Hawaii Senate passed Bill 1292 in a 13 to 12 vote. The bill allows AirBnB to collect TAT and GET taxes on behalf of its hosts. The bill goes to Governor Ige for consideration next. There was a lot of pressure in the senate to pass this bill to access the $46 billion in estimated revenue.
The governor has turned down this bill before, which does not differentiate between legal and illegal rentals. Some have criticised this bill as a de-facto way of legalizing illegal short term rentals because Airbnb is not required to report taxes with names and addresses. It remains to be seen exactly how that would work for permitted hosts having the service collect their GET and TAT taxes.
While Oahu struggles with short term rental legislation, Maui has a sanctioned and legit Short Term rental and Bed and Breakfast industry. It may not be in Airbnb’s interests to focus on our legal permitted system, yet they continue to be a leader in the marketing aspect of short term rentals. I would like to see our permitted industry, while not perfect, set as an example for the state.
For members that utilize AirBnb and want a way to collect taxes directly from guests AirBnb has said they have a tool available that you can turn on in professional hosting tools. More information here: https://www.airbnb.com/help/article/2523/how-do-i-add-occupancy-taxes-to-my-listings.
Let me know if you utilize this tool and how it is working for you. If you haven't joined Maui Vacation Rental Association yet, please take a moment to become a member we would love to have you!