Hawaii Senate Bill 1292 just squeaked by passing which will allow the Aloha State to collect transient accommodation and general excise taxes from short-term rentals with a vote of 13 to 12. This bill means that places like Airbnb and HomeAway will collect taxes on behalf of the state. Hawaii Governor Ige will now receive the bill for his consideration.
Although it is illegal to run short-term rentals of less than 30 days in the state, many homeowners are operating these rentals outside the law and skipping on paying any taxes. Hawaii lawmakers are anxious to get their budget feeding off the anticipated $46 million the taxes would pull in.
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After the Senate voted the bill down in a 12 to 12 vote this past Friday, the Senate Ways and Means Chairman, Senator Donovan Dela Cruz, a supporter of the bill known as the Airbnb bill, stated before legislators that around 15 other unrelated bills would be placed at risk if the state failed to pass the Airbnb bill. The Senator said “these needed programs will get funded” if the Airbnb bill passes.