HB889 • 2026

RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: IWAMOTO, GRANDINETTI, PIERICK, WARD
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on the amount of money available for refunds or what happens if there are more claims than funds.

Hawaii Transient Accommodations Tax Credit

This bill creates a refundable tax credit for Hawaii residents who pay the transient accommodations tax when they stay in hotels within the state.

What This Bill Does

Provides Hawaii taxpayers with a refundable transient accommodations tax credit equal to the amount of transient accommodations taxes incurred and paid within the State during the taxable year.
Allows taxpayers to claim this credit on their individual income tax return.
Requires the director of taxation to create forms for claiming the credit and set rules for its administration.
Limits refunds to amounts greater than or equal to $1.

Who It Names or Affects

Hawaii residents who pay transient accommodations tax when staying in hotels within the state.
Taxpayers filing individual income tax returns in Hawaii.

Terms To Know

Transient Accommodations Tax: A tax charged to people who stay in hotels or similar short-term lodging places in Hawaii.
Refundable Tax Credit: A credit that can reduce a taxpayer's liability and, if the credit is larger than the tax owed, result in a refund from the government.

Limits and Unknowns

The bill applies to taxable years beginning after December 31, 2024.
It does not specify how much money will be available for refunds or what happens if there are more claims than funds.
The exact forms and rules for claiming the credit have yet to be determined.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-23 H
Referred to TOU, ECD, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.
Transient Accommodations Tax; Tax Credit
Provides Hawaii taxpayers with a refundable transient accommodations tax credit.

Current Bill Text

Read the full stored bill text

HB889

HOUSE OF REPRESENTATIVES

H.B. NO.

889

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating to the transient accommodations tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
�
The legislature finds that the
transient accommodations tax, established by Act 340, Session Laws of Hawaii 1986,
was intended to provide revenue to the counties to offset the impacts of
visitor activities on county infrastructure and services.
�
The legislature further finds that when
Hawaii residents choose to vacation within the State, they are also subject to
the transient accommodations tax, effectively creating a double taxation burden
on residents who are already supporting the overall cost of state and county
infrastructure and public services through various other forms of taxation,
including but not limited to income tax, general excise tax, and property tax.

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Accordingly,
the purpose of this Act is to create a refundable tax credit for the State's
residents equal to the amount of transient accommodations tax paid for
accommodations within the State.

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SECTION 2.
�
Chapter 235, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�235-
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Transient accommodations tax credit.
�
(a)
�
Any taxpayer who files an
individual income tax return may claim a refundable transient accommodations
tax credit against the taxpayer's individual income tax liability equal to the
full amount of transient accommodations taxes incurred and paid within the
State during the taxable year.

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(b)
�
If
the tax credit claimed by the taxpayer under this section exceeds the amount of
the income tax payments due from the taxpayer, the excess of credit over
payments due shall be refunded to the taxpayer; provided that the tax credit
properly claimed by the taxpayer who has no income tax liability shall be paid
to the taxpayer; provided further that no refunds or payments on account of the
tax credit allowed by this section shall be made for amounts less than $1.

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(c)
�

The director of taxation shall prepare any forms that may be necessary
to claim a credit under this section, may require proof of the claim for the
tax credit, and may adopt rules pursuant to chapter 91.

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(d)
�

All the provisions relating to assessments and refunds under this
chapter and under section 231-23(c)(1) shall apply to the tax credit under this
section.

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(e)
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Claims for the tax credit under this section, including any amended
claims, shall be filed on or before the end of the twelfth month following the
taxable year for which the claim may be claimed.
"

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SECTION
3.
�
New statutory material is
underscored.

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SECTION 4.
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This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024.

INTRODUCED BY:

_____________________________

Report Title:

Transient
Accommodations Tax; Tax Credit

Description:

Provides Hawaii taxpayers with a refundable transient
accommodations tax credit.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.