Hawaii hikes hotel tax to pay for Honolulu Rail Transit

7 years ago
by Linda Hohnolz

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Hawaii Tourism Authority today issued the following Travel Industry Notification RE: 1% Transient Accommodations Tax Increase Takes Effect January 1, 2018:

Please be advised that, effective January 1, 2018, the Transient Accommodations Tax (TAT) applied to lodging accommodations in the State of Hawaii will be increased by 1%, raising the TAT from its current rate of 9.25% to 10.25%. This increase is scheduled to stay in effect until December 31, 2030.

The TAT increase is being put into effect to help pay for Honolulu’s rapid transit system that is currently under construction. The light metro rail system will extend 20 miles from Kapolei in Leeward Oahu to Ala Moana Center in Honolulu with 21 stations along the way, including the Daniel K. Inouye International Airport, the State of Hawaii’s main port of entry for air transportation.

Following is a summary of State taxes that will be applied by lodging properties statewide when the 1% TAT increase takes effect on January 1, 2018:

Oahu

4.712%: General Excise Tax
10.25%: Transient Accommodations Tax (TAT)
14.962%: TOTAL Lodging Taxes

Maui County / Island of Hawaii / Kauai

4.166%: General Excise Tax
10.25%: Transient Accommodations Tax (TAT)
14.416%: TOTAL Lodging Taxes

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