When we look at the bills that have been introduced in this legislative session, we wonder if lawmakers aren’t thinking that the transient accommodations tax (TAT) is like duct tape, in that it fixes everything.
Senate Bill 1396/House Bill 1077, for example, is a bill being pushed by the Governor’s office. It would create two new special funds (those of you familiar with this column know that we detest many special funds), one to deal with climate change impacts and the other to help with economic revitalization. The funds would be fed by an increase in the TAT to 12% (it’s now 10.25%) starting in 2026.
House Bill 604 is a little more modest, proposing an increase in the TAT of “only” one percentage point. The increase in revenues would go to the Hawaiian Home General Loan Fund established under the Hawaiian Homes Commission Act of 1920. This fund can be used for the construction of homes, for construction of replacement homes, for home repairs or additions, or for the development and operation of a farm, ranch, or aquaculture operation, all on Hawaiian home lands…