Maui Room Tax has skyrocketed

[vacationtime1]

We just stayed at WKORV for two weeks, the first week in a one bedroom "deluxe" unit and the second week in a two bedroom "premium" unit. The tax rates (by which I mean the daily occupancy taxes charged by the State of Hawaii and the County of Maui -- not the property taxes included in MF's) have increased and appear inconsistent.

The daily taxes for the two bedroom premium unit were $23.28 (state) and $6.82 (county) for a total of $30.10/day.

The daily taxes for the one bedroom deluxe unit were $28.45 (state) and $8.32 (county) for a total of $36.77/day.

That the tax on the two bedroom is less than the tax on a one bedroom makes absolutely no sense. These taxes are a derivative of MF's, so the one bedroom should be less than the two bedroom.

Separately, these taxes are no longer negligible; it's an additional $210 - $260 per week, after paying MF's of about $3,500.

 

[echino]

The occupancy tax is 13.25% of the half of the maintenance fees. The problem is the maintenance fees are not known for the studio portion because there are no standalone studio ownerships. So the resort has discretion how to allocate the 2br fees between the studio and 1br portion for the purpose of calculating occupancy taxes. They allocate a very small amount to the studio, with the bulk to 1br. And since deluxe fees are a lot higher than premium fees, the 1br deluxe daily tax becomes higher than 2br premium tax.

 

[vacationtime1]

The occupancy tax is 13.25% of the half of the maintenance fees. The problem is the maintenance fees are not known for the studio portion because there are no standalone studio ownerships. So the resort has discretion how to allocate the 2br fees between the studio and 1br portion for the purpose of calculating occupancy taxes. They allocate a very small amount to the studio, with the bulk to 1br. And since deluxe fees are a lot higher than premium fees, the 1br deluxe daily tax becomes higher than 2br premium tax.

If that's how they handle it, it means they are allocating 88.5% of the occupancy tax to the one bedroom portion of the deluxe units and only 11.5% to the studio portion. Possible, but irrational.

(MF's on the deluxe units are 38% higher than MF's on the premium units for those who wish to check my math.)

 

[mjm1]

Separately, these taxes are no longer negligible; it's an additional $210 - $260 per week, after paying MF's of about $3,500.

Robert, we were just discussing this as well after staying a few night at the north property and then at MOC Lahaina/Napili towers.

The taxes for a 1BR at the north property were $28.56 ($6.46 + 22.10) and $36.72 at MOC (no breakout provided.)

It does add up over a weekly or longer stay. Between that and the cost of rental cars it makes one wonder about returning.

 

[echino]

If that's how they handle it, it means they are allocating 88.5% of the occupancy tax to the one bedroom portion of the deluxe units and only 11.5% to the studio portion. Possible, but irrational.

(MF's on the deluxe units are 38% higher than MF's on the premium units for those who wish to check my math.)

Yes, and they do that possibly based on standalone 1br maintenance fees being about 88.5% of the 2br fees. There are standalone 1br unit ownerships in the south, but only standard, not deluxe.

 

[dioxide45]

The occupancy tax is 13.25% of the half of the maintenance fees. The problem is the maintenance fees are not known for the studio portion because there are no standalone studio ownerships. So the resort has discretion how to allocate the 2br fees between the studio and 1br portion for the purpose of calculating occupancy taxes. They allocate a very small amount to the studio, with the bulk to 1br. And since deluxe fees are a lot higher than premium fees, the 1br deluxe daily tax becomes higher than 2br premium tax.

Why wouldn't they just allocate the fees between the 1BRT and studio based on square footage?

 

[echino]

Why wouldn't they just allocate the fees between the 1BRT and studio based on square footage?

They probably cannot, because 1br standard exists, with its own fees which are about 85% of the 2br lockoff fees, and they have to calculate the tax for the 1br standard based on those fees.

 

[philemer]

Maui County increased their occupancy taxes about 2 yrs I believe. Higher than the other counties.

Maui County surcharge and GET is 4.5% as of Jan. 1, 2024

www.mauicounty.gov

 

[dioxide45]

They probably cannot, because 1br standard exists, with its own fees which are about 85% of the 2br lockoff fees, and they have to calculate the tax for the 1br standard based on those fees.

That makes sense.