New tax could make your upcoming Hawaii trip even more costly



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Guests to Hawaii can expect to see an extra 3% tax additional to their costs for lodge and short-phrase stays, the Connected Push noted last week.

The Maui County City Council is performing to apply the new tax right after the Hawaii Legislature overrode Gov. David Ige’s July 6 veto of HB862, which would authorize Hawaiian counties to set up and accumulate a 3% county transient accommodations tax eliminate $103 million in hotel room tax earnings to Kauai, Hawaii and Maui counties, along with the metropolis of Honolulu and substitute the source of the Hawaii Tourism Authority’s (HTA) budget.

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Maui County Council Chair Alice Lee told Hawaii News Now that the bill would “nearly triple revenue” from Maui tourism to somewhere around “$50 to $70 million.”

In spite of assist by the point out Legislature and Maui City Council, not all regional officials had been in favor of the monthly bill.

“I am pretty involved that the funding and useful adjustments in this monthly bill will seriously damage HTA’s change to desired destination management,” Ige mentioned in a push assertion. “We need to have to discover ways to mitigate the impression of visitors on our islands, and this invoice would make it unachievable for the HTA to strike a much more sustainable equilibrium in our communities.” The American Hotel and Lodging Affiliation echoed the governor’s issues.

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The bill was also met with blended assistance by Maui County Mayor Michael Victorino.

“The Legislature’s action did not shock me. It’s a blend of terrible information and very good information. The poor information is the speedy reduction in the County’s share of the profits from point out Transient Lodging Tax,” he said in a push assertion on July 6. “The superior news is we expected this would materialize, so it will not have an influence in the FY [fiscal year] 2022 budget.”

The transient lodging tax refers to the 10% point out hotel home tax, which is distributed dependent on populace to particular person counties. The new regulation will “allow counties to levy their own surcharge to the tax” and pocket the more revenue, for every Hawaii News Now.

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Showcased picture of Maui, Hawaii by Clint Henderson/The Factors Dude.

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Editorial Disclaimer: Opinions expressed right here are the author’s by yourself, not all those of any financial institution, credit score card issuer, airlines or resort chain, and have not been reviewed, authorized or or else endorsed by any of these entities.

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