What type of rental is subject to the Transient Accommodation Tax?

What type of rental is subject to the Transient Accommodation Tax?

• A. Long-term residential rentals
• B. Short-term rentals of less than 180 days
• C. Commercial rentals
• D. Government housing units

Answer: (B)

Short-term rentals of less than 180 days are subject to the Transient Accommodation Tax (TAT) in Hawaii. This tax is specifically applied to rental properties that provide lodging to guests for a period considered transient, which is generally defined as less than 180 days. The main purpose of the TAT is to collect revenue from the tourism industry, as these short-term accommodations typically cater to tourists visiting the islands. Long-term residential rentals, on the other hand, typically extend beyond 180 days and are exempt from the TAT because they cater to residents rather than transient guests. Commercial rentals are also not subject to this tax as they are classified differently and do not fall under the purview of accommodations for transient use. Lastly, government housing units are not taxable under the Transient Accommodation Tax, as they serve a different population and purpose entirely. Thus, short-term rentals are the clear focus for the application of the TAT in Hawaii.

Short-term rentals of less than 180 days are subject to the Transient Accommodation Tax (TAT) in Hawaii. This tax is specifically applied to rental properties that provide lodging to guests for a period considered transient, which is generally defined as less than 180 days. The main purpose of the TAT is to collect revenue from the tourism industry, as these short-term accommodations typically cater to tourists visiting the islands.

Long-term residential rentals, on the other hand, typically extend beyond 180 days and are exempt from the TAT because they cater to residents rather than transient guests. Commercial rentals are also not subject to this tax as they are classified differently and do not fall under the purview of accommodations for transient use. Lastly, government housing units are not taxable under the Transient Accommodation Tax, as they serve a different population and purpose entirely. Thus, short-term rentals are the clear focus for the application of the TAT in Hawaii.