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Hawaii Vacation Rental Tax Total Of 33% Proposed 

This controversial bill appears to be discriminatory against legal Hawaii vacation rentals. Read all the details.

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125 thoughts on “Hawaii Vacation Rental Tax Total Of 33% Proposed ”

  1. I started visiting kapalua Maui 20 years ago. Today the short-term rental tax is in excess of the total amount I used to pay? Where is all that tax money going?

  2. As an owner of 2 and a half months of Timeshare in Hawaii I pay a lot of property tax to the state yearly. I hope this bill will cause people to realize timeshare owners have deeds and also pay our fair share of Hawaii property tax. What’s the point of property ownership if we’re considered transient and taxed again. I’m afraid the HI government is going to strangle tourism. Mahalo@

  3. I find this funny. Why stop at 25%. Make it 50% so Hawaii gets big spending tourists instead of cheap ones. Isn’t that what they want?

  4. This is one of the best comments I’ve read on this site. It is an illusion that vacation rentals will turn into “affordable housing”. But, politicians gotta politic, and being economically literate is not a qualification.

  5. Let’s talk unintended consequences of HB820. If these vacation rental homes are no longer short term rentals:
    1. All the jobs like handyman, cleaners, laundry services, etc are now seriously slowed down or out of jobs for locals.
    2. The counties will lose tons in property tax which is one of the few taxes that actually stay in the county. My home is taxed at over 3 times what a homestead rate is. For me to be a licensed vacation rental I must pay the tax rate of a vacation rental and not a second home or homestead. This is an instant reduction of county funds of 1/3. And if you think the new 25% tax will make up for it, think again. Those visitors won’t be coming.
    Higher unemployment and lower tax revenues. Way to go.

    1. This is one of the best comments I’ve read on this site. It is an illusion that vacation rentals will turn into “affordable housing”. But, politicians gotta politic, and being economically literate is not a qualification.

    2. If homes are not short term rentals don’t think wear and tear will suddenly disappear. I doubt very much that your item #1 would happen. As for #2, gee whiz your rental home isn’t taxed at the homestead rate given to the poor and elderly, that’s such a bummer.

  6. This bill must have come from the hotel industry as they are the only group who will benefit from it. Short term vacation rentals are already restricted to the hotel zones and have no impact on the price of residential housing. Legally STVRs have to be treated the same way hotels are treated. Hotels are non-hosted, typically owned by out of state companies and put exactly the same demands on infrastructure. Average residents would never be able to long-term rent a typical $700K one bedroom condo – where the cost to own it is more than $6,000 per month. And the owner would never be able to use it with a long-term renter.

  7. If the goal is to manage tourism in Hawaii, why not go directly to the source and require tourists to apply for visas to come here? Limit the number of visas issued and charge for them to support the program.
    Don’t punish the vacation rental property owners.
    Hawaii is a unique state in that our tourist load can be managed. We’re islands. Tourists can’t drive in.

    1. Susan,
      Hawaii is not (at this time) a separate country. States cannot require someone to have a visa to enter the state from another state. Believe me, folks in Eastern Idaho would Love to limit visitors crossing the state line from Utah (there is an unflattering nickname for them). But, not going to happen.

    2. Susan W the Visa idea won’t work, it’s simply Unconstitutional to require US Citizens to have one to visit another State. Possibly putting restrictions on certain International Tourism might be allowed But I highly doubt that too. My recommendation is for the Hotels to pull rooms off of the market, raising the rate for availability, and causing a shift away from times when Tourism is High, deferring them to book during the low times. It would take all of the Hotels to work together but they seem to be on other things so why not this.

  8. I believe that by my previous comments I have taken the side of STVO’S and will continue to support them. Any taxation must effect Every Property, not just one type of rental or vacation property as BOH has pointed out. I am taken back to County/City Council directly Lying to the public over the benefits to them if STR’S were done away with, why the Lies? What is the Quid Pro Quo between the Politicians and the Resort/Timeshare/Hotel Industry? It should be a RICO Concern! Where’s the DOJ? It’s time to Stop blaming Tourists and Start Blaming the Politicians and Industry that Is Responsible. Think about That! Put the Blame Where It Belongs!

  9. We have vacationed in Hawaii every year for the last 25 plus years for at least a week each year and love our time in the aloha state but honestly it cost us $10,000 this year and if the state of Hawaii continues to increase the tax on visitors we will be forced to go elsewhere for vacation and spend our hard earned money there. Please respond and we will be happy to answer any questions.

    1. Agree, my extended family chose San Diego last March for our 2 week get together. We felt so welcome! Great weather, beaches we felt we could go on and enjoy, palm trees, great food etc. Much shorter and cost effective flight! We are planning San Diego this year for a return trip thinking we will never return to Hawaii. Why go where you are not wanted is our view. Hawaii got what it wanted from our 4 families.

    2. Honestly, go someplace else. The only thing cheap about going to Hawaii is airfare. Hotels are really expensive. Car rentals are outrageous. Food costs a lot as well. You can spend a little more on a flight, for example, Bali, but everything else will be much cheaper. It’s beautiful there. Just one example.

      1. Yes, Hawaii does not have a corner on beauty by a long shot, but we seem to think we do, judging by the attitudes.

    3. You just verbalized what is already happening. Cabo for 2 months or Hawaii for a week? I want to know where all the new tax money is going???

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