On gross rental or gross rental proceeds derived from the furnishing of transient accommodations at 9.25% rate.

Applicable only to rental of such accommodations for less than 180 days. Gross income does not include taxes collected and passed on under HRS chapters 237 and 237D.

Time share vacation units and plans are subject to the tax.  In this case the tax is 7.25% of the fair market rental value of the unit, but the rate will increase to 8.25% on 1/1/2016 and to 9.25% on 1/1/2017.  Fair market rental value is one-half the gross daily maintenance fees that are paid by the owner, except if either the taxpayer establishes or the Department determines a different value.

Distribution: $1.5 million to the Turtle Bay conservation easement special fund;

$26.5 million to the convention center enterprise special fund;

$82 million to the tourism special fund, with certain provisos as to how this money will be expended;

$103 million to the county governments (distribution of this portion to the counties as follows: 44.1% to the City & County of Honolulu, 22.8% to Maui County, 18.6% to Hawaii County, and 14.5% to Kauai County);

and the balance to the general fund, with certain provisos as to how $3 million of this money will be expended.

SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2016 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.

Last Revised: August 19, 2016

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