HONOLULU — Honolulu has come to be the most popular Hawaii county to undertake its very personal lodge tax following Mayor Rick Blangiardi signed laws incorporating a 3% surcharge to the state’s levy on shorter-phrase leases.
Officers estimate the brand new tax, paid for by firm remaining at lodging this sort of as resorts and Airbnbs, might create about $86 million a yr for Oahu, the Honolulu Star-Advertiser reported.
The surcharge can be imposed on main of the state’s 10.25% tax on gross rental proceeds from motels, getaway leases, timeshares and different transient lodging.
Honolulu choices to allocate 58% of the tax’s income to the widespread fund, about 33% to rail and about 8% to a singular fund for pure means.
Kauai, Maui and Hawaii counties have by now adopted the surcharge.
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The counties acted quickly after the purpose out Legislature this 12 months stopped a sharing a part of the purpose out tax with them. The counties utilized to collectively obtain about $130 million of the state’s transient lodging tax earnings yearly. Honolulu County acquired 44%, or about $45 million, of the complete.
The measure handed by lawmakers will permit counties to recoup assets by using their private tax.
The Honolulu City Council handed the month-to-month invoice in a 6-3 vote earlier than this month. Council customers Heidi Tsuneyoshi, Augie Tulba and Carol Fukunaga voted in opposition to it because it allotted assets to town’s rail endeavor.
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