Thanks Kona, I’m keeping up with all of this. Knowledge is Power and confidence.
They are being heard today. Some have already passed the house. But Airbnb has pushed back on one of them that turns their users into criminals. They say they won’t collect tax for them if that one passes.
So is this good news or bad news for us? Mahalo.
Well good in the sense that Airbnb won’t agree to collect tax ( a carrot for the state) if they have to sell out their users. A bargaining chip.
But overall, BAD… They are fiercely trying to control and punish users they deem illegal. It’s already pretty strict in Kauai.
I know it sucks. There are still operating without paying the GET & TAT. I have a few on my street but they’ve been doing it for a while now. I feel like paying 14% in taxes is excellent for the state. I feel like everyone wins in this situation as far as taxes and to keep it legal. I know there are a lot more in Big Island and really nice and cheap ones. I bet all those are pretty illegal as well. We had hosts from Kona stay with us but were not owners and were doing pretty well as the owner had allowed them. They served breakfast as well. I feel like when you do breakfast it get too complicated. If they do that they are only loosing money 1. enforcement 2. money for economies. It doesn’t make sense. I feel like Hawaii will be foreclosure islands as well. We already have a ton of foreclosures as is. So weird.
And guests don’t mind paying, they understand taxes. I saw a lot of foreclosures and real estate for sale when I visited Kauai and I wondered if it had been brought on by the regulation.
It’s really really hard to avoid paying taxes if you have an excise license because of the way you have to classify everything.