HB 1875 Summary

• Repeals the maximum tax rate limit for county transient accommodations tax, allowing counties to set their own rates without the current 3% cap.

• Removes language from Hawaii Revised Statutes Section 237D-2.5(a) that prohibits counties from setting transient accommodations tax rates greater than 3% of gross rental proceeds.

• Amends Section 46-20.7 to authorize each county to establish a transient accommodations tax by ordinance without specifying a maximum rate limitation.

• County directors of finance retain all rights and powers under the tax code for administering the county transient accommodations tax.

• Takes effect on July 1, 2024.