In 2011, members of the state of Hawaii’s House and Senate had agreed to increase the transient accomodation tax rate from 7.25 percent to 9.25, to help the state through the recession. Originally, that increase was set to expire in 2015, but Hawaii lawmakers have now agreed to make this rate permanent.
Senate Bill 1194 also includes a component giving the Hawaii Tourism Authority at total of $82 million from the revenue brought in by the transient accomodation tax. This was an increase of $11 million from previous years. House Finance Committee chairwoman, Sylvia Luke, stated, “The important portion was increasing the allocation to Hawaii Tourism Authority to allow them to do marketing, especially in the next few years as the market is going to be soft. That was an important component.” President and chief executive officer for the HTA, Mike McCartney, added, “They invested in Hawaii by giving us an additional $11 million to continue our marketing efforts and to make sure Hawaii has the best experience possible.”
State Budget Director Kalbert Young praised lawmakers decision to make the tax rate permanent and added that it would help to stablize the state’s financial budget over the long haul. Young stated, “Although the tax rate was not set to sunset for another two years, it’s better to have knowledge of where this rate is going to be into the long term. Better to do it today and let the industry be able to adapt into the future. So we feel it’s a very good thing.”
Source: Honolulu Star Advertiser, 4-25-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
