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HB1590
HOUSE OF REPRESENTATIVES
H.B. NO.
1590
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to VACATION RENTALS
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The Hawaii Revised Statutes is amended by
adding a new chapter to be appropriately designated and to read as follows:
"
Chapter
Short-Term Vacation Rental Enforcement
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� -1
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Definitions.
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As used in this chapter, unless
the context otherwise requires:
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"Department" means the department
of taxation.
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"Illegal short-term vacation
rental" means any short-term vacation rental that violates a county
ordinance related to short-term vacation rentals, minimum stay requirements, or
zoning.
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"Operator" means any person
operating a short-term vacation rental, whether as owner or proprietor, host,
lessee, sublessee, mortgagee in possession, licensee, or otherwise, or engaging
or continuing in any service business that involves short-term vacation
rentals.
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"Person" has the same meaning as
in section 231-1.
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"Short-term vacation rental" means a
room, apartment, suite, single family dwelling, shelter, vehicle, boat or other
watercraft, or the like rented to a transient that does not exceed a certain
number of days as established by the counties.
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"Short-term vacation rental broker"
means any person, including but not limited to persons who operate online
websites, online travel agencies, or online booking agencies, that offers,
lists, advertises, or accepts reservations or collects whole or partial payment
for short-term vacation rentals.
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� -2
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Liens; foreclosure.
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Any bank or lender with a lien upon an illegal short-term vacation
rental shall foreclose on the illegal short-term vacation rental if the lien is
not settled within five years after its placement.
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� -3
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County enforcement; evidence.
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Any
county enforcing an ordinance pertaining to short-term vacation rentals may
consider time-stamped screenshots of vacation rentals operating illegally on
short-term vacation rental broker platforms as evidence of the offering or
advertising of illegal short-term vacation rentals.
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� -4
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Short-term vacation rental brokers; data.
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(a)
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Every short-term vacation rental broker shall
file, on or before March 31 following the close of the calendar year, a
statement with the department that includes the following information for each
short-term vacation rental in the State that was offered, listed, advertised,
reserved, booked, paid for, or otherwise transacted on the short-term rental
broker's platform during the calendar year:
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(1)
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The name, user
identification number, profile identification number, address, social security
number or federal employer identification number, general excise tax license
number, and transient accommodations tax registration number of each operator;
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(2)
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The name, address, and unique property
identification number of each short-term vacation rental;
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(3)
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The annual gross
rental or gross rental proceeds the operator derives from each short-term
vacation rental; and
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(4)
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The tax map key
number of each short-term vacation rental.
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(b)
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The statement under subsection (a) shall be
in a form prescribed by the department.
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The department may require that the form be filed electronically.
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(c)
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Failure to comply with any provision in this
section shall be unlawful.
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The
department may issue a citation to any person who fails to comply with any
provision of this section.
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A citation
issued pursuant to this subsection shall include a monetary fine of no more
than $500 per violation.
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Any fine
assessed under this subsection shall be due and payable thirty days after
issuance, subject to appeal rights provided under this subsection.
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Citations may be appealed to the director or
the director's designee, and the determination of the director may be appealed
to the circuit court pursuant to chapter 91."
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SECTION
2
.
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Section 201B-1,
Hawaii Revised Statutes, is amended by amending the definition of
"destination management" to read as follows:
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"Destination
management" means a collaborative and coordinated process with public,
private, and community stakeholders to manage the various elements of a visitor
destination to:
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(1)
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Create, implement,
and monitor strategies that attract targeted visitor markets and improve
visitor experiences;
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(2)
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Improve natural
and cultural resources valued by Hawaii residents and visitors;
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(3)
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Develop and
maintain tourism-related infrastructure to prevent overcrowding and overtaxing
sites and resources; [
and
]
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(4)
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Ensure that the
provision of services enhances the visitor experience[
.
]
; and
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(5)
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Ensure that
vacation rentals are lawful and that all state and county laws and ordinances
pertaining to short-term vacation rentals are enforced.
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For the purposes of this paragraph,
"short-term vacation rentals" has the same meaning as in section
-1.
"
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SECTION
3
.
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Section
237D-2.5, Hawaii Revised Statutes, is amended to read as follows:
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"
[
[
]
�237D-2.5[
]
]
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County transient accommodations tax;
administration.
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(a)
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The county transient accommodations tax, upon
the adoption of a county ordinance and in accordance with the requirements of
section 46-20.7, shall be levied, assessed, and collected as provided in this
section on all gross rental, gross rental proceeds, and fair market rental
value taxable under this chapter.
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No
county shall set its transient accommodations tax at a rate greater than three
per cent of all gross rental, gross rental proceeds, and fair market rental
value taxable under this chapter.
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With
respect to the county transient accommodations tax, the applicable county
director of finance shall have all the rights and powers of the director of
taxation provided under this chapter.
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(b)
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The county transient accommodations tax, if adopted, shall be imposed on
the gross rental, gross rental proceeds, and fair market rental value of all
written contracts that require the passing on of the taxes imposed under this
chapter; provided that if the gross rental, gross rental proceeds, and fair
market rental value are received as payments beginning in the taxable year in
which the taxes become effective, on contracts entered into prior to the
adoption of the ordinance pursuant to section 46-20.7, and the written
contracts do not provide for the passing on of increased rates of taxes, the
county transient accommodations tax shall not be imposed on the gross rental,
gross rental proceeds, and fair market rental value covered under the written
contracts.
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The county transient
accommodations tax shall be imposed on the gross rental, gross rental proceeds,
and fair market rental value from all contracts entered into on or after the
adoption of the ordinance pursuant to section 46-20.7, regardless of whether
the contract allows for the passing on of any tax or any tax increases.
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(c)
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No county transient accommodations tax shall be established on any form
of accommodation that is exempt from the taxes imposed by this chapter pursuant
to section 237D-3.
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(d)
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The counties may use any revenue from the
county transient accommodations tax for the enforcement of short-term vacation
rentals.
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For the purposes of this
subsection, "short-term vacation rental" has the same meaning as in
section -1.
"
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SECTION 4.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2026-2027 for the department of
taxation to collect taxes owed by illegal short-term vacation rental operators.
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The sum appropriated shall be
expended by the department of taxation for the purposes of this Act.
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SECTION 5.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.
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SECTION 6.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 7.
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This Act shall take effect on July 1, 2026.
INTRODUCED BY:
_____________________________
Report Title:
Short-term
Vacation Rentals; Enforcement; Liens; Screenshots; Fines; Destination
Management; County Transient Accommodations Tax; Appropriation
Description:
Requires
banks and lenders with a lien upon an illegal short-term rental to foreclose if
the lien is not settled within five years.
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Allows counties to use time-stamped screenshots as evidence for the
enforcement of short-term vacation rentals.
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Requires short-term vacation rental brokers to provide certain data to
the Department of Taxation on or before 3/31 following the close of the
calendar year.
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Authorizes the Department
of Taxation to issue fines.
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Includes short-term
vacation rental enforcement in the Hawaii Tourism Authority's plans, practices,
and efforts involving destination management.
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Clarifies that the counties may use revenue from the County Transient
Accommodations Tax for the enforcement of short-term vacation rentals.
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Appropriates funds.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.