Renting out your Maui Ocean Club unit

[drlee]

The presenter at this morning's webinar confirmed that there IS a special occupancy tax for units renter to third parties in Hawaii. The property does NOT collect these taxes, only the traditional occupancy tax. This extra tax is to be paid by the person renting, whether secured by weeks or points. Collection from the person renting is up to the owner. These taxes are to be paid quarterly. The resort sent emails late last year to this effect, but owners/points people don't know of this requirement, or are ignoring it. To each their own, but the reported fine for ignoring this is significant. Just food for thought. If you search TUG, someone has posted the brochure from the state that covers this rule.

 

[MOXJO7282]

There is no way they can monitor individual owners so I think Redweek, AirBnb and the like will start collecting this tax and sending it to the state. It's a disgrace that we spend so much to purchase our weeks and all they do is tax the heck out of the poor TS owner because we're an easy target.

 

[ThomasWentz]

I recently rented a week at Maui Ocean Club on VRBO and they didn't add any taxes that I could see.

 

[TheTimeTraveler]

This tax won't affect your Timeshare unless and until you rent it out, and then it is sketchy at best as how to monitor who is actually occupying your Villa at anytime.

I understand that the State of Hawaii depends on the travel industry as a "gravy train", but they should come up with another way to generate revenue other than taking advantage of the tourist industry (and primarily affecting folks from outside the State).

Maybe a one cent gasoline tax across the board would generate a lot more money and won't only affect the tourists. Seems to be a much fairer way to generate revenue without placing a paperwork burden on those who rent out their properties.

Just me venting........




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[TXTortoise]

Hawaii Governor vetoed the bill last year that would have required VRBO/AirB&B to collect the TAT (10.25%) and GET (4% Maui) on rentals at time of rental. Even if you pay both taxes, if you don't break them out as +Costs over the rental, you pay it on the gross, before any fees and commissions, so your net is even less.

It would level the playing field a bit if they required reporting and payment by the brokers, but would probably just increase their commissions/fees to accommodate the overhead.

That said, the penalties are now significant, if you attract their attention.