HB 107 HD 1 was introduced in the Hawaii legislature in February and is working it's way through the committees. This bill will require that a real estate agent be involved in every rental transaction for less than 30 days. The real estate agent will collect the GET and TAT taxes and report to the Hawaii state government. It is my opinion that this bill will severly impact the vacation retnal industry.
This step would just increase the cost to provide vacation rental properties, making Hawaii that much more expensive a vacation choice.There are laws on the books already requiring the payment of GE and TAT taxes, and those laws should be enforced.Requiring owners to work through a real estate agent only adds cost to those owners paying taxes already and does nothing to insure those not paying taxes will now pay taxes.This is not a solution, enforcement of existing laws is.
If this effects your rental, please contact the Hawaii legislature and voice your NO opinion.
This Bill DEFERRED in the house 2/23/11. Basically, this means the bill is DEAD on the hose.
The CPN committee chaired by State Senator Rosslyn Baker will hold a hearing 2/28/12 at 10am Hawaii time.
Please write the senator preferable vids the www.hawaii.gov website. Look for Bill ID- propagate the field with SB 2089. Then look for submit testimony. I'd use a WORD or PDF file to upload. It's really easy and the legislators want to hear from those who oppose this bill.
I've spoken to thevCommittee Chairs legislative aides on the House and Senate side- there are major concerns with the bill. But, VRBO owners should take the time to write a meaningful letter:
I included the following in mt letter:
1) I acknowledged I had a Hawaii Tax ID number
2) I acknowledged I pay all the TAT/GET and issue a 1099 to myself at the end of every year.
3) Then, I indicated the measure was discriminatory and that it is ultimately my responsibility to collect and pay my taxes. The tax code is clear on transient accommodation and taxes.
4) I discussed potential problems of property managers inability to fairly book my unit.
5) I disagreed that the property managers could manage my unit better- I explained that I have two on island contacts within 5 min away. I explain that I discuss with the VRBO guest bookings that I'm off island but do not hesitate to call me.
6) lastly, I indicated that this measure is an infringement on the basic tenant upon which our society is founded, that being FREE MARKETS and CAPITOLISM.
The measure has serious problems but we need to do our part.