On gross rental or gross rental proceeds derived from the furnishing of transient accommodations at 10.25% rate.  The tax is normally imposed on the operator of the accommodations but may also be imposed on transient accommodations brokers, tour agencies, or tour packagers.  Note that as of July 1, 2021, the State keeps all of the money and the various counties are authorized to impose a county surcharge of up to 3 percentage points.

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 also subject to 10.25% tax.  In this case the tax is on the fair market rental value of the unit.  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;

$11 million to the convention center enterprise special fund;

An allocation to the tourism emergency special fund sufficient to maintain a fund balance of $5 million;

$3 million to the special land and development special fund; and

the balance to the general fund.

SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2021 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.

Last Revised: August 18, 2021

Print Friendly, PDF & Email