2023 Hawaii Revised Statutes › Title 14. Taxation › 237D. Transient Accommodations Tax › 237D-2 Imposition and rates

§237D-2 Imposition and rates
. (a) There is levied and shall be assessed and collected each month a tax of:
(1) Five per cent for the period beginning on January 1, 1987, to June 30, 1994;
(2) Six per cent for the period beginning on July 1, 1994, to December 31, 1998;
(3) 7.25 per cent for the period beginning on January 1, 1999, to June 30, 2009;
(4) 8.25 per cent for the period beginning on July 1, 2009, to June 30, 2010; and
(5) 9.25 per cent for the period beginning on July 1, 2010, and thereafter;
on the gross rental or gross rental proceeds derived from furnishing transient accommodations.
(b) Every transient accommodations broker, travel agency, and tour packager who arranges transient accommodations at noncommissioned negotiated contract rates and every operator or other taxpayer who receives gross rental proceeds shall pay to the State the tax imposed by subsection (a), as provided in this chapter.
(c) There is levied and shall be assessed and collected each month, on the occupant of a resort time share vacation unit, a transient accommodations tax of:
(1) 7.25 per cent on the fair market rental value until December 31, 2015;
(2) 8.25 per cent on the fair market rental value for the period beginning on January 1, 2016, to December 31, 2016; and
(3) 9.25 per cent on the fair market rental value for the period beginning on January 1, 2017, and thereafter.
(d) Every plan manager shall be liable for and pay to the State the transient accommodations tax imposed by subsection (c) as provided in this chapter. Every resort time share vacation plan shall be represented by a plan manager who shall be subject to this chapter.
(e) Notwithstanding the tax rates established in subsections (a)(5) and (c)(3), the tax rates levied, assessed, and collected pursuant to subsections (a) and (c) shall be 10.25 per cent for the period beginning on January 1, 2018, to December 31, 2030; provided that:
(1) The tax revenues levied, assessed, and collected pursuant to this subsection that are in excess of the revenues realized from the levy, assessment, and collection of tax at the 9.25 per cent rate shall be deposited quarterly into the mass transit special fund established under section 248-2.7; and
(2) If a court of competent jurisdiction determines that the amount of county surcharge on state tax revenues deducted and withheld by the State, pursuant to section 248-2.6, violates statutory or constitutional law and, as a result, awards moneys to a county with a population greater than five hundred thousand, then an amount equal to the monetary award shall be deducted and withheld from the tax revenues deposited under paragraph (1) into the mass transit special fund, and those funds shall be a general fund realization of the State.
The remaining tax revenues levied, assessed, and collected at the 9.25 per cent tax rate pursuant to subsections (a) and (c) shall be deposited into the general fund in accordance with section 237D-6.5(b). [L 1986, c 340, pt of §1; am L 1988, c 241, §3; am L Sp 1993, c 7, §18; am L 1998, c 156, §16; am L 2009, c 61, § §1, 4; am L 2011, c 103, §1; am L 2013, c 161, § §1, 3; am L 2015, c 93, §2; am L Sp 2017, c 1, §9; am L 2018, c 211, §3; am L 2021, c 90, §3; am L Sp 2021, c 1, §12]
Note
The 2018 amendment applies to taxable years beginning after December 31, 2018. L 2018, c 211, §6.
Cross References
Rapid transportation authority; annual review, see §23-14; certification statement, see §40-81.5.
Attorney General Opinions
Rental of hotel rooms to airlines for term of 180 days is not taxable. Att. Gen. Op. 90-6.
Case Notes
One per cent increase in transient accommodations tax earmarked for financing expenses associated with convention center development and construction qualified as a "user tax". 78 H. 157, 890 P.2d 1197 (1995).
Online travel companies were not "operators" required to pay transient accommodations tax assessed on the gross rental or gross rental proceeds derived from furnishing transient accommodations and payable by operators; for purposes of the transient accommodations tax, only the hotels are operators. The definition of "operator" does not contemplate or allow for multiple operators when a transient accommodation is furnished. 135 H. 88, 346 P.3d 157 (2015).