Hawaii holidays could get extra dear with new Honolulu lodge tax

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.