Honolulu’s New Budget Includes Higher Property Taxes for STRs

6/12/2024

Owners of short-term rentals (STRs) in Honolulu will pay more in property tax this year under a budget approved by the City Council on June 5. The council created a new property-tax category last year to charge STRs a rate between that of residences and hotels. Many short-term rental owners testified in opposition to the new rate, which will more than double what they pay. Kelly Lee, president of the Oahu Short-Term Rental Alliance, said, “The higher rates will destroy the intent to have STRs register and pay the appropriate taxes. Less STRs will also further reduce tourism numbers.” The issue of how to regulate short-term rentals has long plagued Honolulu lawmakers. Opponents say they reduce the city’s limited housing supply, while supporters say they can be an economic lifeline for homeowners who rent out their properties for extra income.

Honolulu Civil Beat (06/06/24) Ben Angarone