# Maui County Occupancy Tax starting Nov. 1st



## DeniseM (Oct 2, 2021)

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						County visitor lodging tax set to roll out next month
					

With more time needed to prepare, especially for smaller accommodations, the Maui County Council on Friday passed a new visitor lodging tax but put off enacting it until Nov. 1. Originally, the county’s new 3 percent transient accommodations tax was set to go into effect on Friday, when the...




					www.mauinews.com


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## echino (Oct 2, 2021)

An example of impact for Marriott Maui Ocean Club, new towers, 2br, nightly tax payable at checkout (my estimate):

Before increase: $21.25
After increase: $27.47


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## TXTortoise (Oct 2, 2021)

Not that tax...  It's the TAT not the daily occupancy tax(TOT).  

VacationCandy.com has already implemented the 3% increase, putting the GET + TAT on rentals at 17.25%.  









						GET, TAT & TOT Requirements for Homeowner Associations - Destination Maui
					

Do you get confused distinguishing between GET, TAT and TOT for Homeowner Associations? Hawaii General Excise Tax (“GET”), Hawaii Transient Accommodations Tax (“TAT”) and the Hawaii Time-Share Occupancy Tax (“TOT”)- these three taxes are based on gross income or receipts. In other words, they...




					www.destinationmaui.net


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## cowboy (Oct 5, 2021)

Just paid general excise tax 4.712% and transient accommodations tax 13.25% on Kauai.


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## dioxide45 (Oct 5, 2021)

TXTortoise said:


> Not that tax...  It's the TAT not the daily occupancy tax(TOT).
> 
> VacationCandy.com has already implemented the 3% increase, putting the GET + TAT on rentals at 17.25%.
> 
> ...


I don't think Vacation Candy should even be collecting this TAT, or if they are then the resorts should not be collecting TOT too. The TOT is there to replace the TAT when TAT can't be collected because it is not a paid stay (exchange, home resort stay). Resort charges TAT with a cash stay. TOT is collected based on 50% of the maintenance fee for a non paid stay. Here is my issue with Vacation Candy. I, as an owner, rent my week out through Vacation Candy. That is actually an owner occupied week which would normally pay the TOT when the owner stays at the property. Vacation Candy collects the TAT, but how does the resort (like Marriott) know that a tax has been collected by Vacation Candy and not also collect TOT?

If I book a stay at a timeshare resort on Marriott.com, I would pay TAT in the nightly rental rate, I don't also pay TOT too.

It is also my understanding that TAT and TOT are really the same. TOT is just collected when they can't collect TAT because it isn't a cash stay.


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## Henry M. (Oct 5, 2021)

Another interesting tidbit: I stayed at WKORVN on Bonvoy points a couple of weeks ago. No taxes were due on that stay. I guess it was considered a hotel stay and the rate was $0, so no tax was due.


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## controller1 (Oct 5, 2021)

Henry M. said:


> Another interesting tidbit: I stayed at WKORVN on Bonvoy points a couple of weeks ago. No taxes were due on that stay. I guess it was considered a hotel stay and the rate was $0, so no tax was due.



That's not why you didn't pay any taxes. The T&C of the Marriott Bonvoy program state a points stay covers any taxes which would normally be charged on the room.


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## tugcccsp (Oct 5, 2021)

Attached is a tax guide published in 2020 by the State of Hawaii explaining the TAT.  It is a long read and can be confusing, but it offers helpful information.



			https://files.hawaii.gov/tax/legal/brochures/TAT_brochure.pdf


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## dioxide45 (Oct 6, 2021)

tugcccsp said:


> Attached is a tax guide published in 2020 by the State of Hawaii explaining the TAT.  It is a long read and can be confusing, but it offers helpful information.
> 
> 
> 
> https://files.hawaii.gov/tax/legal/brochures/TAT_brochure.pdf


This is why I think TAT and TOT (Really called TSO in your attachment), are one in the same. So it would seem that when TAT goes up, so does TSO.

_*7. Why is occupancy of a time share subject to tax?*
The time share interval owners are occupying a transient accommodation and using state and county resources similar to other transient individuals whose rentals are subject to the TAT. The TAT imposed on the occupancy of the time share is called the TSO tax._


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## TXTortoise (Oct 7, 2021)

Don’t know what to tell you, but if you rent out a Maui timeshare all three distinct taxes are paid separately. Two by the owner to the state and one by the renter/occupant to the resort, that then pays the state.

Any embedded taxes in the MF are separate.


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## controller1 (Oct 7, 2021)

TXTortoise said:


> Don’t know what to tell you, but if you rent out a Maui timeshare all three distinct taxes are paid separately. Two by the owner to the state and one by the renter/occupant to the resort, that then pays the state.
> 
> Any embedded taxes in the MF are separate.



The only taxes embedded in the MF are property taxes.


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## dioxide45 (Oct 7, 2021)

TXTortoise said:


> Don’t know what to tell you, but if you rent out a Maui timeshare all three distinct taxes are paid separately. Two by the owner to the state and one by the renter/occupant to the resort, that then pays the state.
> 
> Any embedded taxes in the MF are separate.


So if you rent a week on Marriott.com, do you pay TSO (the daily fixed amount based on 50% of the MFs) at checkout?


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## controller1 (Oct 7, 2021)

dioxide45 said:


> So if you rent a week on Marriott.com, do you pay TSO (the daily fixed amount based on 50% of the MFs) at checkout?



No. When rented on Marriott.com it is treated as a hotel room and the tax fluctuates with the nightly charge.


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## tugcccsp (Oct 10, 2021)

When I rent out my unit at MMOC, I collect TAT on the base rental rate (10.25%, going to 13.25% in November) and GET (4% plus tax on top of tax = 4.1667%), and submit to the State of Hawaii.  Marriott collects an occupancy tax from my renter for each day of the stay, and Marriott pays that to the State of Hawaii.  Also, I pay maintenance fees, and there are some taxes included in the maintenance fees that Marriott pays to the respective government authorities.  For example only, if the rent is $1,000, I pay TAT of $102.50, and GET of $41.67.  I collect both from the renter, so the total I collect from the renter is $1,144.17.


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## dioxide45 (Oct 10, 2021)

tugcccsp said:


> When I rent out my unit at MMOC, I collect TAT on the base rental rate (10.25%, going to 13.25% in November) and GET (4% plus tax on top of tax = 4.1667%), and submit to the State of Hawaii.  Marriott collects an occupancy tax from my renter for each day of the stay, and Marriott pays that to the State of Hawaii.  Also, I pay maintenance fees, and there are some taxes included in the maintenance fees that Marriott pays to the respective government authorities.  For example only, if the rent is $1,000, I pay TAT of $102.50, and GET of $41.67.  I collect both from the renter, so the total I collect from the renter is $1,144.17.


That sounds like the state is double dipping. If I rent a week from Marriott.com, I only pay TAT on the nightly hotel rate. I don't pay both the TAT and the TSO (occupancy tax). Why is renting from an owner different than renting from Marriott.com (another owner that just happens to be the developer)?


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## dioxide45 (Oct 10, 2021)

Okay. I found this in the brochure linked in post #8

_26. I occupied my unit for seven days and rented it out for five days. Am I subject to the TSO tax for 12 day

No. Because you occupied the unit for only seven days, the daily fair market rental value would be multiplied by seven days to get the total fair market rental value that is subject to the TSO tax paid by the plan manager. Because you received income from the rental of the unit, you must be licensed under the TAT Law and the GET Law. You, not the plan manger, must report and pay the TAT at 10.25% on the gross rental proceeds (not the fair market rental value) from the rental of the time share. *Because you are subject to the TAT for the five days that the time share was rented, the plan manager is not liable for the TSO tax for those five days*. You must also report and pay the GET at 4% (plus a county surcharge if applicable) on the gross income from the rental of the time share._

So in the example of where an owner is renting out a timeshare week and collecting TAT, the plan manager (resort) should not be collecting TSO from your renter. It does seem that TAT and TSO should not both be collected from the same person. The question is, how do you prove to or notify, for example, Marriott or the resort that they shouldn't collect TSO?


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## controller1 (Oct 10, 2021)

dioxide45 said:


> Okay. I found this in the brochure linked in post #8
> 
> _26. I occupied my unit for seven days and rented it out for five days. Am I subject to the TSO tax for 12 day
> 
> ...



Does anyone have experience in renting their timeshare and collecting the TAT and GET and Marriott/Vistana _NOT_ collecting the TSO for the same period?


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## TXTortoise (Oct 11, 2021)

controller1 said:


> Does anyone have experience in renting their timeshare and collecting the TAT and GET and Marriott/Vistana _NOT_ collecting the TSO for the same period?



Doubt any owner would know, unless they ask their renter and assumption is daily tax applies to any occupant.

interesting observation above, though.


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## dioxide45 (Oct 11, 2021)

I think if I were a renter I would take my contract that shows the breakdown of charges and taxes and ask the property to not charge the TSO. Problem is, I doubt the resort would even know what to do or how to handle this in the system.


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## controller1 (Oct 11, 2021)

dioxide45 said:


> I think if I were a renter I would take my contract that shows the breakdown of charges and taxes and ask the property to not charge the TSO. Problem is, I doubt the resort would even know what to do or how to handle this in the system.



Yep I bet it would be uncharted territory for the property.


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## SGould (Jan 2, 2022)

I am renting out my Maui timeshare via Redweek next year.  Will I get paperwork to send the tax to the state?


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## bogey21 (Jan 3, 2022)

Does Maui really want tourists...

George


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## dioxide45 (Jan 3, 2022)

SGould said:


> I am renting out my Maui timeshare via Redweek next year.  Will I get paperwork to send the tax to the state?


I beleive if you are doing Full Service, Redweek may collect this tax automatically?


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## lynne (Jan 3, 2022)

All counties have adopted the new 3% tax when the state took away a portion of the TAT going to the counties.

The tax went into effect in Hawai'i County on the first:
*Beginning January 1, 2022*, the HCTAT is levied at a rate of 3 percent on every taxpayer that has taxable gross rental proceeds and/or total fair market rental value  attributable to the County of Hawai'i. The HCTAT is imposed in addition to the State TAT, which is currently levied at a rate of 10.25 percent. These amounts can be found on Forms TA-1 and TA-2 which must be filed with the State of Hawaii Department of Taxation (DOTAX).  CLICK HERE for a sample Form TA-1, the periodic return for taxable gross rental proceeds and total fair market rental value of timeshares.

Maui County:
Imposition of MCTAT
*Effective November 1, 2021*, the MCTAT is levied at a rate of 3 percent  on every taxpayer that has taxable gross rental proceeds  and/or total fair market rental value  attributable to the County of Maui.  The MCTAT is imposed in addition to the State TAT, which is currently levied at a rate of 10.25 percent.   These amounts can be found on Forms TA-1 and TA-2 which must be filed with the State of Hawaii Department of Taxation (DOTAX).  Click HereTRANSIENT ACCOMMODATIONS TAX (TAT)ANNOUNCEMENT NO. 2021-02Revised December 3, 2021 for a sample Form TA-1, the periodic return for taxable gross rental proceeds and total fair market rental value of timeshares.

*Imposition of Kaua‘i County Transient Accommodations Tax (KTAT) Beginning October 1, 2021*, the KTAT is levied at a rate of 3%1 on every taxpayer that has taxable gross rental proceeds2 and/or total fair market rental value3 attributable to the County of Kaua‘i. The KTAT is imposed in addition to the state transient accommodations tax (State TAT), which is currently levied at a rate of 10.25%4 . These amounts can be found on Forms TA-1 and TA-2 which must be filed with the State of Hawai‘i Department of Taxation (DOTAX). A sample Form TA-1, the periodic return for taxable gross rental proceeds and total fair market rental value of timeshares, is attached to this announcement for reference.


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## chemteach (Jan 3, 2022)

Wow.  Very confusing.  So no matter where you stay in Hawaii, the timeshare will collect taxes?  I haven't been to Hawaii since 2018.  Did all the tax begin after that?  I don't recall paying taxes to any resorts after staying there.  I used to go almost every summer.  Perhaps I am not remembering correctly.  Sounds a bit crazy for anyone renting out timeshares in Hawaii...


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## TXTortoise (Jan 4, 2022)

chemteach said:


> Wow.  Very confusing.  So no matter where you stay in Hawaii, the timeshare will collect taxes?  I haven't been to Hawaii since 2018.  Did all the tax begin after that?  I don't recall paying taxes to any resorts after staying there.  I used to go almost every summer.  Perhaps I am not remembering correctly.  Sounds a bit crazy for anyone renting out timeshares in Hawaii...


As the occupant you just pay the daily occupancy tax we have always paid.  Owners renting their unit are required to submit appx 17.25% of the gross rental amount to the state of Hawaii.


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## NTP66 (Jan 4, 2022)

SGould said:


> I am renting out my Maui timeshare via Redweek next year.  Will I get paperwork to send the tax to the state?


Not once have I ever received anything. I'd be shocked if even 50% of people renting their units send in anything, as well.


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## echino (Jan 4, 2022)

NTP66 said:


> Not once have I ever received anything. I'd be shocked if even 50% of people renting their units send in anything, as well.



Those who do, are getting double taxed, as the person staying is paying the tax at the front desk at check out, and then the owner is paying that tax again, and there is no mechanism to avoid double taxation.


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## tugcccsp (Jan 4, 2022)

There are three taxes required by the State of Hawaii, Occupancy, Accommodation, and General Excise.  They are three separate taxes.


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## dioxide45 (Jan 4, 2022)

tugcccsp said:


> There are three taxes required by the State of Hawaii, Occupancy, Accommodation, and General Excise.  They are three separate taxes.


It is really just two. Occupancy and Accommodation are somewhat the same. If you rent out a week or are a hotel you are supposed to collect and remit TAT (Accomodation) to the county. TSO or Timeshare Occupancy Tax is collected by the resorts when there is no nightly or weekly rental rate. This is charged nightly and is based on 50% of the maintenance fees. For an owner that collects and remits TAT, their guest is also being charged TSO on a nightly basis charged at checkout.



			https://files.hawaii.gov/tax/legal/brochures/TAT_brochure.pdf


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## tugcccsp (Jan 4, 2022)

When I rent out a unit in Maui, it appears the State of Hawaii is double dipping.  The renter pays Marriott's VOCC occupancy tax, and Marriott remits that to the State of Hawaii.  Also, the renter pays a Transient Accommodation Tax (TAT) and a General Excise Tax (GET) to me, and I remit those to the State of Hawaii through my Hawaii tax accounts.  I have Tax I.D.s for both the TAT and the GET.  Also, I pay Hawaii State Income tax on the gain.  I think that most people that rent out their units, don't pay the TAT(13.25%) and GET(4.00%).  The penalties, if caught, are significant.  I think they are in the $10,000 to $20,000 range for each occurrence.  I need to check that to make sure.


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## dioxide45 (Jan 4, 2022)

tugcccsp said:


> When I rent out a unit in Maui, it appears the State of Hawaii is double dipping.  The renter pays Marriott's VOCC occupancy tax, and Marriott remits that to the State of Hawaii.  Also, the renter pays a Transient Accommodation Tax (TAT) and a General Excise Tax (GET) to me, and I remit those to the State of Hawaii through my Hawaii tax accounts.  I have Tax I.D.s for both the TAT and the GET.  Also, I pay Hawaii State Income tax on the gain.  I think that most people that rent out their units, don't pay the TAT(13.25%) and GET(4.00%).  The penalties, if caught, are significant.  I think they are in the $10,000 to $20,000 range for each occurrence.  I need to check that to make sure.


This is what @ech mentioned in post #28 and I mentioned back in #15. The state is double dipping. Rental of timeshare units by owners should be excluded from TAT. Perhaps they still require remittance of GET, but they shouldn't have to pay TAT.


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## TXTortoise (Jan 7, 2022)

Whether it's effectively double-dipping or not, it is three distinct taxes of which two, TAT and GET, are the responsibility of the owner renting their week to pay Hawaii.


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## NTP66 (Jan 7, 2022)

If the state sent forms to applicable owners, I could see most people actually paying them.


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## TXTortoise (Jan 7, 2022)

NTP66 said:


> If the state sent forms to applicable owners, I could see most people actually paying them.



They don't know if you have rented your unit. Hawaii is also getting some of the big rental sites to pay directly for the owner, e.g., AirBnB, and others like VacationCandy.com are doing it as part of their process.  If they ever start auditing RedWeek or VRBO, I expect a lot of owners will have a surprise.  Some VRBO owners/brokers are including the tax in the final rental amount, but not apparent until you click through to the details.


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## NTP66 (Jan 7, 2022)

I'll be honest, the only reason I even knew about this was from a random TUG post.


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## dioxide45 (Jan 7, 2022)

TXTortoise said:


> Whether it's effectively double-dipping or not, it is three distinct taxes of which two, TAT and GET, are the responsibility of the owner renting their week to pay Hawaii.


Here is how the TSO is defined in the PDF I linked to;

_17. Why is occupancy of a time share subject to tax? The time share interval owners are occupying a transient accommodation and using state and county resources similar to other transient individuals whose rentals are subject to the TAT. The TAT imposed on the occupancy of the time share is called the TSO tax._

It seems that the intent for timeshares is to collect either TSO aor TAT. Owners renting their timeshare weeks that they own really shouldn't have to collect and remit TAT. If you rent from Marriott.com, you don't pay both but when you rent from any other owner you do.


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## TXTortoise (Jan 8, 2022)

dioxide45 said:


> Here is how the TSO is defined in the PDF I linked to;
> 
> _17. Why is occupancy of a time share subject to tax? The time share interval owners are occupying a transient accommodation and using state and county resources similar to other transient individuals whose rentals are subject to the TAT. The TAT imposed on the occupancy of the time share is called the TSO tax._
> 
> It seems that the intent for timeshares is to collect either TSO aor TAT. Owners renting their timeshare weeks that they own really shouldn't have to collect and remit TAT. If you rent from Marriott.com, you don't pay both but when you rent from any other owner you do.


Good point. In parsing this, it may be that TSO is targeted to owner usage and TAT is clearly for rentals. To your point, Marriott should not be collecting the daily occupancy tax for rental units. But we know no one is keeping track of any of this, so its easier to just collect occupancy from all that they aren’t renting directly and mandate all rentals owners pay TAT.


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## jmdickie (Jan 25, 2022)

I was shocked last week when we returned from two weeks in Maui. We paid 500. 00 american in taxes for those two weeks. We have travelled to Maui for the past 15 years and I never saw this kind of tax. I am not sure if the largest amount was because we purchased a getaway from II or not. The first week we exchanged our own unit for a week and the taxes were less.
Aston identified tax as GE $13 and TA $32/night 
Sure does add a lot to the already expensive vacation.


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## TXTortoise (Jan 30, 2022)

jmdickie said:


> I was shocked last week when we returned from two weeks in Maui. We paid 500. 00 american in taxes for those two weeks. We have travelled to Maui for the past 15 years and I never saw this kind of tax. I am not sure if the largest amount was because we purchased a getaway from II or not. The first week we exchanged our own unit for a week and the taxes were less.
> Aston identified tax as GE $13 and TA $32/night
> Sure does add a lot to the already expensive vacation.



That's interesting. You paid $250 night for the 'Getaway'? That looks like one of the II rental offers, though haven't looked at GetAways recently and know Aston rents a lot of weeks.
Aston is treating it as a pure rental and charging you for the TAT/GET. Never heard of this happening at a Marriott Maui, but then when is the last time anyone saw a GetAway for a Marriott on Hawaii


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## rickandcindy23 (Jan 30, 2022)

We leave in two weeks for 5.5 weeks.  Two weeks are exchanges into Westin through II.  Three weeks are our owned weeks at Hono Koa.  Four nights are through RCI Points, also at Hono Koa.  I will be interested in what we pay.  We are already paying huge taxes on the car rental through Costcotravel: 

Total Rental Price
$2,264.95
Base Car Rental
$1,585.58
Taxes and Fees
$679.37


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## jmdickie (Feb 6, 2022)

TXTortoise said:


> That's interesting. You paid $250 night for the 'Getaway'? That looks like one of the II rental offers, though haven't looked at GetAways recently and know Aston rents a lot of weeks.
> Aston is treating it as a pure rental and charging you for the TAT/GET. Never heard of this happening at a Marriott Maui, but then when is the last time anyone saw a GetAway for a Marriott on Hawaii


My post may have been confusing. We actually paid closer to $400 a night for the room. The $500 was taxes for the 2 weeks. Crazy really. This is for sure the most we have spent on accommodations in the 15 times we have travelled to Maui. Won't do it again.


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