Hawaii legislator’s push for Airbnb taxation bill a success

Hawaii Senate Bill 1292 just squeaked by passing which will allow the Aloha State to collect transient accommodation and general excise taxes from short-term rentals with a vote of 13 to 12. This bill means that places like Airbnb and HomeAway will collect taxes on behalf of the state. Hawaii Governor Ige will now receive the bill for his consideration.

Although it is illegal to run short-term rentals of less than 30 days in the state, many homeowners are operating these rentals outside the law and skipping on paying any taxes. Hawaii lawmakers are anxious to get their budget feeding off the anticipated $46 million the taxes would pull in.

After the Senate voted the bill down in a 12 to 12 vote this past Friday, the Senate Ways and Means Chairman, Senator Donovan Dela Cruz, a supporter of the bill known as the Airbnb bill, stated before legislators that around 15 other unrelated bills would be placed at risk if the state failed to pass the Airbnb bill. The Senator said “these needed programs will get funded” if the Airbnb bill passes.

Dela Cruz said Hawaii needs the money and that the debate over the Airbnb bill was delayed so late in the session that the Senate had no other choice but to pass it for financial reasons.

Today, Senator Stanley Chang, who had initially voted against the bill, made a motion for it to be reconsidered, allowing the new vote, however, Senator Chang then voted against the measure once again. It was Senator Clarence Nishihara, who chairs the Senate Public Safety, Intergovernmental and Military Affairs Committee who changed his position and voted for the bill, allowing it to move forward.

Senator Laura Thielen says the Airbnb bill will put the state in the position of allowing “Internet platforms to act as a shield for illegal operations,” as the bill does not permit information that is collected from vacationers to be given to local governments to aid them in enforcement efforts.