Maui Discussion

Ask the Mayor: When Does TAT Increase Go Into Effect?

October 9, 2017, 2:19 PM HST
* Updated January 31, 10:43 AM
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Mayor Alan Arakawa answers some of the questions submitted to his staff. Questions submitted will be considered for inclusion in the “Ask the Mayor” column. Submit your own questions about County of Maui programs, services, operations or policies to Mayor Alan Arakawa at (808) 270-7855, [email protected]  or mail them to 200 S. High St., 9th Floor, Wailuku, HI 96793.

Dear Mayor,

Q: Please advise if the increase in Transient Accommodations Tax (TAT) is effective immediately, or will it take effect next year?

I wish to make sure I’m paying the correct amount at the correct time.

Thanking you in advance for your reply as soon as possible.

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A: The TAT is a state function; however, I can tell you that the increase in TAT will take effect Jan. 1, 2018 for 13 years.

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The increase is currently set to expire on Dec. 31, 2030.

This new TAT rate includes timeshares and was signed into law by Gov. David Ige to help fund the Honolulu rail system.

More information on determining the proper TAT rate is available online: click on “Tax Announcement 2017-10.”

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