Hawaii's hotel room tax increases

By Shane Nelson

The state tax on Hawaii hotel rooms, officially referred to as the Transient Accommodations Tax or TAT, increased from 8.25% per day to 9.25% on July 1.

The increase is the second stage of a bill passed by the state legislature during the spring of last year that first raised the tax from 7.25% per day to 8.25% on July 1, 2009. State lawmakers passed the legislation as part of an effort to address an unprecedented $2 billion budget shortfall.

In addition to the 9.25% TAT, Hawaii hotel guests must also pay a 4% daily general excise tax (4.5% on Oahu) on the cost of a room.

State legislators expected the increase to raise $28 million in extra revenue during 2009 and $60 million this year.

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