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Bill

HB 889

RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.

2026 Regular Session Introduced by Tina Grandinetti and 2 co-sponsors

HB 889 modifies Hawaii's transient accommodations tax structure, affecting revenue generation from short-term lodging and its distribution among state and county governments.

Carried over to 2026 Regular Session.
#taxcredit #transientaccommodationstax
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Bill Summary · HB 889

Legislative bill overview

HB 889 modifies Hawaii's transient accommodations tax (TAT), which is levied on short-term lodging rentals like hotels and vacation properties. The bill has been referred to committees on Tourism, Economic Development, and Finance, suggesting it involves changes to tax rates, distributions, or administration of this significant revenue source.

Why is this important

The transient accommodations tax generates substantial revenue for Hawaii state government and is a major funding mechanism for tourism infrastructure and services. Changes to TAT structure affect both the tourism industry's operating costs and the state's ability to fund public services that depend on this revenue stream.

Potential points of contention

  • Revenue distribution disputes – TAT funds support multiple interests (state general fund, county governments, tourism promotion); changes to allocation formulas create winners and losers among stakeholders
  • Competitive impact on tourism industry – Increases to tax rates may be passed to visitors or absorbed by hospitality businesses, affecting Hawaii's competitiveness with other destinations
  • County vs. state funding balance – The bill's specific provisions likely shift resources between state and county governments, creating potential disagreements over local control and funding autonomy

Compiled from official sources — confirm details with the bill’s official record.

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