HI HB1242

Limits short-term rental operators to registering no more than two units, with operators able to supplement registrations as long as total does not exceed two short-term rentals.

Caps short-term rental use at 60 calendar days per year per dwelling unit statewide, with counties authorized to establish more stringent caps within their zoning districts.

Imposes a 4% surcharge on all short-term rental booking transactions, with up to 8% of surcharge revenue available for administration costs.

Allows hosting platforms registered with the Department of Taxation to collect and remit transient accommodations tax and general excise tax on behalf of short-term rental operators, provided they report detailed operator and booking transaction information.

Requires hosting platforms to remove listings for short-term rentals that fail to comply with registration, zoning, or tax requirements within 90 days of notice, with penalties ranging from $500 to $5,000 per day for violations.