Hawaii County short-term rental operators must register with county under new law

Short-term rental (STR) operators in Hawaii County, Hawaii, face new registration and enforcement rules under a law passed by the Hawaii County Council. The measure is set to go into effect December 20, 2025, but that date could be pushed back to March 2026 to give the county government enough time for implementation.

Under the law, STRs are defined as rentals of less than 180 consecutive days. STR operators must register with the county annually and provide information about the property that includes its address, number of bedrooms for rent, and proof of compliance with property tax and health and safety requirements.

Registration fees are $250 for hosted STRs and $500 for unhosted properties. STR registrations expire 90 days after ownership changes, and new owners must re-register with the county. The city can issue fines or revoke registration for violations, including a fine of up to $10,000 for failing to register.

The ordinance also has new rules for STR marketplaces such as Airbnb and Vrbo. Marketplaces must register with the county, pay a fee of $1,000, and submit reports monthly. These reports must include a list of all STRs included on the site, with STR registration numbers and property tax map keys. The county may issue fines of up to $10,000 per day or order listings removed for violations. Marketplaces have 10 business days to address issues.

Operators in Hawaii County are also required to follow lodging tax rules. STR income is subject to state and county transient accommodations tax (TAT) as well as general excise tax (GET). STR operators must pay the taxes based on their gross rental proceeds but can pass these taxes on to guests.

Hawaii STR operators are required to register with the Hawaii Department of Taxation for GET and TAT licenses/tax ID numbers. For state-administered TAT and GET, as well as county GET surcharge taxes, operators must file lodging tax returns with the state and pay at the time of filing. For county TAT surcharge taxes, hosts file returns with the state, but pay the taxes to county tax authorities.

While STR marketplaces such as Airbnb and Vrbo collect taxes on behalf of their hosts in many states, they’re not allowed to do so in Hawaii. That means hosts are responsible for taking care of all tax obligations, including registering, filing lodging tax returns, and paying taxes to both the state and the county.

STRs have been a controversial topic in Hawaii in recent years amid concerns about overtourism and housing scarcity.

Earlier this year, Hawaii passed a new statewide “green fee” that will fund environment efforts and raise lodging taxes. It’s scheduled to go into effect in 2026.

Counties got more powers to regulate STRs — including phasing them out altogether — under a 2024 state law. Following passage of the state measure, Maui Mayor Richard Bissen introduced a bill to phase out STRs in apartment districts in Maui County. That legislation was passed by the Maui County Housing and Land Use Committee but must still be approved by the full county council.

Also in 2024, a Hawaii County ordinance banning STRs on agricultural land was upheld by the state Supreme Court after years in the courts. The Hawaii Supreme Court was unanimous in its ruling that Hawaii law does not permit farm dwellings to be used as STRs.

Avalara MyLodgeTax can help Hawaii short-term rental hosts automate registration and filing for state and county TAT and state GET. For more on lodging taxes in the state, see our Hawaii vacation rental tax guide. If you have tax questions related to vacation rental properties, drop us a line and we’ll get back to you with answers.