Hawaii accommodation tax

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Hawaii accommodation tax

Is Airbnb collecting Hawaii state accommodation tax yet?

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Stephanie
Community Manager
Community Manager
London, United Kingdom

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Bob74
Level 2
Lakeville, MN

As an Air bnb stockholder and host I’m perplexed as to why Airbnb will not collect GE and accommodation taxes for hosts in Hawaii.

It becomes very cumbersome to continually say the guest to pay the taxes let alone always having to get Airbnb involved in the collection process. There competitors like VRBO collects on behalf of hosts.

This needs to change.

I have previously asked support for help and was lied to. Regarding your request to post our TMK numbers (property ID) for Hawaii you are exposing all owners to privacy violations by exposing their personal information to the public. As we all know, and Airbnb recommends not to post your unit number or personal information to  prevent scammers and fraud you are now doing exactly that!  By posting the TMK number to the public anyone can search that number on the on the Maui County (for Maui properties) and not only see the exact unit number but also the owners full name, home address and personal information. This will lead to fraud, endangering all guests (as it will show criminals the address and unit numbers), exposing guests to theft, burglary and rape. AIRBNB WILL BE HELD LIABLE FOR ALL SUCH OCCURRENCES AND LAWSUITS.

I was told by the Airbnb customer service it would not be published, and I requested such determination in written email and was told I would receive it but never did. Airbnb is violating our privacy and exposing all guests and hosts to danger. YOU MUST BLOCK THE INFO FROM THE PUBLIC AT ONCE!

Tim-and-Carolyn1
Level 1
Aliso Viejo, CA

It is 2022 and I still don't have a solution from AirBnB to collect my guest GE & TA Taxes.

 

Hi My friend that also uses AirBnB on their Hawaii property is able to have Airbnb collect taxes from their guest and I don't have the same listing options to set my tax up so it can be collected. Can someone please assist me with this? My taxes on Maui, HI are currently at 17.42% - Thanks Tim Duchene

Stephanie
Community Manager
Community Manager
London, United Kingdom

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Momi0
Level 10
Honolulu, HI

@Robyn15  Aloha my fellow Kama'aina.  This is a very good question.  There is a two part answer to this.

Yes, Airbnb is collecting a tax from each guest who books with a Hawaii host which is listed in their detailed pricing summary in the confirmed booking email, but its only being collected as $1.  Which is in no way equal to the 9.25% Hawaii Accommodation Tax that is calculated/collected by each hotel and bed/breakfast home.  However, it was certainly a way for Airbnb to show the state that they could collect a tax, and be upfront about it with their records. I can share with you that Expedia recently was sued and judgement was granted for $330 million dollars for all the tax they collected from their customers but never turned that tax money over to the State.  Several hosts are still collecting that from their guests in their nightly rate or collected in person as stated in their profile.   Myself, I called Airbnb to speak with a Manager to get clarification on this tax issue since we all want be right with Uncle Sam....haha

 

Check out Mondays article dated March 6, 2016 of Star Advertiser which you can also find online.  There is some information about Bill 2693 and House Bill 1850 being voted on which would allow Airbnb to legally collect this necessary 9,25% tax which is of course supported by the Department of Taxation for Hawaii.  However, the bill has only passed in the House.   Both bills are advancing but this is in no way a loophole to not pay the tax yourself at the State Tax office on Punchbowl Street or mailing it in with the appropriate tax form reporting your quarterly income. 

 

Its important to understand that the State of Hawaii and the City of Honolulu zoning laws do not agree with each other on the legality of Airbnb.  However, it is the sole responbility of each host to have a GE License Tax No and a State Accommodation Tax ID as well in order to pay your fair share of the taxes for this income through Airbnb.  However, keep in mind that its hard to pay a Transient Tax when the Honolulu permit office hasn't issued a single permit for a Bed and Breakfast venue since 1987, making it extremely hard to do business as as legal Bed and Breakfast.  Even though hundreds of applications have been submitted.  Makes me think of that saying..."Why teach me how to swim if you are just going to tie my hands behind my back".  But that's Hawaii for you. Hope this answer was helpful.   

 

Side Note: Did you know that Mayor Cardwell threw $300,00 of our hard earned taxed dollars into that very same permit office to hire more inspectors?  These are the same inspectors who are now approaching the many homes of Airbnb Hosts to make sure they are following the laws of vacation rentals?    Go online and read the latest articles/videos to come out since January 6, 2016.  Its outrageous.  Rumor has it he stole it from our Hurricane fund....makes me seriously nervous since we haven't had a hurricane since 1991.   Yikes. 

 

But I still consider myself very #LuckyToLiveHawaii 🙂

If you feel that me or another host have helped you, feel free to click on the "thumbs up" button at the end of any post. Thank you so much.

Aloha, Momi

Great way to contact Airbnb or via Twitter at AirbnbHelp / Facebook


Why can't airbnb collect the 13.42% Hawaii Excise and Transient tax and send it to the host.  I pay monthly to the State of Hawaii.

 

What I do not like is I have hear that even though I have grossed but the price of our rental to cover the tax that at the end of the year airbnb will be sending me a 1099 that shows the tax as revenue.  That is not correct, they need to change the form for all accommodation in the state of Hawaii and send us the tax as a non revenue amount.

 

I have only been on airbnb for 2 weeks so really need help here.

 

Linda ***

My Waii Beach Cotage-Maui

Something we have been complaining about since 1998 when I opened my own brick and mortar BnB in Lahaina (Pennys Place Inn Paradise). double taxed! And when we sold it we paid capitol gains to the state of HI  - AND to the IRS! double taxed to the max! Not Pono. 

 

Linda,

 

You make an excellent point.

 

I think I have a way to avoid overpayment of TAT/GET (see my conversation with Larry elsewhere in community).  

 

But, I hadn't thought of the 1099 which surely poses a problem at the Tax Department.  Airbnb will report in the 1099 what they paid the Host.  The Host (if they are like me) will pay taxes computed against a lower amount of Gross Income disclosed using the "Visible Pass-on" guidelines provided by the Tax Depatment (see my note to Larry).

 

The Department may determine a mismatch between the 1099 and the Host's filings.  I doubt that, but if the 1099 result affects your income tax computation (as separate from your GET-TAT payments), it could be a problem.

 

In that case, you should check around with a Hawaii resident who pays income taxes.

 

Dean

Dean,

 

Thanks for this useful information, where can I see your conversation with Larry elsewhere in community? Have Visible disclosure worked  for you?Have you filed your taxes ?

 

 

 

 

Yes. Have been reporting TAT  & GET  since CY 2016. Now online forms available. They calculate, I print, sign and send. 

 

 

Hi Dean,

Quick couple of questions for you, since you appear to know the tax situation here in Hawaii fairly well 🙂  (thanks for doing all that legwork!)  First question, do I have to apply to state of HI for my TAT and GET license?  And, do I count my cleaning fee into the total to be taxed, or just my nightly room rate?  Mahalo for any help with this!

Susan

I'm not a pro...just a landlord taxpayer.  
 
So, I'll just tell you what I did.  I have been a long-term registered GET taxpayer and do have a GET license.  I keep a copy of it in the apartment I rent. 
 
That leaves the Transient Accommodations Tax Registration.  Yes, you must register even if the short term rental is an occasional practice. Proof lies in the license issued by the Tax Department. 
 
Now where to register?  I went to the web and searched for the Hawaii State Tax Department.  Look for "Transient Accommodations Tax I.D."  I'm sure you can obtain the GETax license in the same way.  They are both a one time excercise and I keep copies in the apartment - not visible - but in convenient drawers.
 
Maid fee.  My understanding is that maid fees paid by the tenant are subject to the TAT and GET.
 
Hope this helps.  Dean

Hi,

I realize your post was back in October 2017 but hoping you will see this & reply.  I am new to the vacation rental market here in Hawaii & have just encountered the TAT & GE tax issue.  Can you tell me what form you are referring to & how I can get it online?  

Thanks so much!

Becky

 

 

 

 

 

 

 

Hello you have to go onto Hawaii tax online and fill out paperwork it is super easy I just did it. It cost 25.00 to pay online. General Excise Tax and Transient accomodation tax. here is a link to help explain what it is.

http://files.hawaii.gov/tax/legal/brochures/renting_residential.pdf

I thought it was illegal to do Airbnb in Oahu.. Not sure anyhow hopefully I helped you a bit.