Maui Business

House Defers Vacation Rental Bill

March 13, 2012, 9:19 AM HST
* Updated March 15, 10:02 AM
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Vacation rental bill would be a major change in the way the industry operates. File photo.

By Sonia Isotov

The House Committee on Tourism has deferred the controversial vacation rental bill that would have made it law for out-of-state vacation rental owners to use a local rental management company.

On Monday, lawmakers deferred HB 1706 after considering more than 250 pages of testimony both in support and opposed from the public. The majority of testimony was found to be against enacting the bill.

The main reasons against the bill were the constitutionality of the bill as well as the lack of enforcement contained in the bill.

Those in favor maintained that the bill would ensure that owners would comply with the general excise tax and transient accommodation taxes. The state department of Taxation and Consumer Affairs led in this regard noting that a sizable number of owners do not comply with taxation rules.

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