BIG ISLAND

VACATION RENTAL ASSOCIATION

Transiet Tax (TA) Going Up 3% Starting January 1st, 2022

December 11, 2021 1:35 PM | Holly Cunningham (Administrator)

Transient Accommodations Tax (TAT)


ANNOUNCEMENT NO. 2021-01
December 9, 2021

Hawai'i County Transient Accommodations Tax (HCTAT)
Effective January 1, 2022

The purpose of this Announcement is to notify the public of the HCTAT
 and to 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 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 State Director of Taxation has under chapter 237D, Hawaii Revised Statutes (HRS).

The Hawai'i 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 Hawai'i 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 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 TAT, which is currently levied at a rate of 10.25 percent. These amounts can be found on Forms TA-1 and TA-2 which must be filed with the State of Hawaii Department of Taxation (DOTAX).  CLICK HERE for a sample Form TA-1, the periodic return for taxable gross rental proceeds and total fair market rental value of timeshares. 

Registration
Chapter 2.x-x, HCC, provides that all operators, timeshare plan managers, transient accommodations brokers, travel agents, and tour packages subject to the HCTAT must have a State TAT 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.  Taxpayers subject to the HCTAT do not need to register separately with the County of Hawai'i.

Tax Returns
Under Section 2-x.x and 2-x.x, HCC, the County Director of Finance has the authority to prescribe how periodic and annual County TAT returns are filed. The County Director of Finance has determined that State TAT returns filed with DOTAX will also be deemed to have been filed with the County of Hawai'i. Therefore, taxpayers who are subject to the HCTAT will only need to file Forms TA-1 and TA-2 with DOTAX, as they are currently required.   Taxpayers subject to the HCTAT will not need to file separate HCTAT return with the County of Hawai'i.

Payment Due Dates
HCTAT payments are due concurrent with the State TAT returns and payments.  Thus, payments are due on or before the 20th day of the calendar month following the close of the filing period. For periodic returns, taxpayers are required to file Form TA-1 on a monthly, quarterly, or semi-annual basis.

  • For monthly filers, the first HCTAT payment is due on or before February 22, 2022.
  • For quarterly filers, the first HCTAT payment is due on or before April 20, 2022.
  • For semi-annual filers, the first HCTAT payment is due on or before July 20, 2022. 


The annual reconciliation of the State TAT return (Form TA-2) is due on or before the 20th day of the fourth calendar month following the close of the taxable year.  As a general rule, a HCTAT payment will only be due if taxable gross rental proceeds or fair market rental value attributable to County of Hawai'i is reported on Form TA-2 and not reported on Form TA-1 during the taxable year.  If an HCTAT payment is due, filing of Form TA-2 and payment must be made by the deadline.  For calendar year taxpayers, the deadline is April 20, 2023.

How to Calculate and Make HCTAT Payments
To calculate the HCTAT payment, multiply the sum of the taxable gross rental proceeds and fair market rental value less any applicable exemptions attributable to County of Hawai'i by 3 percent. For a monthly filer, the first HCTAT payment, as reported on the taxpayer's Form TA-1 for January is due on or before February 22, 2022.

Payment Methods The County of Hawai'i will accept HCTAT payments in the following methods:

By Mail:

Mail payment with the payment voucher form to:
County of Hawai'i 
Hawai'i County TAT Office
25 Aupuni Street, Suite 1101
Hilo, HI 96720

Note:  Please do not send cash. All checks should be made payable to the “Director of Finance” in U.S. dollars drawn on any U.S. bank. Attach your check to the payment voucher.  The following information should be written on your check so payment will be properly credited if the check is separated from the payment voucher form:

  • HCTAT
  • The filing period
  • Your State TAT ID number
  • Your daytime phone number
  • Click Here to download a payment voucher form (Form HCTAT-1)

Online:

Automated Clearing House (ACH) payments are accepted via the County’s online payment portal at www.hawaiicounty.gov.  No fees will be assessed for ACH payments. However, ACH payments require bank verification, which can take up to 4 days.  If your payment needs to completed sooner, please remit your payment using other payment method.

Taxpayers whose liability for the TAT exceeds $100,000 per year are required to pay tax by EFT.  ACH payment that will be made via the County’s online payment portal will satisfy this requirement.

Bulk Filers:

HCTAT payments for multiple State TAT ID numbers may be remitted via County’s online payment portal rather than having to submit ACH payments online for each individual State TAT ID number.  A one-time Bulk Filers Program Registration Form must be completed and submitted to HCTAT Office.  Participants must be registered to access the online payment portal. Additionally, detailed payment information, in an Excel file format (HCTAT’s Bulk Filers Simple File) must be submitted via email at HawaiiCountyTATBulkFilers@hawaiicounty.gov as soon as a payment has been made online. To register to this program and for eligibility requirements, please refer to the HCTAT Bulk Filers Instructions Manual. 

IMPORTANT: Commercial Bank Account Holders with an account covered by ACH Debit Block Service must provide their financial institution with the County’s ACH Debit ID No. 00000000000.

For more information contact the HCTAT Office.  DOTAX will not be able to answer any questions regarding the HCTAT.

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1 Hawai'i County Code §2.
2 State of Hawaii, Department of Taxation - Form TA-1/TA-2, Line 3, Column C.
3 State of Hawaii, Department of Taxation - Form TA-1/TA-2, Line 7.
4 Hawaii Revised Statutes (HRS) §237D-2.
5 HRS §§ 237D-6, 7.
6 Hawai'i County Transient Accommodations Tax is levied beginning on January 1, 2022.
7 Payment voucher form will be posted in the County’s website and mailed out to taxpayers who filed previously with DOTAX when it becomes available.

 

 

CONTACT US 

Hawai'i County TAT Office

Email:

HawaiiCountyTAT@hawaiicounty.gov

Mailing Address:

Hawai'i County TAT Office
25 Aupuni Street, Suite 1101
Hilo, HI 96720

Phone: (808) 961-8793   

FAQs

  • What is the County Transient Accommodations Tax?

  • Who has to pay the HCTAT?

  • When is this effective?

  • When are payments due?

  • Can I just make one payment for both the State and County portions?

  • Do I have to file a separate return with the County of Hawai'i?

  • If I don't have to file a separate return, how will you know how to apply my payment

  • What happens if I don't pay?

  • Can I pass the County Transient Accommodations Tax on to the visitor?

  • How do I pay my County Transient Accommodations Tax?

  • What about bookings made in advance before the effective date?

More FAQs

HCTAT Bulk Filers Program


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