HAR §18-237D-2-01. Imposition and rates

For the purposes of this chapter, there shall be levied and assessed and collected each month a tax of: (1) 7.25 per cent on the gross rental or gross rental proceeds derived from furnishing transient accommodations during the period January 1, 1999, and thereafter; or (2) 7.25 per cent on the unit’s “fair market rental value” for the period beginning on January 1, 1999, and thereafter. The tax shall be assessed and collected each month on the occupant of a resort time share vacation unit. Every time share plan manager shall be liable for and pay to the department the transient accommodations tax. If a time share unit is rented, the plan manager shall be liable for the transient accommodations tax on the unit’s “fair market rental value” under section 237D- 2(c) and (d), HRS. Example. ABC Hotel, engaged in the activity of furnishing transient accommodations, charges and collects $500 from a transient ($100 per night). The transient checked in on December 30, 1998, and checked out on January 4, 1999. The transient accommodations tax is imposed at 6 per cent for accommodations on the nights of December 30 and 31, and it is imposed at 7.25 per cent for accommodations on the nights of January 1, 2, and 3. The total tax due is 6 per cent of $200 ($12) plus 7.25 per cent of $300 ($21.75) for a total of $33.75 in transient accommodations tax. [Eff 11/25/88; am 7/18/94; am 6/3/05] (Auth: HRS §§231-3(9), 237D-16(b)) (Imp: HRS §237D-2)