![]() However, it is the sole responbility of each host to have a GE License Tax No and a State Accommodation Tax ID as well in order to pay your fair share of the taxes for this income through Airbnb. Its important to understand that the State of Hawaii and the City of Honolulu zoning laws do not agree with each other on the legality of Airbnb. Both bills are advancing but this is in no way a loophole to not pay the tax yourself at the State Tax office on Punchbowl Street or mailing it in with the appropriate tax form reporting your quarterly income. However, the bill has only passed in the House. There is some information about Bill 2693 and House Bill 1850 being voted on which would allow Airbnb to legally collect this necessary 9,25% tax which is of course supported by the Department of Taxation for Hawaii. Myself, I called Airbnb to speak with a Manager to get clarification on this tax issue since we all want be right with Uncle Sam.hahaĬheck out Mondays article dated Maof Star Advertiser which you can also find online. Several hosts are still collecting that from their guests in their nightly rate or collected in person as stated in their profile. I can share with you that Expedia recently was sued and judgement was granted for $330 million dollars for all the tax they collected from their customers but never turned that tax money over to the State. However, it was certainly a way for Airbnb to show the state that they could collect a tax, and be upfront about it with their records. Which is in no way equal to the 9.25% Hawaii Accommodation Tax that is calculated/collected by each hotel and bed/breakfast home. Yes, Airbnb is collecting a tax from each guest who books with a Hawaii host which is listed in their detailed pricing summary in the confirmed booking email, but its only being collected as $1. Owners and/or operators of properties used for transient accommodations purposes should familiarize themselves with the transient accommodations tax procedures of the county the property is located in and anticipate an increase in the expense of furnishing their transient accommodations.Aloha my fellow Kama'aina. The taxable value of all contracts entered into on or after the adoption of the applicable ordinance is subject to the county TAT, regardless of whether the contract allows for the passing on of any tax or any tax increase.The taxable value of written contracts entered into before the adoption of the relevant ordinance, which do not require the passing on of increased rates of taxes, if received beginning in the taxable year in which the applicable county TAT becomes effective, is not subject to the county TAT.Passing on of County Transient Accommodations Taxes in ContractsĬounty transient accommodations taxes are levied on the taxable value of all written contracts that require the passing on of a TAT imposed under Chapter 237D. The TAT is levied as of December 14, 2021. City and County of Honolulu: Bill 40, CD2, FD1 was enacted as Ordinance 21-33. ![]() The TAT will be levied beginning on January 1, 2022. County of Hawai'i: Bill 81, Draft 2 was enacted as Ordinance 21-89.The TAT is levied as of November 1, 2021. 101, Draft 1 was enacted as Ordinance No. County of Kaua'i: Bill 2829, Draft 1 was enacted as Ordinance 1099 (the ordinance can be found on the Kaua'i County Code "CodeAlert" page).The following ordinances implemented each county's TAT: In the administration of a county TAT, each county's applicable director of finance has all the rights and powers of the State of Hawaii's Director of Taxation, which powers are set forth in Chapter 237D of the Hawaii Revised Statutes (" Chapter 237D"). Every operator, plan manager, and every transient accommodations broker, travel agency, and tour packager who arranges transient accommodations and is subject to the State TAT, is or will also be required to pay the county TAT to the county in which the property is located. Act 1 also enabled the counties to, by ordinance, adopt their own transient accommodations taxes at a maximum rate of 3%.Īccordingly, all four counties have adopted ordinances establishing transient accommodations taxes at a rate of 3% of all taxable value. 1) (" Act 1"), which terminated the TAT allocation to the counties on July 1, 2021. In the First Special Session of 2021, the Hawaii State Legislature enacted Act 1, 1st Special Session 2021 (House Bill 862, H.D. The State TAT is levied at a rate of 10.25% on all gross rental, gross rental proceeds, and fair market rental value derived from furnishing transient accommodations (collectively, "taxable value"). Since 1986, the State of Hawaii has allocated a portion of its TAT revenues to the counties. On December 14th, the City and County of Honolulu became the last of the four counties to implement a county transient accommodations tax ("TAT"). ![]() New County Transient Accommodations Taxes
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