Expiration of the Iniki Exemption from the Transient Accommodations Tax
Pursuant to Section 237D-3.5, Hawaii Revised Statutes
This announcement is to remind taxpayers that the exemption from the imposition of the transient accommodations tax for amounts received by qualified facilities located in a county with a current resident population under 100,000 (Kauai County) applies to amounts received from May 1, 1993, through December 31, 1994. Accordingly, the exemption will not apply to amounts received on or after January 1, 1995.
Amounts received by the qualified facilities after December 31, 1994,
from furnishing transient accommodations prior to December 31, 1994, shall
not be exempt from the transient accommodations tax. The following example
illustrates this situation:
ABC Hotel, engaged in the activity of furnishing transient accommodations on Kauai, rents a room to Tourist A for the period December 15, 1994, through January 5, 1995. Tourist A pays ABC Hotel $1,000 for the rental of the hotel room upon checking out on January 5, 1995. The entire $1,000 is considered gross rental proceeds subject to the six percent transient accommodations tax since the amount was collected by ABC Hotel after December 31, 1994.
RICHARD F. KAHLE, JR.
Director of Taxation