Lawmakers in Hawai’i are quickly moving to add a 3 percent tax for tourists looking to visit Maui. This new tax will allow counties in the state to collect this tax from travelers staying at hotels and short-term rentals like Airbnb and VRBO.
The lodging tax of 3 percent is projected to boost revenue, between $50–70 million, doubling or tripling what taxes are already brought in with the 10 percent hotel tax. Before this new law, Oahu was given a bulk of the tax money for being the largest island of Hawai’i. Now, each county will receive money based on the number of tourists per capita.
Since travel restrictions implemented during the COVID-19 pandemic were lifted, Maui had a large increase of tourists visiting the island. Like many businesses over the past year, Hawai’i is experiencing a shortage of hospitality workers and are struggling to keep up with the influx of visitors.
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