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Hawaii vacations may get more expensive with new Honolulu hotel tax

enpassant by enpassant
December 16, 2021
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Tourists and locals watch the sunset near a statue of legendary Hawaiian surfer Duke Kahanamoku in Honolulu's Waikiki neighborhood in this file photo from August 2018.

HONOLULU — Honolulu has become the latest Hawaii county to adopt its own hotel tax after Mayor Rick Blangiardi signed legislation adding a 3% surcharge to the state’s levy on short-term rentals.

Officials estimate the new tax, paid for by guests staying at accommodations such as hotels and Airbnbs, could generate about $86 million a year for Oahu, the Honolulu Star-Advertiser reported.

The surcharge will be imposed on top of the state’s 10.25% tax on gross rental proceeds from hotels, vacation rentals, timeshares and other transient accommodations. 

Honolulu plans to allocate 58% of the tax’s revenue to the general fund, about 33% to rail and about 8% to a special fund for natural resources.

Kauai, Maui and Hawaii counties have already adopted the surcharge.

►Don’t make these Hawaii travel mistakes:Wrong COVID-19 tests, missing vaccine info and wristband envy

►You’re already paying resort fees:These hotels offer you a bang for your buck

The counties acted after the state Legislature this year stopped a sharing portion of the state tax with them. The counties used to collectively receive about $130 million of the state’s transient accommodations tax revenue annually. Honolulu County received 44%, or about $45 million, of the total.

The measure passed by lawmakers allows counties to recoup funds by implementing their own tax.

The Honolulu City Council passed the bill in a 6-3 vote earlier this month. Council members Heidi Tsuneyoshi, Augie Tulba and Carol Fukunaga voted against it because it allocated funds to the city’s rail project.

►’We get cussed at every day’:Maui tourist surge raises tensions, renews calls for visitor limits, new fees

►Get used to it:Hawaii’s COVID-19 travel rules could stay in place into next year



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