occupancy tax?

For timeshare owners? Just got back from Ko Olina and hit with an $8.89 per day tax I don't remember this last time I went.

AFAIK, a transient occupancy tax is charged by all Hawaii timeshares.

Are another way to say it, Hawaii has the timeshare industry collect an Hawaii occupancy tax from the person who is occupying the unit.

Is it true the Maui Mayor is considering doubling the occupancy tax for Arkansas red-necks staying on Maui??


:hysterical:

Sterling

I'm in trouble then.Guess I need to masquerade as a Longhorn. I could never pass for an Aggie. I'm much too smart.

Hmmm. So I pay property tax already, but now I have to pay a transient tax because I am not a permanent resident?

What if I just bought a condo over there and vacationed part time?

Another way to stick the tax burden to the timeshare owners....

jpc763 said:

Hmmm. So I pay property tax already, but now I have to pay a transient tax because I am not a permanent resident?

What if I just bought a condo over there and vacationed part time?

Another way to stick the tax burden to the timeshare owners....

Click to expand...

I believe they also have a non-resident property owners tax that is substantially higher than resident owners.

Essentially, if you can't vote, you get stuck with the bill. The same thing happens in other cities with taxes on things like rental cars, where the price is often 50% higher than the cost of the car due to all the taxes and fee's tacked onto the final bill.

Hmmm, we paid $4.12/day tax on for our two week stay on Maui. Wonder why the difference? We are owners at the resort, but weren't staying during the week we own.

Honestly, I didn't think it was bad. I've stay other places with a much higher per day fee.

As I recall, this occupancy tax was driven largely by the hotel industry's trade association because they argued (lobbied) that they were at a disadvantage with timeshares because they (hotels) had to charge this fee driving up their per night stay costs. The Hawaiian legislature enacted the tax for timeshare occupancy several years ago (at least five or six . . . maybe longer).

P.S. The fee is assessed based on the size of the timeshare unit. In 2007, the fee was $11.42 for a studio/one bedroom unit and $31.70 for a two bedroom unit (for the week). I don't have the numbers handy since then.

The TAT varies from resort to resort because it's calculated on the fair market rental value. The fair market rental value is calculated based on the maintenance fees. At the Westin Ka'anapali the TAT varies from about $6 - to about $14 per day.

I believe it is currently 9.25%, and I think it was implemented in 1998 at 7.25%.

Here is a download from the state of Hawaii with more info. -
http://www.google.com/url?sa=t&rct=...yU_7GkYJVPboxnJaw&sig2=4kJoUwD5xXxj9iRlhE7IGA

I just paid $11 per day at the Maui Marriott 2 bedroom OV in the new towers.

I think that's been in place for at least 10 years. I seem to remember paying it during our first timeshare trip to Hawaii in 2001 but I could be wrong.

I think with hotels, you expect extra taxes over the room rate. It's a little more obvious with timeshares.

jpc763 said:

For timeshare owners? Just got back from Ko Olina and hit with an $8.89 per day tax I don't remember this last time I went.

Click to expand...

We just returned from The Hanalei Bay Resort and had to pay a tax of $11.00 per day on a 2 bedroom unit.

DeniseM said:

The TAT varies from resort to resort because it's calculated on the fair market rental value. The fair market rental value is calculated based on the maintenance fees. At the Westin Ka'anapali the TAT varies from about $6 - to about $14 per day.

I believe it is currently 9.25%, and I think it was implemented in 1998 at 7.25%.

Here is a download from the state of Hawaii with more info. -
http://www.google.com/url?sa=t&rct=...yU_7GkYJVPboxnJaw&sig2=4kJoUwD5xXxj9iRlhE7IGA

Click to expand...

Denise thanks for the clarification & correction. I'm wondering if the implementation has been staggered based on the TS resort figuring it out as my first trip to Hawaii in a TS back in 2000, I paid no occupancy fee at Paniolo Greens on the Big Island.

Occupancy Taxes...Since January 1, 1999

Aloha All!

After some research, the State of Hawaii started charging the timeshare occupancy tax to the person who occupies the unit as of January 1, 1999. The amount varies from property to property since the amount is based on the fair market value of the unit occupied. They have a lot of information on the State of Hawaii's Fact Sheet regarding the TOT at: http://files.hawaii.gov/tax/legal/taxfacts/tf98-04.pdf

This is the tax that timeshare owners get to pay for saving Hawaii's bacon every time there is an economic downturn and hotel occupancy declines.

Some thanks :ignore:

What is the tax amount currently?

It isn't a flat rate - the tax varies by resort and unit size - you will have to ask the resort.

It is better than the new tax USVI just implemented, they wanted $30/day, but they passed a $25/day tax for timeshare occupants. No variation for size or value.

I expect the Marriotts which have some of the highest MFs to have the highest tax, since it is calculated based on some formula off MF for the unit type/size you are in.

jpc763 said:

Hmmm. So I pay property tax already, but now I have to pay a transient tax because I am not a permanent resident?

What if I just bought a condo over there and vacationed part time?

Another way to stick the tax burden to the timeshare owners....

Click to expand...

True, but remember--you are not a resident of Hawaii and, therefore, neither a voter or even a potential voter. If you're not a constituent, you're an easy target for junk fees and taxes. And Hawaii loves its taxes.

jpc763 said:

For timeshare owners? Just got back from Ko Olina and hit with an $8.89 per day tax I don't remember this last time I went.

Click to expand...

I believe it has been in effect since before Marriott's Ko Olina Beach Club even opened. The amounts have steadily increased overt the years, however.

9.25% x half daily maintenance according to pdf I just read from tax dept... sorry my link is bad

Resorts need to take care of this.

It is not exactly a double tax. Counties take your property tax. State takes this tax.

jpc763 said:

Hmmm. So I pay property tax already, but now I have to pay a transient tax because I am not a permanent resident?

What if I just bought a condo over there and vacationed part time?

Another way to stick the tax burden to the timeshare owners....

Click to expand...

The County would tax you on property. The state would not receive taxes from you. If you rent the condo to transients, then there would be a transient accommodation tax.

Working people in Hawaii share in paying for schools, parks, roads and so on. This maintains a quality of life comparable to other US locations. You can certainly find places with equal beauty in other countries with cheaper on the ground costs. Some people come to Hawaii because they want to have the beauty plus remain in the USA.

Sandy VDH said:

It is better than the new tax USVI just implemented, they wanted $30/day, but they passed a $25/day tax for timeshare occupants. No variation for size or value.

I expect the Marriotts which have some of the highest MFs to have the highest tax, since it is calculated based on some formula off MF for the unit type/size you are in.

Click to expand...

Was thinking the same thing, Sandy..

i don't like the transient occupancy tax, and I don't think it is fair since timeshare owners already pay property tax since they so own a share of property. I do pay it gladly since I love being in Hawaii so I will deal with it.

However, there are some other tax rates I don't agree with which don't personally cost me negatively but effect lower income Hawaii residents negatively. Supermarket food is taxed just the same as restaurant food and non food items that are purchased. In NY supermarket food is NOT taxed. The lower income Hawaiian residents spend a greater portion of their income on supermarket food than higher income residents or tourists.

Also, property taxes are very low compared to the property taxes where I live. The teachers get paid less than half of the salaries of the teachers where I live. The public schools where I live are far superior to the public schools in Hawaii. Higher income families in Hawaii send their children to private schools so they don't care about the quality of the public schools and don't want to raise the property taxes. Furthermore, the low property taxes support the high real estate values in Hawaii. The real estate investment carrying costs are drastically reduced by the low property taxes making purchases of multiple million dollar condos very attractive.