The Transient Accommodations Tax
Hawaii remains world-class for the vacation-seeking public, especially after the COVID lockdowns of 2020. Interestingly, we have observed the most significant influx of east coast and midwest visitors to the resorts we remember in the last 20 years. These visitors, combined with the typical west coast tourists, are causing 90% occupancies, packed restaurants, and the usual island activities like helicopter and boat tours.
The Transient Accommodations Tax scheme, which funds the general State budget, is changing for those of you who own Vacation Rental Properties here in Hawaii. Hawaii state lawmakers passed HB 862 CD1 which would divert to the State government's general fund (GF) $103 million from the State's transient accommodation tax collections (TAT) that otherwise would have gone to the counties. The tax is 10.25% charged and collected for all vacation rental accommodations six months or less, including Hotels and Short Term Vacation Rentals. Instead, the State will keep 100% of the tax collected and allow each County to c...



