Bill > HB604

This bill increases the transient accommodations tax (TAT), which is a tax on short-term rentals like hotel stays, from 9.25% to 10.25% beginning on January 1, 2026. The additional revenue generated by this 1 percentage point tax increase will be specifically deposited into the Hawaiian Home General Loan Fund, which supports loans and financial assistance for Native Hawaiian lessees of Hawaiian home lands. The bill modifies existing statutes related to the transient accommodations tax, ensuring that the extra revenue from the tax rate increase will be directed to support Native Hawaiian housing and economic development programs. The tax increase applies to both standard transient accommodations and resort time share vacation units, maintaining the same percentage increase across different types of short-term lodging. By dedicating these additional tax revenues to the Hawaiian Home General Loan Fund, the bill aims to provide more financial resources for Native Hawaiian land management and economic opportunities. The bill is set to take effect on July 1, 3000, though this is likely a typographical error and would typically mean July 1, 2026, aligning with the tax rate change.

Budget and Finance, Business and Industry, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=604&year=2026