Maui to Impose New Hotel Tax due to Influx of Tourists

Maui to Impose New Hotel Tax due to Influx of Tourists

© Engin Yapici - Unsplash

Maui to Impose New Hotel Tax due to Influx of Tourists

Maui to Impose New Hotel Tax due to Influx of Tourists

© Engin Yapici - Unsplash

Reasons for change
Before the new law, Hawaii had a ten per cent hotel tax rate, and the state then distributed tax revenue to five counties Maui, Honolulu, Hawaii, Kalawao and Kauai. 

However, Oahu in Honolulu typically receives most of the funds due to its population size, even though Maui attracts more tourists per capita. The new law allows Hawaii's counties to collect a three per cent tax from visitors staying at any short-term rentals and keep the revenue for local needs. 

The push for more revenue
As tourism has exploded in Maui, causing Maui's mayor Michael Victorino to beg airlines for visitor pause, officials on Maui are moving quickly to implement the new tax on tourists. "This will help tremendously," Maui council chair Alice Lee said, "Instead of $23 million, we'll probably receive in the neighbourhood of $50 to $70 million." Now counties will receive revenue based on the number of visitors and Maui stands to benefit most from the new law.