More taxes are confirmed for your Hawaii hotel or vacation rental. Prepare for some sticker shock.
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230 thoughts on “Honolulu Latest to Hike New Accommodation Tax: Highest in US”
More taxes are confirmed for your Hawaii hotel or vacation rental. Prepare for some sticker shock.
Get Breaking Hawaii Travel News
Sure glad I’ve been there numerous times, because I won’t be back. Plenty of other places to visit that don’t charge as much and actually welcome tourists.
These taxes are getting ridiculous but the way I look at it is if we “budget” $XXX for a trip and now more of our budget dollars are getting eaten up by taxes well then that’s less $$ for me to spend in restaurants/bars etc but I basically still spend the same amount!! We go to Maui about 3x a year for about 3 weeks, still love it as much as ever but they better be careful because they are going to price themselves out of the market, kind of like Vegas is slowly doing.
Arriving end of next week and just received a bill from the condo owner for the extra 3%. Two less dinners out 🙁
Just received an email from our condo rental in Maui and we’re being charged the newly enacted tax rate because our rental starts on 10/1/21 even though we were fully paid in August.
Haven’t been to Hawaii since 2012 and they’re making it really hard to want to go back.
Update – we Kauai TVR owners just received a broadcast email from the county. Bottom line is that the county is not requiring any additional tax tax returns, they will piggy-back off monthly TAT return sent to the state. However, we will need to submit $$ (on-line only) directly to the county on a portal that is still in progress. So, the 3% “KTAT” applies to all rent declared on the state TAT form (monthly/annual).
Has anyone in state government explained why they’re no longer apportioning the base accommodations rate tax among the islands based on occupancy? It sounds to me as though the state government needs an audit.
It’s because they want the money, and let the counties raise new tax. Do a little on line research. Taxes never high enough. They’re building a 12 billion dollar rail project on an island that has a little over 1 million people. That 12 billion will grease a lot of palms that make political campaign donations.
Besides, it’s a tourist tax. Those are the bast kind everywhere
You would think the mayors of the Islands would try and stop the funneling of the TAT to subsidize a $12 million project that none of the other islands Sharon soon people will be going to Costa Rica and Mexico by passing Hawaii altogether because of nearly a 20% tax on top of their vacation rental cost doesn’t any buddy in this government think about thatu😡😡
What might $62 airfare to Hawaii teach us about the state of Hawaiian tourism?
With the higher taxes you might see visitors staying a shorter time and spending less money
BOH. Thanks as always. We’ve been lucky to travel to direct to Maui from Salt Lake City for the past 18 months. We missed out on the direct flight in late October and have to connect through Honolulu. We’re not familiar with Hawaii Safe Travels protocol checking for connecting passengers. Can’t locate it on the website. Could you please provide any guidance? Thanks.
Hi Fred.
There is nothing required for interisland travel. So your flight to Honolulu will be the one that you need to follow Safe Travels for. Assuming you have a pre-clear bracelet, your travels should be largely the same as pre-Covid.
Aloha.
T.Y. Delta doesn’t do bracelets, so our assumption is getting in line like we would at Kahalui?
Search Delta’s website for Hawaii safe travel. I’m not sure about all of the airports but they are doing it at Atlanta. Even customer service at Delta vacations don’t know about it.
Thanks Starla. Good tip.
Flew Delta out of SLC last week. They were doing bracelets.
I love Hawaii, but the current state of affairs makes me delay. The current state of affairs has caused us to cancel three trips to the islands.
All I can say to the tourists is, “Cabo San Lucas”! It has been great! No hassle and the cost of excursions is much more economical.
We’ve moved our time share to Cabo. Perhaps in a number of years Hawaii will get their act together, but it really does not matter to us any longer. Cabo has been so much more welcoming. I encourange amyone to give it a try.
I agree Cabo is much less expensive more fun and they want tourist.
Does anybody in Hawaii state or county government realize that the higher they raise the accommodations tax (which increases revenue), the more dependent they become on tourism and the need to attract tourists only gets stronger? And if over-tourism is a supposed evil, well, congrats because they just cemented the islands’ fate to it.
Aloha BOH Bro’s
I don’t understand the stink about the new tax when Hawaii’s Governor Ige successfully wiped out all fall travel to the islands.
Small family owned business’s who rely on tourist dollars are in panic mode. Maui Restaurants are posting all over social media “Welcome we are open for dining“
No reservation needed, this posted on several travel sites and Hawaiian Facebook pages by tourist on the islands.
Check out the Hawaiian beach cams they’re empty.
Good government at work let’s raise a tax on tourist than tell them to stay home. Lol 😂
I am currently on Kauai. We went to Breneke’s today for lunch – CLOSED … due to lack of workers. A Heritage Restaurant in Poipou. SAD.
Hi Gloria.
Check Starbucks. The one in Poipu is now closing at 12 noon. Same reason.
Aloha.
Very sad, first went to Brenneke’s in 1987, stayed at the Stouffer Waiohai (Iniki took it out) nice beach, since have been at the Grand Hyatt Poipu, the issue is Governor Ige was taking Federal $ through last week, making it impossible for the people to go back to work, they make more on Unemployment. Democrat’s destroying the Small Business’ that give character to neighborhoods!
So our original trip was Maui April 2020 and we have cancelled for April 2021 and Thanksgiving 2021 due to covid. Due to the govenor asking us not to travel. Now we have to pay higher tax on a rental we paid for in 2020. I do not think so. I would understand it effective in future on rentals. We are traveling there next year. I am so upset right now I may be ready to throw in the towel. You should not have to be filthy rich to travel there!!!
Haven’t been down to Poipu in years (my wife calls it the Orange Co. of Kauai), but the last time we ate at Brennecke’s, the food was mediorce compared with past visits. Maybe was just an outlier.
There is a big time service industry labor shortage all over the island. Most restaurants and even food trucks have curtailed their hours of operation. Lunch tends to get cut first, since not as profitable for owners or servers. The enhanced UE benefits may have played a role, but also the lack of affordable housing for people in those jobs, and (I am told) many people decided to not go back to a service industry job after the initial COVID shut downs and layoffs took place.
Yet another “Hawaii shoots itself in the foot” story. Are you surprised? I’m not…
California has taxed its residents to the point that it has lost population and a seat in the House of Representatives for the first time in its history. My macro (or was it micro?) economics classes taught me there are calculations (math problems) to maximize revenue based on a number of variables. I ended up with a degree in Physics, so I’m probably not qualified to speak about economics, but it feels like the more you take advantage of those you rely upon for your daily livelihood, namely tourism, the more likely you risk losing them.
When every destination in Mexico, the Caribbean and places like the Maldives or Seychelles are more affordable, folks that enjoy the entire experience of those destinations might not return.
Sounds like the Hawaiian government needs to audit the HTA to see exactly where the money is being spent. It should be shared proportionately with all the islands. As a person who spends 3 months each year in Kauai since 2009 some of the taxes and fees are really high.
It sounds as if there needs to be a checkup on HTA. When the CEO makes $300,000 a year, there are 20 employees, with a budget of $1,000,000, yet there are continuing problems with turnover, and other questionable issues going back years, it seems that a thorough investigation and audit is in order.
Those of us with long memories know that when there is a lack of oversight, sometimes mismanagement can occur.
Thank you, BOH, for keeping us informed of developments in Hawai’i.
The new tax problem in and of itself makes sense for the strain travelers put on the system. But it compounds the FEE free for all that makes a $150 my property cost $300+ per night after all of the FEES and now a higher tax on the many dubious fees imposed on top of the rental rate and the new even higher tax. It comes across as dishonest and tells me only the rich need apply.
I say abolish the entire HTA. Who hasn’t heard about the islands of Hawaii and that one can vacation there, yet they’re spending 100M a year on marketing. This is like the current radio and tv ads telling everyone to wash their hands, wear a mask, and social distance wherever possible…really is there anyone on the planet who doesn’t know all this already. Stop wasting all this money!!
This is like the movie “Dave” when he’s trying to save the homeless shelter bill and he ends up cutting the money that is spent making people “feel good about a car they already bought”.
OMG Tom. I was just going to post that!
I think the tax is a mistake. What should be done is have the HTA thoroughly audited and see if the money is being spent responsibly. With such high employee turnover, surely it’s a cry for oversight.
As a long time visitor to Hawaii we do not mind paying more to assist the local governments to address the additional strain on various service and infrastructure we create, and we do (even when we spend money in the local economy) rather than the folks that live on the islands—these taxes have not prevented us from coming almost every year since 2006. An extra $60 for a condo rental that costs $2,000 is not that onerous. And we are retired on a limited budget, but a vacation is a luxury we choose to enjoy.
However, you did not mention whether the new taxes are retroactive, if the accommodations have been paid for in full prior to the stay, or applied to all stays from October 2021 forward. Can you clarify whether we can expect that extra 3% to be applied?
Mahalo
Hi Diana.
We have not heard anything specific about that.
Aloha.
It likely depends on when your “pre-paid” rent is booked as “paid” to the owner/operator of your lodging. If “pre-paid” means booked as rent paid prior to Oct 1, you may end up not being charged the additional 3% county tax, since there will be no rent “paid” on/after Oct 1 on which the tax is levied.
But, if “pre-paid” just means “deposit,” and the rent is not officially booked as paid to the owner/operator until on/after Oct 1, then you should expect to get charged the 3% tax.
FWIW, our TVR operator does not book rent payments until the first day of the rental period, even if she already their rent money in advance (which she nearly always does).
Hi David
Thanks. Not simple and there is no way to tell people what to expect on their reservations without actually inquiring.
Aloha.
Most discouraged with the news of this increase – between requests from the Governor to stay away, and the new burdensome taxes, high cost of flights and fees to get to Hawaii, the tourists are being discouraged to ever return. Many go to Mexico instead, where they are greeted with open arms by the folks of Mexico, that don’t receive subsidies to not work, WANT the business and cater to the tourists. It has been made so difficult to get to Hawaii I fear the folks just won’t return to pay the higher taxes. The islands are beautiful, but you have ruined the atmosphere. The government officials that call out these increased fees, still receive their paychecks/benefits/pensions, but the people of the islands and those that invested in real estate are left shafted. No one needs $100Million marketing campaign – the islands sell themselves if you provide the aloha spirit – something that has been taken from us.
My wife and I have actually have met Hawaii HTA CEO Mr John DeFries on the Big Island of Hawaii. He listened as my wife and I shared our stories of our many trips to the Islands(Good and Bad)before he let us know he was appointed to the position back in April 2020. It was an interesting conversation to hear how he is trying to run an organization where you have Government, Hotel and Lodging interests, Mainlanders, Native Residents and Medical Leaders who all have interests and opinions on how to keep Hawaiis tourism running. That is a lot of people knocking on your door. While I can’t speak to the issues around whether or not the monies being given to the HTA is worthwhile, I do know that Mr. De Fries heart and efforts are in the right place. He is trying to do what is right for Hawaii by addressing the needs of all and maintaining Hawaiis cultural awareness and history. He is the right man for the job and his efforts should be commended.
We have been visiting all the islands since 1984. We have a trip already planned and paid for, to Kauai this year and a trip to Hawaii early next year. Our son happens to be stationed there until the middle of next year. He is the only reason we visit now, and we will never return. Perhaps that sentiment makes locals happy. The islands, as the world in general, have drastically changed over the years. For visitors who are new to the islands, they still have so much of paradise to offer. Unfortunately we find the aloha spirit difficult to find, the crowds hard to navigate, and the price gouging discouraging.
We have been going to Hawaii (Kauai) each year for many years. We contribute to the economy and significantly to various charities for the Hawaiian people we have grown to love and admire. We think this accommodation tax is the wrong path to choose. It just continues to give the sense that you will penalize visitors for the lack of oversight and leadership you yourself should deal with. We are vaccinated and hoping to return in 2022. We have enough obstacles to deal with, why add more, especially if you need the tourist economy?
Aloha BOH Bro’s
An additional new tax isn’t going to slow tourist from coming to Hawaii. Only when there’s an economic down turn probably after the midterm elections will you see tourism slow to the islands.
By the way today I saw a big price drop for fall travel to the islands on Costco Travel. It appears resorts are feeling the cancellation crunch.
With the proposed business, corporate, capital gain, and other tax increases attendant to the 3.5 trillion dollar spending bill now pending before Congress, one must wonder why Hawaii desires to add to those flow-through price increases.
What grips me are the daily resort fees. I’ve given up on Hawaii after 30 years of visiting there. Aloha
What do we do as part-time resisdents and making our home avaiable for vacatian renters the remainder of year??? We have solid bookings thru June of 2022, with signed contracts at the lower rate. Do we just eat the 3%??? this has happened before, We should have some kind of grace period to adjust our rates and contracts.
Be careful what you wish for.. They did say to stop visiting well their wish is going to come true. Even locals were complaining of the tourism that it was destroying Hawaii well soon they will be able to keep Hawaii to themselves again. But they don’t remember how it was before tourism came into Hawaii which provided jobs for locals. It saddens me because over the last 10 years we’ve gone back to the different Hawaii islands regularly. It looks like our recent June trip is going to be one of our last ones to Hawaii for a very long time. I cannot justify spending 1000+ dollars in taxes and fees for a rental. Places that have high lodging taxes I avoid visiting which I know many other people do too. The wonderful things of this world is that there are many gorgeous places to visit when things like this happen it encourages people. Sometimes we get complacent and do the easy thing and return to the paradise we already know. This forces us to explore outside of Hawaii. Yes, Hawaii is paradise but not the only Paradise. I will miss it but I’m excited to be forced out of my comfort zone. It will only get better after 2022 when I’m 2023 international tourism opens up.
We’ve been going 50 years, we met IZ, AND HIS replacements. I’ve been 7 times I think maui, 7 times big island, only 1 kauai (our first attempt was year iniki hit). Probably 35 times Oahu and I still love her, sailed back from her 1998 to sf. I made friends with owners of little Waikiki hotel, helped feral cat groups etc. I don’t want to give up on them. My mom got mad 30 yrs ago when I had diamond head tattood on my ankle, now she’s proud. For maui diehards give Oahu a chance! The smell in the air, and blowing of palm trees is mesmerizing. I’m just sorry my mom can’t go back she’s 88, and I don’t wanna go without her.
Hi guys, I have to agree with everyone that has spoken thus far. It will turn the islands into a ” rich man’s paradise”. Only the wealthy can afford to go there now with the new tax. Once something goes up, it’s hard to reverse it. Sad. Thanks for the update.
Thanks for the update, BOH. Not sure if I missed this in the article… what is GST? Obviously, some type of tax. 😉
Hi Babette.
Hawaii GST (also called GET) somewhat akin to sales tax https://tax.hawaii.gov/geninfo/get/#:~:text=Hawaii%20does%20not%20have%20a,and%204%25%20for%20all%20others.
Aloha.
Americans hate to pay taxes. Hawaii is an expensive place to visit. Everything is more expensive than when I first visited, as an adult, in the seventies. What isn’t?
There are lots of places I cannot visit in the US because I’m not crazy rich. But, my family and I will still visit Hawaii when appropriate because we choose to not because we feel entitled to.
Our home is a vacation rental when we are off island, and is booked solid (including us) through next summer. I suspect not a single one of them will cancel over the tax increase, but we’ll find out.
And, if the consequence of this tax increase is that there are fewer tourists, very few people on Kauai will complain. Even the people who show up and pay all the taxes will be a little better off with less other tourists here at the same time.
Less tourists are good- an attitude that seems prevalent
It is very prevalent. Just send your money, but otherwise stay on the mainland.
Aloha!
So I am paid up 100% for my trip in late October. Will they now charge more?
There will come a time when Hawaii will tax itself out of the tourism market if this continues, especially when hotels are raising prices, trying to recoup money lost due to COVID closures. Visitors will start looking more seriously at other tropical locations that cost less to visit.
Thanks for keeping us up to date.
Definitely an increase in taxes for hotel and resorts accommodation will not motivate tourists like me to visit Hawaii. It is already so expensive the way it is now. They are already charging tourists for everything. A paradise vacation that we are looking for may not be a Paradise after all.
Thank you for the information. This makes my condo rental on Kaua’i even less competitive. TAT and GET makes it close to 20%. At some point vacation folks will look for other places to stay.
I think its absolutely suicide for the county of Kauai, tenants are already paying nearly 15% and now its going to be 18% on a $5,000 room stay that’s an additonal $900. WTH, there will be a time when the vacationers will start to look elsewhere as they already have, to spend their hard earned money, the answer isn’t always taxing the people that put food on our plates, its better management of the existing funds at the county level, that is what we need. Look at the job the Mayor did during the pandemic. Terrible I say. Let me ask everyone, are you better off today than before the pandemic? Ask the Mayor if he gave up 1/2 of his salary. You know he didn’t.
Hawaii is in big trouble, failed Leadership at Governor. Governor Ige trying to overcome shortfalls during his Lock-down, purloined the Sales Tax Revenue from Maui, Kauia, Lanai, the Big Island and placed in the States General Fund, now the roller coaster of Mayor’s who during the Lock-down had the in-employed collecting lucrative State Un-Employment + Federal $300.00, when things got better in late Spring, business could not get people to come back to work, the Bain of all the high unemployment States, NY, NJ, Ct., Pa., Mi., Ill., Wisc., Wa. Ore., Ca. and NM, all over 7%. With Hawaii’s Plan more then $500,000,000.00 upside down, and now the ongoing dog-and-pony show over Masks, Vac’s, has stalled a great rebirth in Tourism, people will choose other locations, Hawaii is great, Paradise, but normal Airfare’s, today’s Car Rental Situation, Limited Dining, will challenge even the largest Hotel Groups, if expectations and diminished Value are there from previous experience. The Japanese are sophisticated travelers now, they’re not back yet, it seems there is a backlash against Mainland folks, given the luxury of big Paychecks and and the reduced traffic that was brought on by the Tourism slowdown from March 2019. Confusion over Masks, there and in transit, talk of Vac’s Mandates and moving away from the “72 Hour Test”, will kill Tourism with this Tax! This January would be my 85 trip to the Islands, all 7-10 days, all Moana, Royal Hawaiian, Hyatt (Kaanapali, Poipu and Waikiki) Ritz Carlton going back to the Stouffer Waiohai and Wailea (later Rennassaince, now Hyatt) in the late 1980’s.
Hi, I enjoy your newsletter and look forward to each one. My husband and I have been coming to Hawaii since 1968. I know, we’re old 😊. We missed our March trip this year and are really looking forward to our 2022 trip. However, it really seems that the elected officials want to put the burden of their poor decisions solely on the faithful tourists. If these taxes go up much more it will certainly cause many to look elsewhere.
Aloha,
Debbie S