Tuesday, June 18, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, December 3, 2021
Oahu's new 'tourism tax' will affect residents, too
By Grassroot Institute @ 1:19 PM :: 2873 Views :: Rail, Taxes, Tourism

Oahu's new 'tourism tax' will affect residents, too

News Release From Grassroot Institute December 2, 2021

The Honolulu City Council on Wednesday approved Bill 40, which pending the mayor's signature, will establish a 3% transient accommodations tax for the City and County of Honolulu. 

The new tax will, in effect, be a surcharge to the state's 10.25% TAT. That means any visitor staying at a hotel or short-term vacation rental on Oahu will face a total tax of 13.25%. 

Kauai and Maui counties also have imposed the new surcharge, authorized by the 2021 state Legislature, and Hawaii County will be considering a bill to do so this coming Wednesday. 

Joe Kent, institute executive vice-president, warned the Honolulu County Council in testimony in October and again earlier this week that the effects of a TAT increase would impact not just tourists. Residents also use local transient accommodations, he said.

Moreover, it would further burden tourism, one of the state’s most vital industries, tourism, which was slammed by the coronavirus lockdowns and isn’t expected to fully recover for several years. Combined with the state and county general excise taxes that tourists also pay, the new tax will mean Hawaii has the highest tourism taxes in the nation. 

“High unemployment, regulatory uncertainty for businesses and continued confusion over the state’s destination-management strategy make this a bad time to add more taxes onto one of the state’s most valuable industries,” Kent said.

Adding insult to injury, one-third of revenues from the new tax will be dedicated to the county's over-budget and behind-schedule rail project, despite its history of fiscal mismanagement and lack of transparency. Moreover, projected revenues from the tax fall short of what the project needs to cover its budget shortfalls.

The bill’s fate is now in the hands of Honolulu Mayor Rick Blangiardi, who is expected to sign it.

>>> READ THE TESTIMONY <<<

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii