Tuesday, January 31, 2012

Vacation Rental Tax Revenues could Increase in Hawaii

HONOLULU (AP) - Tightening regulations on vacation rentals could allow the state to collect up to $35 million more in taxes each year.

A bill before the state House aims at ensuring transient accommodation taxes are paid, even when Hawaii visitors rent their lodgings from out-of-state property owners.

The measure seeks to accomplish this by requiring nonresident owners to work with licensed real estate brokers and salespeople when renting out their homes for short-term stays. 

Those transactions would then be subject to the transient accommodation tax.

Exclusive Getaways President Dan Monck told the House Tourism Committee Monday the bill would allow the state to collect $27 million to $35 million in taxes that currently doesn't make it to the islands.

The Committee deferred action on the bill to work on it further.

1 comment:

  1. Many people have tried to discover where Monck came up with his figures of $27 million to $35 million in unpaid taxes, but there is no supporting documentation. An audit by the Department of Taxation of vacation rentals in 2007 determined that there the owners were tax compliant. His outrageous claim has been promoted and spread around the internet by those who support the new law, but it is baseless and without evidence.

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