Hawaiian legislators approve plans to tax Airbnb and other short-term rentals


Source: USA Today
By Associated Press
April 10, 2019

HONOLULU – Hawaii lawmakers eager to gather tax revenue from the state’s flourishing, yet mostly unpermitted, vacation rental sector on Tuesday passed legislation that would require websites like Airbnb to collect and pay taxes on behalf of short-term rental hosts.

The state House and Senate both approved separate bills on Tuesday. Senators and representatives are expected to meet later this month to discuss differences.

Attempts to enact similar measures have failed in Hawaii in past years, but lawmakers said they believe they have a better chance of succeeding this time.

Many Hawaii vacation rentals are operated illegally, making tax collection more challenging. The transient accommodations and general excise taxes the short-term rental operators must pay are levied by the state.

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