#TAT

A new list of laws take effect on Jan. 1, 2026. House Speaker Nadine K. Nakamura shared a list of laws that go into effect in the New Year.

The council will provide crucial guidance on how the newly enacted “Green Fee” funds are allocated to bolster Hawaiʻi’s environmental resilience and sustainable tourism. 

The Green Fee increases the state’s transient accommodations tax from 10.25% to 11%, which is expected to generate about $100 million annually. For example, a $400 hotel room will incur an additional $3 per night in taxes, with proceeds dedicated to protecting Hawaiʻi’s natural and cultural resources.

Gov. Josh Green, M.D., heralded the Legislature’s passage of SB1396, creating the climate impact fee, or “green fee,” to help the islands to mitigate the impacts of climate change and the roughly 10 million visitors welcomed to Hawaiʻi each year.

The Grassroot Institute of Hawaiʻi hailed the 2025 Legislature’s passage this week of bills intended to increase the state’s housing stock, speed up the recovery of Lahaina and increase government accountability. 

Maui County’s Department of Finance has made some progress by fully staffing a section devoted to managing and collecting payments of transient accommodations taxes that began in November 2021. However, the department has not yet acquired computer software needed as a long-term solution to what auditor N&K CPAs Inc. determined as a “material weakness” among findings of an annual comprehensive financial audit completed in March.

Maui County’s Department of Finance was under-staffed and ill-prepared to collect transient accommodations tax money beginning in November 2021 when a state law allowing the county to tap millions of visitor-generated revenue went into effect, according to a report by the Office of the County Auditor.

First reading of Maui County’s fiscal year 2021 budget has been moved from Friday, May 22 to Tuesday, May 26. Council Chair Alice L. Lee, who made the announcement, said it is to allow for inclusion of additional funding from the state and federal government. This includes an estimated $66 million from the Coronavirus Relief Fund, approved by Congress in the CARES Act, and additional money in transient accommodations tax revenue.

The Maui package includes 15 bills covering a wide range of issues, including the taxation authority and revenue, roadway safety, the regulation of hosting platforms for unpermitted vacation rentals and environmental issues like invasive species and sea-level rise.

Governor David Ige will veto 18 of 20 bills on his Intent to Veto list, and allow two items to become law without his signature.

Hawaii Tourism CEO: “Make no mistake, HTA will be forced to make significant cuts to its marketing programs that support Hawaiʻi’s number one industry, and…”

For Maui that means there’s additional $15 million in TAT revenues, going from the current $23.4 million to $38.3 million.

Arakawa, provided a list of legislative priorities, which include: Front Street Apts; funding for Kula Ag park; and CIP funds for a central Maui transit hub.

The rail funding bailout bill passed out of the House today in a 31-15 vote, and now heads to Governor David Ige, who is expected to sign off on the measure.

The state House committees on Transportation and Finance on Wednesday passed a rail funding bill that continues to advance during a special legislative session.

Legislative leaders have reached an agreement to fund Honolulu’s rail transit by raising the state’s TAT and extending Oʻahu’s GET surcharge for 3 more years.

Hawai‘i State Senators today approved 318 bills on third reading. Sixty-six bills were approved earlier on third reading for a total of 384 measures this…

The Hawaiʻi State Association of Counties, which represents the four counties is introducing 10 bills in its 2017 legislative package…

“Be careful what you wish for. You may find an advantage on one hand, and a disadvantage on the other; but for purposes of meeting community needs, service needs, the division of the revenues from travel and tourism really should be discussed,” said Governor Neil Abercrombie.

Currently Maui’s TAT revenue from hotel rooms is capped at $21.2 million, but distribution would increase by $16.4 million if the cap were removed, raising potential TAT revenues to $37.6 million.