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3152 Views 6 Replies Latest reply: May 26, 2012 1:11 PM by anja RSS
bha Contributor 44 posts since
Mar 12, 2011
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May 18, 2012 12:10 AM

Summary of New Bill that will impact Transient Rentals

 

House Bill 2078, C.D.1, passes Legislature. Awaits Governor’s signature.

 

The Landlord-Tenant Code already requires a landlord who lives outside of the State or on a different island to

designate an agent who resides on the same island. How is this law different?

 

This law makes changes to the transient accommodations tax (“TAT”) law, as opposed to the Landlord-Tenant Code. It

adds to the TAT law the requirement that, “any operator of a transient accommodation shall designate a local contact

residing on the same island where the transient accommodation is located.”

 

What is an operator?

 

Under HRS 237D, an operator is defined as “any person operating a transient accommodation, whether as owner or

proprietor or as lessee, sublessee, mortgagee in possession, licensee, or otherwise, or engaging or continuing in any service

business which involves the actual furnishing of transient accommodation.”

 

What is a local contact?

 

In this law, a local contact means any individual or company contracted by the operator of the transient accommodation

to provide services required under the law. This law does not create an employer-employee relationship between an

operator and its local contact. Also, it does not require the local contact be a real estate licensee (See operator definition.)

 

What additional requirements does the operator have to meet?

 

The operator must furnish the name, address, and contact information of the local contact to any association of

homeowners, community association, condo association, co-op, or other nongovernmental entity with covenants, bylaws,

and administrative provisions. See penalties.

 

What if the contact information changes?

 

The operator must notify and provide the updated information within 60 calendar days of any changes to the contact

information.

 

How will this affect rental agreements and transient accommodation contracts?

 

shall be included in any transient

accommodation contract or written rental agreement. See penalties.

 

How will this affect the property?

 

The name and phone number of the local contact must also be prominently posted in the transient accommodation.

 

I use a website to post my transient accommodation ads, how will this affect me?

 

The transient accommodation tax registration identification number shall be displayed in all website advertisements and

solicitations.

 

Are there penalties for not providing the information?

 

Requirements subject to penalties have been marked with see penalties. Any person who willfully fails to supply the

information may be subject to a fine of up to $25,000.

Any penalty assessed within this section may also be subject to penalties, for failure to file a return or pay transient

accommodations taxes, from the Dept. of Taxation (DoTax).

 

How will this information be reported?

 

Nongovernmental entities (condominiums and planned community associations) must provide to the Department of

Taxation all relevant information, maintained in its records, related to all operators who may be leasing their property as

transient accommodations by December 31st of each year, or within 60 days of any changes in relevant information,

operation, or ownership of the transient accommodation. See penalties

Counties are required to provide DoTax with information necessary to enforce this section. Also, DoTax must provide

the counties with information necessary for the enforcement of county real property tax laws.

 

 

This law takes effect on July 1, 2012, and is repealed (sunsets) on December 31, 2015.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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