Travel Alerts

Hotel tax increased to pay for rail transit system


Hawaii has announced plans to increase its Transient Accommodations Tax (TAT) rate from next year, Travel Wire News says.

Effective January 1, 2018, the Transient Accommodations Tax (TAT) applied to lodging accommodations throughout the State of Hawaii will be increased by 1%, raising the TAT from its current rate of 9.25% to 10.25%. 

The increase is scheduled to stay in effect until December 31, 2030.

The TAT increase is being put into effect to help pay for Honolulu’s rapid transit system that is currently under construction. The light metro rail system will extend 20 miles from Kapolei in Leeward Oahu to Ala Moana Center in Honolulu, with 21 stations along the way, including the Daniel K. Inouye International Airport, the State of Hawaii’s main port of entry for air transportation.

The move will likely lead to an increase in accommodation rates across the islands.
 
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