HOUSE OF REPRESENTATIVES H.B. NO. 889 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to the transient accommodations tax. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 889
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
HOUSE OF REPRESENTATIVES
H.B. NO.
889
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating to the transient accommodations tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the transient accommodations tax, established by Act 340, Session Laws of Hawaii 1986, was intended to provide revenue to the counties to offset the impacts of visitor activities on county infrastructure and services. The legislature further finds that when Hawaii residents choose to vacation within the State, they are also subject to the transient accommodations tax, effectively creating a double taxation burden on residents who are already supporting the overall cost of state and county infrastructure and public services through various other forms of taxation, including but not limited to income tax, general excise tax, and property tax. Accordingly, the purpose of this Act is to create a refundable tax credit for the State's residents equal to the amount of transient accommodations tax paid for accommodations within the State. SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235- Transient accommodations tax credit. (a) Any taxpayer who files an individual income tax return may claim a refundable transient accommodations tax credit against the taxpayer's individual income tax liability equal to the full amount of transient accommodations taxes incurred and paid within the State during the taxable year. (b) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by the taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1. (c) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91. (d) All the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section. (e) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the claim may be claimed." SECTION 3. New statutory material is underscored. SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024. INTRODUCED BY: _____________________________
SECTION 1. The legislature finds that the transient accommodations tax, established by Act 340, Session Laws of Hawaii 1986, was intended to provide revenue to the counties to offset the impacts of visitor activities on county infrastructure and services. The legislature further finds that when Hawaii residents choose to vacation within the State, they are also subject to the transient accommodations tax, effectively creating a double taxation burden on residents who are already supporting the overall cost of state and county infrastructure and public services through various other forms of taxation, including but not limited to income tax, general excise tax, and property tax.
Accordingly, the purpose of this Act is to create a refundable tax credit for the State's residents equal to the amount of transient accommodations tax paid for accommodations within the State.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Transient accommodations tax credit. (a) Any taxpayer who files an individual income tax return may claim a refundable transient accommodations tax credit against the taxpayer's individual income tax liability equal to the full amount of transient accommodations taxes incurred and paid within the State during the taxable year.
(b) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by the taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.
(c) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
(d) All the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.
(e) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the claim may be claimed."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
INTRODUCED BY: _____________________________
INTRODUCED BY:
_____________________________
Report Title: Transient Accommodations Tax; Tax Credit Description: Provides Hawaii taxpayers with a refundable transient accommodations tax credit. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
Transient Accommodations Tax; Tax Credit
Description:
Provides Hawaii taxpayers with a refundable transient accommodations tax credit.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.