HI HB1327

Amends Hawaii Revised Statutes section 237-16.5 to allow taxpayers who furnish transient accommodations on leased real property to claim a general excise tax deduction, treating such arrangements as subleases regardless of whether they are in writing.

Permits the deduction for transient accommodations furnished on real property leased from a related entity without requiring compliance with the allocation and reasonable basis requirements that normally apply to subleases.

Defines "transient accommodations" by reference to section 237D-1 and "related entity" by reference to section 237-23.5.

Removes the word "written" from the section title to reflect that transient accommodations need not be documented in writing to qualify for the deduction.

Effective date: July 1, 2020.