HONOLULU, Hawaii (HawaiiNewsNow) -Vacation rentals will soon be paying more taxes.
Honolulu’s Mayor signed Bill 55 into law Tuesday. It creates a new tax classification for bed and breakfasts, and clarifies the taxes for transient vacation units.
The new rates bring them closer to what hotels have to pay.
This also clears the way for the city to issue 1,700 permits for vacation rentals starting next October.
The measure passed unanimously earlier this month. City officials expect the new tax classification will generate $5 million annually.