Hawaii Imposes Transient Accommodations Tax Duties on Brokers and Travel Agencies

Hawaii imposes transient accommodations tax on the compensation received for entering into arrangements to furnish transient accommodations.

The tax applies to the following entities that arrange transient accommodations at noncommissioned negotiated contract rates:

– transient accommodations brokers;

– travel agencies; and

– tour packagers.

Generally, the tax applies to these entities in the same manner as it applies to transient accommodations operators.

Allocation of Tax

Each transient accommodations broker, travel agency, and tour packager is subject to tax on their own portion of the proceeds.

Registration Requirement

Hawaii also requires certain transient accommodations brokers, travel agencies, and tour packagers to:

– register with the Director of Taxation; and

– make a one-time payment of $15 for each registration.

These requirements apply to those who furnish transient accommodations at noncommissioned negotiated contract rates.

Act 211 (S.B. 2868), Laws 2018, effective July 1, 2018, and applicable to taxable years beginning after 2018

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