New tax could make your next Hawaii trip even more expensive
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Visitors to Hawaii can expect to see an additional 3% tax added to their bills for hotel and short-term stays, the Associated Press reported last week.
The Maui County City Council is working to implement the new tax after the Hawaii Legislature overrode Gov. David Ige’s July 6 veto of HB862, which would authorize Hawaiian counties to establish and collect a 3% county transient accommodations tax; eliminate $103 million in hotel room tax revenue to Kauai, Hawaii and Maui counties, along with the city of Honolulu; and replace the source of the Hawaii Tourism Authority’s (HTA) budget.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
Maui County Council Chair Alice Lee told Hawaii News Now that the bill would “nearly triple revenue” from Maui tourism to approximately “$50 to $70 million.”
Despite support by the state Legislature and Maui City Council, not all local officials were in favor of the bill.
“I am very concerned that the funding and functional changes in this bill will severely damage HTA’s shift to destination management,” Ige said in a press statement. “We need to find ways to mitigate the impact of visitors on our islands, and this bill would make it impossible for the HTA to strike a more sustainable balance in our communities.” The American Hotel and Lodging Association echoed the governor’s concerns.
Related: Hawaii expands Clear partnership, expedites entry with digital COVID-19 vaccination checks
The bill was also met with mixed support by Maui County Mayor Michael Victorino.
“The Legislature’s action didn’t surprise me. It’s a mix of bad news and good news. The bad news is the immediate reduction in the County’s share of the revenue from state Transient Accommodations Tax,” he said in a press statement on July 6. “The good news is we anticipated this would happen, so it will not have an impact in the FY [fiscal year] 2022 budget.”
The transient accommodations tax refers to the 10% state hotel room tax, which is distributed based on population to individual counties. The new law will “allow counties to levy their own surcharge to the tax” and pocket the extra money, per Hawaii News Now.
Featured photo of Maui, Hawaii by Clint Henderson/The Points Guy.
Sign-up Successful!
Welcome to The Points Guy!
Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new card in your first three months of card membership. Plus, earn up to $100 back in statement credits for eligible purchases at U.S. restaurants with your card within the first 3 months of membership.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Earn 50,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $2,000 in purchases on your new Card in your first 3 months.
- Plus, earn up to $100 back in statement credits for eligible purchases at US restaurants with your card within the first 3 months of membership.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.