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3% tax added to hotel rooms, vacation rentals on Hawaiʻi Island

A new study finds that while "receiving unearned preferential treatment does generate positive reactions, it is not always an entirely pleasurable experience." Examples include getting a free upgrade on a hotel room.
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The County of Hawaiʻi has passed a 3% tax on transient accommodations such as hotel rooms and short-term vacation rentals.

The Hawaiʻi County Council voted unanimously in favor of the bill at its meeting on Dec. 8 and Mayor Mitch Roth signed it into law last Friday, Dec. 10.

The tax goes into effect on Jan. 1.

The Hawaiʻi State Legislature took away each county's share of the state transient accommodations tax last session, but it allowed each county to create its own visitor bed tax up to 3%.

Hawaiʻi's four major counties have each enacted the tax — which is in addition to the 10.25% state TAT.

Prior to the pandemic, Hawaiʻi County received $19 million in TAT revenue from the state.

Click here to learn more.

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