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HB2330
HOUSE OF REPRESENTATIVES
H.B. NO.
2330
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO HOSTING PLATFORMS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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Chapter 237,
Hawaii Revised Statutes, is amended by adding a new section to be appropriately
designated and to read as follows:
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"
�237-
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Hosting
platforms as tax collection agent.
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(a)
�
A hosting platform that
earns service fees for providing booking services shall register with the
department of taxation as a tax collection agent under this section, as a
condition precedent to providing booking services.
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Upon registration, the department of taxation
shall issue to the tax collection agent a separate license for its activities
in that capacity, with respect to taxes due under this chapter on behalf of its
operators and, if applicable, for taxes payable under this chapter for its own
business activities.
�
The director of
taxation may prescribe the form and manner of registration and may require any
information necessary for the administration of this section.
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(b)
�
In addition to its own responsibilities under this chapter, a tax
collection agent shall report, collect, and pay over the taxes due under this
chapter on behalf of all operators for whom the tax collection agent provides
booking services; provided that the tax collection agent's obligation to
report, collect, and pay taxes on behalf of its operators shall apply solely to
transient accommodations located in the State for which booking services were
provided by the tax collection agent.
�
For all other business activities not related to the booking services,
each operator shall remain subject to all applicable requirements of title 14
as if this section did not apply.
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(c)
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If a tax collection agent fails to collect and pay the tax as required
under subsection (b), the tax collection agent shall be liable to pay to the
State any unpaid portion of the amount of tax that was required to be paid
under subsection (b), together with penalties and interest as provided by law.
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(d)
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A tax collection agent shall file periodic returns in accordance with
section 237-30 and annual returns in accordance with section 237-33.
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Each annual return required under section
237-33 shall include, in a form prescribed by the department of taxation, the
following information for each operator on whose behalf the tax collection
agent is required to report, collect, or pay over taxes due under this chapter:
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(1)
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Name;
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(2)
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Social
security number or federal employer identification number;
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(3)
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Address
of each transient accommodation;
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(4)
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General
excise tax license number;
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(5)
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Transient
accommodations tax registration number;
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(6)
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Amount
of general excise tax paid on behalf of the operator; and
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(7)
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Amount
of transient accommodations tax paid on behalf of the operator.
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(e)
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For the purposes of this section, and unless the context otherwise
requires:
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"Booking service" has the same
meaning as in section 237D‑1.
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"Hosting platform" has the
same meaning as in section 237D‑1.
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"Operator" has the same
meaning as in section 237D-1.
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"Tax collection agent" has the
same meaning as in section 237D-1.
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"Transient accommodations" has
the same meaning as in section 237D-1."
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SECTION 2.
�
Chapter 237D, Hawaii Revised Statutes, is amended by adding a new
section to be appropriately designated and to read as follows:
����
"
�237D-
��
��
Hosting
platform as tax collection agent.
�
(a)
�
A hosting platform that
earns service fees for providing booking services shall register with the
department of taxation as a tax collection agent under this section, as a
condition precedent to providing booking services.
�
Upon registration, the department of taxation
shall issue to the tax collection agent a separate certificate of registration
for its activities in that capacity, with respect to taxes due under this chapter
on behalf of its operators and, if applicable, for taxes payable under this
chapter for its own business activities.
�
The director of taxation may prescribe the form and manner of
registration and may require any information necessary for the administration
of this section.
����
(b)
�
In addition to its own responsibilities under this chapter, a tax
collection agent shall report, collect, and pay over the taxes due under this
chapter on behalf of all operators for whom the tax collection agent provides
booking services; provided that the tax collection agent's obligation to
report, collect, and pay taxes on behalf of its operators shall apply solely to
transient accommodations located in the State for which booking services were
provided by the tax collection agent.
�
For all other business activities not related to the booking services,
each operator shall remain subject to all applicable requirements of title 14
as if this section did not apply.
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(c)
�
If a tax collection agent fails to collect and pay the tax as required
under subsection (b), the tax collection agent shall be liable to pay to the
State any unpaid portion of the amount of tax that was required to be paid
under subsection (b), together with penalties and interest as provided by law.
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(d)
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A tax collection agent shall file periodic returns in accordance with
section 237D-6 and annual returns in accordance with section 237D-7.
�
Each annual return required under section
237D-7 shall include, in a form prescribed by the department of taxation, the
following information for each operator on whose behalf the tax collection
agent is required to report, collect, or pay over taxes due under this chapter:
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(1)
�
Name;
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(2)
�
Social
security number or federal employer identification number;
����
(3)
�
Address
of each transient accommodation;
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(4)
�
General
excise tax license number;
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(5)
�
Transient
accommodations tax registration number;
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(6)
�
Amount
of general excise tax paid on behalf of the operator; and
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(7)
�
Amount
of transient accommodations tax paid on behalf of the operator.
"
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SECTION 3.
�
Section 231-8.5, Hawaii Revised Statutes, is amended by amending
subsection (b) to read as follows:
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"(b)
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If the requirements of subsection (c) are satisfied, the department may
require electronic filing of any tax return, application, report, or other
document required under the provisions of title 14 administered by the
department for the following taxpayers:
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(1)
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For
withholding tax filings required under chapter 235, only employers whose total
tax liability under sections 235-61 and 235-62 for the calendar or fiscal year
exceeds $40,000;
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(2)
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For
income tax filings required under chapter 235, only taxpayers who are subject
to tax under section 235-71, 235-71.5, or 235-72;
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(3)
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For
general excise tax filings required under chapter 237, only taxpayers whose
total tax liability under chapter 237 for the calendar or fiscal year exceeds
$4,000;
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(4)
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For
transient accommodations tax filings required under chapter 237D, only [
operators
and plan managers
]
taxpayers
whose total tax liability under chapter
237D for the calendar or fiscal year exceeds $4,000; and
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(5)
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For
filings required under the following chapters, all taxpayers subject to tax
under those chapters:
���������
(A)
�
236E;
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(B)
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239;
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(C)
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241;
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(D)
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243;
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(E)
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244D;
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(F)
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245;
and
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(G)
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251."
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SECTION 4.
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Section 237-30.5, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:
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"(a)
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Every person authorized under an agreement by the owner of real property
located within this State to collect rent on behalf of the owner shall be
subject to this section[
.
]
; provided that this section shall not
apply to any hosting platform registered as a tax collection agent under
section 237‑
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.
"
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SECTION 5.
�
Section 237-41, Hawaii Revised Statutes, is amended to read as follows:
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"
�237-41
�
Records to be kept; examination.
�
(a)
�
Every taxpayer shall keep in the English language within the State, and
preserve for a period of three years, suitable records of gross proceeds of
sales and gross income, and such other books, records of account, and invoices
as may be required by the department of taxation, and all such books, records,
and invoices shall be open for examination at any time by the department or the
Multistate Tax Commission pursuant to chapter 255, or the authorized representative
thereof.
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(b)
�
Each tax collection agent registered under section 237-
���
shall maintain records for each operator
for whom the agent provides booking services, including the operator's name,
the address of the transient accommodation, the period of occupancy, the gross
rental or gross rental proceeds, and the taxes collected and remitted on behalf
of the operator.
�
The records shall be
preserved and made available for inspection as provided in subsection (a).
�
Nothing in this subsection shall be construed
to diminish or eliminate the responsibilities of taxpayers under this section.
"
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SECTION 6.
�
Section 237-41.5, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:
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"(a)
�
There shall be personal liability for the taxes imposed under this
chapter as provided in this section for the following amounts of gross income
or gross proceeds:
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(1)
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Any
amount collected as a recovery of the taxpayer's liability under this chapter,
where the amount is passed on as the tax owed by the taxpayer under this
chapter for the transaction and is separately stated or accounted for in a
receipt, contract, invoice, billing, or other evidence of the business activity;
or
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(2)
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An
amount equal to the tax liability under this chapter on a transaction where a
taxpayer does not separately state or account for the amount as a tax recovery
as provided in paragraph (1).
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For
purposes of this paragraph, the amount of the imputed tax liability is the
result of multiplying the gross income or gross proceeds received in the
transaction by the tax rate[
.
]
; or
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(3)
�
Any
amount collected by a tax collection agent under section 237-
��
.
The amounts
under paragraphs (1) [
and
]
,
(2)
, and (3)
shall be held in
trust for the benefit of the State and for payment to the State in the manner
and at the time required by this chapter."
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SECTION 7.
�
Section 237D-1, Hawaii Revised Statutes, is amended by adding three new
definitions to be appropriately inserted and to read as follows:
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"Booking service" means
any service, including a reservation or payment service, provided by a person
or entity that facilitates a transient accommodations transaction between an
operator and a prospective transient or occupant, and for which the person or
entity collects or receives, directly or indirectly, through an agent or
intermediary, a fee in connection with the reservation or payment service
provided for the transient accommodations transaction.
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"Hosting platform" means a
person or entity that participates in the transient accommodations business by
providing, and collecting or receiving a fee for, booking services through
which an operator may offer transient accommodations.
�
"Hosting platform" includes a
person or entity that, usually though not necessarily, provides the booking
services through an online or digital platform that allows an operator to
advertise transient accommodations and enables a renter to arrange, reserve, or
pay for the rental of transient accommodations, whether payment is made
directly to the operator or through the hosting platform.
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"Hosting platform" does not include
a marketplace facilitator as defined in section 237-4.5.
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"Tax collection agent" means a
person or entity that collects money and taxes from a renter owed to an
operator, and the portion of the amounts representing taxes does not constitute
the tax collection agent's own income.
"
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SECTION 8.
�
Section 237D-8.5, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:
����
"(a)
�
Every person authorized under an agreement by the owner of transient
accommodations located within this State to collect rent on behalf of the owner
shall be subject to this section[
.
]
; provided that this section shall
not apply to any hosting platform registered as a tax collection agent under
section 237D-
��
.
"
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SECTION 9.
�
Section 237D-12, Hawaii Revised Statutes, is amended to read as follows:
����
"
�237D-12
�
Records to be kept; examination.
�
(a)
�
Every taxpayer shall keep in the English language within the State, and
preserve for a period of three years, suitable records of gross rental, gross
rental proceeds, or fair market rental value relating to the business taxed
under this chapter, and such other books, records of account, and invoices as
may be required by the department, and all such books, records, and invoices
shall be open for examination at any time by the department or the Multistate
Tax Commission pursuant to chapter 255, or the authorized representative
thereof.
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(b)
�
Each tax collection agent registered under section 237D-
���
shall maintain records for each operator
for whom the agent provides booking services, including the operator's name,
the address of the transient accommodation, the period of occupancy, the gross
rental or gross rental proceeds, and the taxes collected and remitted on behalf
of the operator.
�
The records shall be
preserved and made available for inspection as provided in subsection (a).
�
Nothing in this subsection shall be construed
to diminish or eliminate the responsibilities of taxpayers under this section.
"
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SECTION 10.
�
If any provision of this Act, or the application thereof to any person
or circumstance, is held invalid, the invalidity does not affect other
provisions or applications of the Act that can be given effect without the
invalid provision or application, and to this end the provisions of this Act
are severable.
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SECTION 11.
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Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.
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SECTION 12.
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This Act, upon its approval, shall take effect on January 1, 2027.
INTRODUCED BY:
_____________________________
BY REQUEST
Report Title:
DoTAX; Hosting Platform; Tax Collection Agent; General
Excise Tax, Transient Accommodations Tax
Description:
Requires hosting platforms that earn service fees for
providing booking services for transient accommodations to register with the
Department of Taxation as tax collection agents and report, collect, and remit
general excise and transient accommodations taxes on behalf of operators.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.