket provider.  The surcharge shall be imposed upon the purchaser of the ticket and shall be collected by the primary venue ticket provider at the time of sale.

     (b)  The primary venue ticket provider shall disclose the surcharge as a separate line item on the ticket, receipt, invoice, or electronic confirmation provided to the purchaser at the time of sale.  All surcharge amounts collected pursuant to this section shall be deemed to be held in trust for the State until remitted to the department.

     (c)  The performing arts ticket surcharge shall not apply to any performing arts event:

     (1)  That is primarily performed by students enrolled at a school in the University of Hawaii system or public school or public charter school;

     (2)  For which the primary sale ticket price is $35 or less; or

     (3)  That is produced by a nonprofit organization that:

          (A)  Is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code; and

          (B)  Has as its primary mission the provision of performing arts education to minors.

     (d)  A primary venue ticket provider claiming that a performing arts ticket it sold or distributed is not subject to the performing arts ticket surcharge, pursuant to subsection (c), shall, in addition to the requirements of section 237-41, keep in the English language within the State, and preserve for a period of three years, suitable records to verify qualification of the exemption under this section, and such other books, records of account, and invoices as may be required by the department, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof.

     (e)  Each primary venue ticket provider shall file periodic returns, at such times and in such manner as prescribed by the department, stating:

     (1)  The number of tickets sold or distributed during the reporting period that are subject to the surcharge;

     (2)  The number of tickets claimed as exempt pursuant to subsection (c); and

     (3)  The total surcharge amount collected during the reporting period.

     The surcharge shall be remitted to the department at the time the return is filed.

     (f)  Except as otherwise provided in this section, the surcharge imposed under this section shall be administered, assessed, collected, and enforced in the same manner as the taxes imposed under this chapter.  All applicable provisions of this chapter relating to the administration of taxes, including penalties and interest, shall apply to the surcharge imposed by this section.

     (g)  All surcharge revenues collected by the department pursuant to this section shall be deposited into the state treasury and credited to the performing arts grants special fund established under section 9-19.5.

     (h)  As used in this section:

     "Covered event" means a performing arts event that is offered for sale to the general public and marketed for commercial entertainment, for which tickets are offered for sale to the general public for an admission charge.

     "Performing arts" has the same meaning as in section 9‑1.

     "Performing arts event" means a live, in-person event held before an audience for entertainment, including a concert, musical performance, theatrical performance, dance performance, comedy show, magic show, spoken word performance, or other staged live entertainment, whether presented indoors or outdoors.

     "Primary venue ticket provider" means an owner or operator of a venue, manager or provider of a performing arts event, performing arts event promoter, online ticketing platform, provider of ticketing services, or agent of the owner, operator, manager, or provider that engages in the primary sale of performing arts event tickets or retains the authority to otherwise distribute performing arts event tickets.

     "Ticket price" means the total amount required to be paid for admission to a covered event, including any required service fee, facility fee, processing fee, or other mandatory charge, but excluding taxes imposed under this chapter and any optional donation.

     "Venue" means a facility, space, or location in the State where a performing arts event is held, whether indoors or outdoors, including an arena, stadium, amphitheater, theater, concert hall, convention facility, hotel ballroom, outdoor performance space, or similar place of public assembly."

     SECTION 3.  Section 9-19.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established in the state treasury the performing arts grants special fund, to be administered by the foundation.  The revenues of the special fund shall consist of:

     (1)  Appropriations made by the legislature;

     (2)  Revenues or moneys derived from the foundation's operations;

     (3)  Surcharge revenues collected by the department of taxation pursuant to section 237-    and deposited into the state treasury to the credit of the fund;

    [(3)] (4)  Grants, gifts, and donations received by the foundation; and

    [(4)] (5)  All interest earned on moneys deposited in the fund.

     The special fund shall be used for the coordination, planning, promotion, marketing, and execution of performing arts events."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Performing Arts Ticket Surcharge; Performing Arts Grants Special Fund

Description:

Establishes a performing arts ticket surcharge on the primary ticket sale price for certain performing arts events held in the State.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO PERFORMING ARTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the performing arts are vital to Hawaii's cultural identity, visitor experience, and creative economy and that live performances provide meaningful opportunities for community connection, cultural expression, and economic activity across the State.

     The legislature further finds that Act 131, Session Laws of Hawaii 2025, established the performing arts grants program and special fund to support performing arts in the State by providing grants for the coordination, planning, promotion, marketing, and execution of performing arts events.

     The purpose of this Act is to establish a modest performing arts ticket surcharge on certain ticket sales to provide a stable, dedicated source of revenue for the performing arts grants special fund to strengthen and sustain performing arts statewide, expand access to arts education for youth, and support the continued growth and betterment of Hawaii's performing arts community.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-     Performing arts ticket surcharge.  (a)  In addition to the tax imposed by this chapter, a performing arts ticket surcharge of $1 shall be levied and assessed upon the primary sale ticket price for each ticket for admission to a covered event held in the State sold or distributed by a primary venue ticket provider.  The primary venue ticket provider shall disclose the surcharge as a separate line item on the ticket, receipt, invoice, or electronic confirmation provided to the purchaser at the time of sale.

     (b)  The performing arts ticket surcharge shall not apply to any performing arts event:

     (1)  That is primarily performed by students enrolled at a school in the University of Hawaii system or public school or public charter school;

     (2)  For which the primary sale ticket price is $35 or less; or

     (3)  That is produced by a nonprofit organization that:

          (A)  Is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code; and

          (B)  Has as its primary mission the provision of performing arts education to minors.

     (c)  A primary venue ticket provider claiming that a performing arts ticket it sold or distributed is not subject to the performing arts ticket surcharge, pursuant to subsection (b), shall, in addition to the requirements of section 237-41, keep in the English language within the State, and preserve for a period of three years, suitable records to verify qualification of the exemption under this section, and such other books, records of account, and invoices as may be required by the department, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof.

     (d)  The surcharge proceeds shall be deposited into the performing arts grants special fund established under section 9‑19.5.

     (e)  As used in this section:

     "Covered event" means a performing arts event that is offered for sale to the general public and marketed for commercial entertainment, for which tickets are offered for sale to the general public for an admission charge.

     "Performing arts" has the same meaning as in section 9‑1.

     "Performing arts event" means a live, in-person event held before an audience for entertainment, including a concert, musical performance, theatrical performance, dance performance, comedy show, magic show, spoken word performance, or other staged live entertainment, whether presented indoors or outdoors.

     "Primary venue ticket provider" means an owner or operator of a venue, manager or provider of a performing arts event, performing arts event promoter, online ticketing platform, provider of ticketing services, or agent of the owner, operator, manager, or provider that engages in the primary sale of performing arts event tickets or retains the authority to otherwise distribute performing arts event tickets.

     "Ticket price" means the total amount required to be paid for admission to a covered event, including any required service fee, facility fee, processing fee, or other mandatory charge, but excluding taxes imposed under this chapter and any optional donation.

     "Venue" means a facility, space, or location in the State where a performing arts event is held, whether indoors or outdoors, including an arena, stadium, amphitheater, theater, concert hall, convention facility, hotel ballroom, outdoor performance space, or similar place of public assembly."

     SECTION 3.  Section 9-19.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is established in the state treasury the performing arts grants special fund, to be administered by the foundation.  The revenues of the special fund shall consist of:

     (1)  Appropriations made by the legislature;

     (2)  Revenues or moneys derived from the foundation's operations;

     (3)  Surcharge proceeds from the performing arts ticket surcharge pursuant to section 237-   ;

    [(3)] (4)  Grants, gifts, and donations received by the foundation; and

    [(4)] (5)  All interest earned on moneys deposited in the fund.

     The special fund shall be used for the coordination, planning, promotion, marketing, and execution of performing arts events."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Performing Arts Ticket Surcharge; Performing Arts Grants Special Fund

Description:

Establishes a performing arts ticket surcharge on the primary ticket sale price for certain performing arts events held in the State.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to performing arts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the performing arts are vital to Hawaii's cultural identity, visitor experience, and creative economy, and that live performances provide meaningful opportunities for community connection, cultural expression, and economic activity across the State.

     The legislature further finds that Act 131, Session Laws of Hawaii 2025, established the performing arts grants program and special fund to support performing arts in the State by providing grants for the coordination, planning, promotion, marketing, and execution of performing arts events.

     The purpose of this Act is to establish a modest performing arts ticket surcharge on certain ticket sales to provide a stable, dedicated source of revenue for the performing arts grants special fund to strengthen and sustain performing arts statewide, expand access to arts education for youth, and support the continued growth and betterment of Hawaii's performing arts community.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-     Performing arts ticket surcharge.  (a)  In addition to the tax imposed by this chapter, a performing arts ticket surcharge of $1 shall be levied and assessed by each primary venue ticket provider on each primary sale of a performing arts ticket for admission to a covered event held in the State.  The performing arts ticket surcharge shall be levied upon the primary venue ticket provider.  The primary venue ticket provider shall disclose the surcharge as a separate line item on the ticket, receipt, invoice, or electronic confirmation provided to the purchaser at the time of sale.

     (b)  This section shall not apply to performing arts ticket sales:

     (1)  From any event that is primarily performed by students enrolled at a school in the University of Hawaii system or public school;

     (2)  For which the primary sale ticket price is $35 or less; or

     (3)  From any event produced by a Hawaii-based nonprofit organization that:

          (A)  Is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code; and

          (B)  Has as its primary mission the provision of performing arts education to minors.

     (c)  A primary venue ticket provider claiming an exemption under subsection (b) shall retain records to verify eligibility for the exemption for two years and shall make the records available to the department of taxation upon request.

     (d)  The surcharge proceeds shall be deposited into the performing arts grants special fund established under section 9‑19.5.

     (e)  As used in this section:

     "Covered event" means a performing arts event that is offered for sale to the general public and marketed for commercial entertainment, for which tickets are offered for sale to the general public for an admission charge.

     "Performing arts" has the same meaning as in section 9‑1.

     "Performing arts event" means a live, in-person event held before an audience for entertainment, including a concert, musical performance, theatrical performance, dance performance, comedy show, magic show, spoken word performance, or other staged live entertainment, whether presented indoors or outdoors.

     "Primary venue ticket provider" means an owner or operator of a venue, a manager or provider of a performing arts event, a performing arts event promoter, an online ticketing platform, a provider of ticketing services, or an agent of the owner, operator, manager, or provider, that engages in the primary sale of performing arts event tickets or retains the authority to otherwise distribute performing arts event tickets.

     "Ticket price" means the total amount required to be paid for admission to a covered event, including any required service fee, facility fee, processing fee, or other mandatory charge, but excluding taxes imposed under this chapter and any optional donation.

     "Venue" means a facility, space, or location in the State where a performing arts event is held, whether indoors or outdoors, including an arena, stadium, amphitheater, theater, concert hall, convention facility, hotel ballroom, outdoor performance space, or similar place of public assembly."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Performing Arts Ticket Surcharge; Performing Arts Grants Special Fund

Description:

Establishes a performing arts ticket surcharge on the sale of certain performing arts tickets for an event held in the State.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1024-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2604

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 2604, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PERFORMING ARTS,"

begs leave to report as follows:

     The purpose of this measure is to establish a Performing Arts Ticket Surcharge on the primary ticket sale price for certain performing arts events held in the State.

     Your Committee received testimony in support of this measure from the State Foundation on Culture and the Arts; Hawaiʻi Arts Alliance; Pacific Academy of Music; and three individuals.  Your Committee received testimony in opposition to this measure from Diamond Head Theatre; Rick Bartalini Presents; and two individuals.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee has amended this measure by:

     (1)  Clarifying that the surcharge shall be imposed on the purchaser of the ticket and collected by the primary venue ticket provider at the time of sale;

     (2)  Adding detailed reporting and recordkeeping obligations for primary venue ticket providers;

     (3)  Clarifying the administrative requirements of the Performing Arts Ticket Surcharge;

     (4)  Specifying that surcharge proceeds are to be held in trust and deposited into the state treasury to the credit of the Performing Arts Grants Special Fund; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2604, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2604, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  245-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2604

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Culture & Arts, to which was referred H.B. No. 2604 entitled:

"A BILL FOR AN ACT RELATING TO PERFORMING ARTS,"

begs leave to report as follows:

     The purpose of this measure is to establish a performing arts ticket surcharge on the sale of certain performing arts tickets, with revenues to be deposited into the Performing Arts Grants Special Fund.

     Your Committee received testimony in support of this measure from the State Foundation on Culture and the Arts.  Your Committee received testimony in opposition to this measure from the Hawaii Theatre Center and one individual.  Your Committee received comments on this measure from the Department of the Attorney General; Department of Taxation; and Tax Foundation of Hawaii.

     Your Committee finds that Hawaii's performing arts sector plays a vital role in fostering cultural expression, enhancing the visitor experience, and supporting economic activity throughout the islands.  Although a Performing Arts Grants Program and Special Fund were established in 2025 to provide essential support for performances and events, long-term sustainability depends on a reliable funding mechanism.  This measure creates a surcharge on certain ticket sales for commercial performing arts events, with proceeds dedicated to the Performing Arts Grants Special Fund, ensuring continued growth and resilience of the State's performing arts community.

     Your Committee has amended this measure by:

     (1)  Clarifying that events performed by students enrolled at public charter schools are also not subject to the performing arts ticket surcharge;

     (2)  Removing the reference to "Hawaii-based" regarding nonprofit organizations;

     (3)  Clarifying the recordkeeping requirements to align with existing law;

     (4)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee notes the concerns of the Department of Taxation regarding the administrative difficulties of the allocation of surcharge revenue to the Performing Arts Grants Special Fund proposed by this measure and their request for an appropriation of a set dollar amount equivalent to the estimated surcharge revenue, although that estimate has not yet been determined.  Your Committee further notes the Department of Taxation's recommendation for an effective date of January 1, 2027, to allow for form, instruction, and system changes.

     As affirmed by the record of votes of the members of your Committee on Culture & Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2604, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2604, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Culture & Arts,