HONOLULU (AP) - Honolulu's city council is considering raising taxes on residential vacation rentals.
The Honolulu Star-Advertiser reports the measure up for first vote Wednesday would create a new tax category for homes that rent short-term rooms.
Bed and breakfasts and short-term rental vacation homes presently pay property taxes of $3.50 per $1,000 of assessed value. Hotels pay more than triple that rate.
Chairman Ernie Martin of the city council wrote the bill. He says the measure would tax short-term rentals more like a business.
Vacation rental owners say their profits already are low. They say a tax hike would drive some owners out of business and discourage owners of illegal rental operations from wanting to become legal.
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