Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 237D - TRANSIENT ACCOMMODATIONS TAX › Section 18-237D-3-01 - Exemptions

Current through June, 2024
(a) Exempted from this chapter are the
			 following:
(1) Health care facilities
			 including hospitals, freestanding surgical outpatient facilities, skilled
			 nursing facilities, intermediate care facilities, adult residential care homes,
			 adult foster care homes, special treatment facilities and programs, home health
			 agencies, freestanding birthing facilities, adult day health centers, and
			 independent group residences.
(2)
			 School dormitories of a public or private educational institution providing
			 education in grades kindergarten through twelve, or of any institution of
			 higher education.
(3) Lodging
			 provided by nonprofit corporations or associations for religious, charitable,
			 or educational purposes; provided that this exemption shall apply only to the
			 activities of the religious, charitable, or educational corporation or
			 association as such and not to any rental or gross rental the primary purpose
			 of which is to produce income even if the income is used for or in furtherance
			 of the exempt activities of such religious, charitable, or educational
			 corporation or association.
(4)
			 Living accommodations for persons in the military on permanent duty assignment
			 to Hawaii, including the furnishing of transient accommodations to those
			 military personnel who receive temporary lodging allowances while seeking
			 accommodations in Hawaii or while awaiting reassignment to new duty stations
			 outside the State. This exemption does not apply to transient accommodations
			 provided to persons in the military on permanent duty assignment in the State
			 and who have temporarily departed from their permanent homes and principal
			 establishments elsewhere in this State.
Example.
A captain in the United States Army
				rents a condominium unit in Waikiki for one month while looking for permanent
				housing in Hawaii. The gross income received by the hotel operator is not
				subject to the transient accommodations tax because the captain is seeking
				living accommodations in Hawaii.
(5) Low-income renters receiving rental
			 subsistence from the state or federal governments and whose rental periods are
			 for durations shorter than sixty days.
(6) Operators of transient accommodations who
			 furnish accommodations to full-time students enrolled in an institution
			 offering post-secondary education. This exemption shall also apply to operators
			 who furnish transient accommodations to students during summer
			 employment.
Example.
A pineapple company provides lodging to
				employees who travel to Lanai to work in the pineapple fields. During the
				summer, the pineapple company employs high school and college students to work
				in the fields on Lanai and provides lodging to the students during their period
				of summer employment. Although the lodging provided by the pineapple company is
				for a period of less than 180 days, the pineapple company is not subject to the
				transient accommodations tax for such lodging because operators who furnish
				transient accommodations to students during summer employment are exempt under
				the law.
(7) Accommodations furnished
			 without charge such as, but not limited to, complimentary accommodations,
			 accommodations furnished to contract personnel such as physicians, golf or
			 tennis professionals, swimming and dancing instructors, and other personnel to
			 whom no salary is paid or to employees who receive room and board as part of
			 their salary or compensation.
(8)
			 Accommodations furnished to foreign diplomats and consular officials who are
			 holding cards issued or authorized by the United States Department of State
			 granting them an exemption from state taxes.