Announcement No. 2021-01 - Laserfiche WebLink

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COUNTY OF HAWAI'I TRANSIENT ACCOMMODATIONS TAX ANNOUNCEMENT NO.2021-01 December 10, 2021 RE: New Hawai'i County Transient Accommodations Tax Starting January 1, 2022 The purpose of this Announcement is to notify the public of the new Hawaii County Transient Accommodations Tax (HCTAT) and provide information for taxpayers subject to the HCTAT. Background Act 1, 1st Special Session 2021 (House Bill 862, H.D. 2, S.D. 2, C.D. 1), which became law on July 8, 2021, authorizes the counties to establish and administer their own transient accommodations tax (TAT) at a maximum rate of 3 percent. In order to establish the county TAT, the county must first adopt a local ordinance. The Director of Finance in each county that establishes a county TAT is granted the same authority that the Director of Taxation has under chapter 237D, Hawaii Revised Statutes (HRS). The Hawaii County Council introduced a bill to amend Chapter 2, Hawai'i County Code (HCC), which implements the HCTAT. The first Finance Committee meeting to discuss Bill 81 (HCTAT) was held on October 19, 2021, and postponed to a subsequent meeting. On November 3, 2021, the Finance Committee amended Bill 81 to Draft 2 and recommended its passage on first reading by the Hawaii County Council. Bill 81, Draft 2, passed first reading on November 18, 2021. On December 8, 2021, Bill 81, Draft 2, passed second and final reading, without further amendments. On December 10, 2021, Ordinance No. 21-89, Bill No. 81 (2021), Draft 2, was signed into law by Mayor Mitchell D. Roth. Imposition of Hawai'i County Transient Accommodations Tax (HCTAT) Beginning January 1, 2022, the HCTAT is levied at a rate of 3 percent' on every taxpayer that has taxable gross rental proceeds and/or total fair market rental value attributable to the County of Hawai'i. The HCTAT is imposed in addition to the State Transient Accommodations Tax (State TAT), which is currently levied at a rate of 10.25 percent.4 These amounts can be found on Forms TA-1 and TA-2 which must be filed with the State of Hawai'i Department of Taxation (DOTAX). Registration Under Hawai'i County Code section 2 all operators, timeshare plan managers, transient accommodations brokers, travel agents, and tour packages subject to the HCTAT must have a State transient accommodations tax license issued pursuant to sections 237D-4 or 237D-4.5, HRS. Taxpayers who are registered with the State and have a valid State TAT number, will be deemed registered for HCTAT. Taxpayer subject to the HCTAT do not need to register separately with the County of Hawai'i. Hawai'i County Code § § 2. 2 State of Hawaii, Department of Taxation - Form TA-1/TA-2, Line 3, column C. ' State of Hawaii, Department of Taxation - Fonn TA-1/TA-2, Line 7. 4 Hawaii Revised Statutes (HRS) §237D-2.