Just received this update from Lynda Gill of Re-Max. It's not related specifically to AOBO only but I thought it was important for all owners to be aware of this upcoming change.
TA Tax To Increase By 1% To Help Bail Out Honolulu Rail Project
The controversial “Rail Bail Out Bill” passed the House and Senate and was signed last week by Governor Ige. The bill is projected to generate $2.278 billion, which is enough to show the Federal government that the State of Hawaii has their amount of funds needed to receive the $1.55 billion from the Federal Transit Administration which is needed to complete the Honolulu Rail Project. With the passage of this bill the State now has until September 15 to submit a financial recovery plan to the Federal Transit Administration to receive $1.55 billion in Federal funds.
The bill impacts the entire state in the fact that the Transient Accommodation Tax (TAT), which is the hotel tax mostly paid by tourists, will go from 9.25% to 10.25% for 13 years. This TAT tax increase will apply to timeshare as well and goes into effect January 1, 2018. The GET tax surcharge that ONLY Oahu is currently paying will be extended from the current 10 year to an additional 3 years.
Thanks, Lynda, for keeping us up-to-date!
