Honolulu weighs tax hike on vacation rentals - Hawaii News Now - KGMB and KHNL

Honolulu weighs tax hike on vacation rentals

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.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly