Hawaii House of Representatives Passes Timeshare Tax

2011-03-11

Issue Brief

Earlier this week, despite testimony against the bill from numerous timeshare owners, timeshare managers, timeshare developers, and other interested parties, the Hawaii House of Representatives passed HB 809 HD2, by a vote of 43-8. 

Impact

HB 809 HD2 provides for an increase of the current transient accommodations tax rate of 7.25% to a new rate of 9.25%. This means the tax an owner would pay on a $1,000 maintenance fee would increase from $36.25 to $46.25--a 27.5% increase.

Position/Call to Action

While ARDA-ROC testified against the passage of the measure, the 27.5% increase is significantly lower than the previous 300% proposal that was included as part of the initial tax package heard by the House Tourism Committee.  The bill will now move to the Hawaii Senate where its first stop will be the Senate Tourism Committee.  ARDA-ROC, as well as ARDA-Hawaii, is committed to fight any tax increase on timeshare owners and will continue to communicate via the ardaroc.org website as to how you can help.

Issue Updates

Please check back to www.ardaroc.org for updates on this and other Hawaii related issues.