#Hawaii transient accommodations tax registration#
#Hawaii transient accommodations tax code#

The timing of payments will coincide with the State. For quarter- ly filers, the first deadline covering the period Novemthrough December 31, 2021, will be due on January 20, 2022. Since the effective date is November 1, 2021, those who pay the State TAT on a monthly basis will also need to remit their first payment to the County on or before December 20, 2021. The effective date for the MCTAT is November 1, 2021. This also applies to every transient accommodation broker, travel agency, and tour packager who arranges transient accommodations at non-commissioned negotiated contract rates.

#Hawaii transient accommodations tax registration#

All operators, plan managers, transient accommodations brokers, travel agencies, or tour packagers within the County must hold State registration in accordance with Sections 237D-4 and 4.5, HRS. The general rule of thumb is if you pay the State TAT, you will need to pay the County. 101 (2021), Draft 1 establishing a rate of 3 percent on all gross rental, gross rental proceeds, and fair market rental value considered taxable under the definitions of Section 237D-1, Hawai`i Revised Statutes (HRS). On October 1, 2021, Maui County Council passed Ordinance No.

#Hawaii transient accommodations tax code#

The TAT on all other islands is currently at 13.41%.What is the County Transient Accommodations Tax?Īct 1, in lieu of the counties receiving a distribution from the State, provides authority for a County-wide Transient Accommodations Tax within the Maui County Code which implements the MCTAT. And remember, this room tax rate of 13.962% (current) is unique to only Oahu. But $17 could buy you, you know, another Mai Tai at the hotel bar. $17 more per week isn’t going to cause potential visitors to change their plans. Okay, so this increase really won’t make a difference for visitors. So over the course of a week, that’s nearly a $17 extra in room taxes. Which means at that (admittedly low) nightly rate of $272.60, you’d end up spending an additional $2.73 per night on taxes once the bill goes into effect. But when the bill passes, that same rate would incur a room tax of $81.34. And at today’s rate, my room tax is $75.89. For example, my recent two-night stay at the Laylow Waikiki coast me $545.20 before tax. What the Hawaii Transient Accommodation Tax Increase Means for YouĪ 1% increase in the TAT doesn’t seem like a lot, but a little can add up quickly. This means transient accommodations on Oahu are subject to a total room tax rate 13.962%. But as anyone that’s stayed in a hotel in Hawaii knows, the overall room tax includes the General Excise Tax too. And if the bill survives all of its votes, then we’ll see a 1% rise in the Transient Accommodation Tax from 9.25% to 10.25% for 13 years. In fact, today is the final read through at the Senate, and it is widely expected that the bill will pass. Hyatt Centric WaikikiĪs I said earlier, the Hawaii State Legislature is in a special session to debate and vote on this plan. And the option that looks like it will pass is the Hawaii State Legislature’s proposal to extend the General Excise Tax surcharge by a few more years, and to increase the Transient Accommodation Tax. To remedy this, the City & County of Honolulu, the Hawaii State Legislature, and the FTA have been discussing a few options. But due to delays and cost overruns, the project is currently experiencing a funding shortfall.

So when you’re on Oahu, the general excise tax is 4.712%, while the rest of the state is at 4.16%. To pay for the system, the State Legislature passed a bill allowing individual counties to raise the general excise tax 0.552%. This, of course, is barring any further delays to the project. Then, the rest of the line to Ala Moana Center will open in 2025.

The first phase, which will connect East Kapolei and the Aloha Stadium, will begin service 2020. And currently, the rail system is planned to open in two phases. The route will have twenty-one stations including one at the Daniel K. PC: Wikimedia CommonsĪs planned, the elevated rail line will run 22-miles from East Kapolei to Ala Moana Center near Waikiki. And in 2012 construction began on the then estimated $5.3 billion the most expensive public works project in Hawaii’s history. However, in the past decade, the issue’s importance grew so much that it became a deciding factor in elections. And at the heart of this bailout plan is an increase in Hawaii’s transient accommodation tax.ĭevelopment of a fixed-rail system has long been a topic of Hawaii politics. The Hawaii Legislature convened a special session earlier this week to discuss a bailout plan for Honolulu’s massively over budget rail transit project. And the main topic is a Hawaii transient accommodation tax increase. A special session of the Hawaii Legislature is underway.