08-26-2013, 11:11 AM
quote:
Originally posted by David M
Would just remind you that less than 6 month rent is subject to TATax.
This is not accurate. The Transient Accommodations Tax applies to ALL rentals under 180 days... hotel, condo, apartment, house... IF you have a home elsewhere. The key word is "Transient," and here is how the State of Hawai'i defines it...
[quote]A transient accommodation is a hotel room or suite, apartment, condominium, house, beach house, or similar living accommodation which is rented for less than 180-consecutive days by and regularly furnished to a transient (a person who has a permanent home elsewhere).
So if you live in Minnesota, or Oahu, for that matter, and rent a condo for 30 days on the Island of Hawai'i, say, your rental is liable for the 9.25% TAT in addition to the usual 4.166% GET, which is assessed on ALL rentals... even long term leases.
But, if you have sold your mainland house, and are staying in that same Hawai'i condo while searching for a permanent home here, only the GET is owed, NOT the TAT. Note: you may need to explain this to your landlord or innkeeper, and even refer them to the State tax website, because many people are confused about this. No wonder, it IS VERY CONFUSING!
Based on many years worth of posts here and on other forums, I would add the following caveats...
Never make more than a 30 day commitment to a place you have not seen in person. There are many, many valid reasons for this warning. Do not ignore it.
Be very cautious with rental listings on Zillow and on Craigslist. They are full of scams, some as simple as phishing for your credit info, some collecting deposits and rental on property they don't own, some even more sophisticated, and there is no recourse if you get suckered. At least with VRBO you have a reputable middleman involved and are protected up to $10,000.
Good luck!