Hawaiian State Law has numerous requirements for vacation property owners. It is recommended that all owners become very familiar with ACT 204 which took affect on January 1, 2016. The new law mandates stiff penalties for failure to follow its provisions. To read RBOAA’s discussion of the law see here. To read the entire bill from the Hawaiian Government website, click here. In addition to state law, each county has its own zoning and other requirements which each property owner should make an effort to understand. A summary of Act 204’s requirements is listed below:
- Obtain a General Excise Tax (GET) License
- Obtain a Transient Accommodations Tax (TAT) License
(You can obtain both of the above by submitting Form BB-1 to the Hawaii Department of Taxation)
- Post your Tax ID # on your web site advertisements such as VRBO and a copy of your licenses in your accommodations
- If you live “off-island” you are required to have an on-island Local Contact.
- You must communicate the name and contact info of your local contact to your guests and also post it in your accommodations.
- You do NOT have to use realtor or property manger, unless they are renting or managing the unit for you.
- File your non-resident N-15 State Income Tax Return.
- File GE-45 (General Excise) taxes quarterly or monthly as well as your Annual GE-49 form. [download document] Contains New General Instructions for Filing G-45/49 (Rev 2011)
- File TA-1 (Transient Accommodation) taxes quarterly or monthly [download document] Contains New General Instructions for Filing TA-1 (Rev 2011) as well as your Annual TA-2 form. [download document] Contains New Instructions for Filing TA-2 (Rev 2011)
To access these forms and their instructions visit the State of Hawaii Alphabetical listing of Hawaii Forms and Publications page [view site].
Please consult with your tax advisor if you have any questions.