Transient Accommodation Tax (TAT) is currently at 9.25%, what visitors pay for transient accommodations. The TAT most recent figures shows revenue of approx. 420 million annually. During the economic downturn, the Legislature capped the counties’ share of TAT at 103 million. The visitor industry, of course, is the most important economic source for all Hawaiian islands and the counties continue to try and get their fair share for the services they provide including beach, park, road maintenance, public safety and marketing. For example, the Mayor and other representatives from the County and Visitor Industry traveled to Japan at the beginning of December to meet with industry leaders and executives from Japan’s largest travel industries to promote travel to Maui County. Japanese Visitors currently account for less than 2% of Visitors to Maui County. During the Great Recession, travel to Maui County plummeted and the economic crash rippled through all industries. While travel is restored and tourism has been flourishing for the last few years, the Counties’ have not received more of the TAT that had been capped. According to Council Member Mike White, ‘more than a quarter of people on Maui at any given time are visitors. The state legislative session begins Jan. 20. HSAC (Hawaii State Association of Counties) and the individual counties will be submitting various legislative packages for consideration by the Legislature.’
See more info. and question and answers at this link: http://files.hawaii.gov/tax/legal/taxfacts/tf96-02.htm
