HI SB704

Allows transient accommodations brokers (vacation rental platforms) to register as tax collection agents with the Hawaii Department of Taxation to collect and remit general excise tax and transient accommodations tax on behalf of their operators and plan managers.

Registration is valid for 30 days after submission of a completed application and is specific to the broker and their website or platform; the broker assumes all tax obligations and liabilities for taxes collected on behalf of operators using their services.

Requires brokers to notify property operators that their properties must comply with applicable land use laws before advertising and to require operators to attest compliance using specific language in their terms of service.

Brokers must provide annual reports to the director showing the total number of operators by county and total taxes collected and remitted by county; the director may deny or cancel registration for violations of tax law or prior tax collection agreements.

Sunsets December 31, 2022; takes effect July 1, 2017, and applies to taxable years beginning after December 31, 2017; allocates transient accommodations tax revenues to counties for compliance and enforcement for fiscal year 2017-2018.