TVR/STR Real Property Tax Trends

Speaking of real property tax increases, Here is what we know about the last 6 years in property tax trends and the Short Term Rental Classification.

The short term rentals generated 40% of real property tax revenue this fiscal year (FY23-24), or $213.7M. This amount represents 20% of the county operating budget. This is the largest single revenue generating category in the real property tax classifications. Next would be Non Owner Occupied property $127.6M, followed by Timeshare $54.7M and Hotel Resort with $51M. 

The county increased their budget this year by $102M, and 52% of that increase or $53M came from increased revenue in the TVR/STR category. The next highest increase was $7.5M in the Hotel/Resort classification (7 times less than the STR increase).

The short term rental category is the only category out of all twelve of the county land use classifications that has seen 6 consecutive years of increased tax revenue generation. It is also the only land use classification that has seen 6 consecutive years of increased assessment value in this period as well. The TVR/STR classification grew from 28% in FY2018-2019 to 40% of the total Real Property Tax revenue in 5 years.

Looking at visitor adjacent land use classifications specifically, the county has an increasing propensity to lean on the visitor industry to make up the lion's share of their budget. The classifications of Hotel/Resort, Timeshare, Non Owner Occupied and TVR/STR together comprise 84% of the Real Property Tax revenues in this fiscal year. That figure was 56% in FY2018-2019. 

To view this data stream click here. 

Source for all data sets https://www.realpropertyhonolulu.com/state-reports/2023/