(AP) — Honolulu’s mayor has signed legislation adding a 3% surcharge to the state’s levy on short-term rentals, making it the latest Hawaiʻi county to adopt its own hotel tax. The Honolulu Star-Advertiser reports officials estimate the new tax could generate about $86 million a year. The surcharge will be imposed on top of the state’s 10.25% tax on gross rental proceeds from hotels, vacation rentals and other transient accommodations. Honolulu will allocate the money to its general fund, the rail project and natural resources. It adopted the surcharge after state lawmakers stopped a sharing portion of the state’s hotel tax revenue with the counties.
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