***REMINDER***
JULY 1, 2012 – NEW RENTAL LAW IN EFFECT!!!
1. NON-RESIDENT OWNERS MUST LIST THEIR GET/TAT NUMBER ON ANY RENTAL WEBSITE.
2. NON-RESIDENT OWNERS MUST PROVIDE AN ON-ISLAND CONTACT (Name & Phone Number) ON ALL CONTRACTS AND IN THEIR CONDOS.
3. FINES FOR NON-COMPLIANCE CAN BE UP TO $1000.
DON’T DELAY, DO IT TODAY!
***New Law Affects All Non Resident Vacation Rental Owners!***
House Bill 2078 passed in the Hawaii legislature after many revisions. It will become effective July 1, 2012.
A copy of the full bill can be found at:
http://www.capitol.hawaii.gov/session2012/bills/HB2078_CD1_.htm
(Special thanks to Earl Behrendt for keeping KKN owners up to date on the legislation as it progressed. The following is drawn from his notes)
In summary, the new law will require ALL non residents to:
1. Have an on island contact, who may not advertise, collect rents or perform other realtor duties.
2. List the on island contact in all rental contracts and display it prominently in rental condos.
3. List the GET/TAT number on a rental website.
4. List a website, on any advertisements, that has the GET/TAT number.
Many KKN owners, who have vacation rentals, wrote letters to HI elected representatives to mitigate the original legislation, which required EVERY NON RESIDENT owner to hire a licensed real estate professional and list contact information and GET/TAT numbers on all advertisements. They should be thanked for their diligence and proactive behavior, as they truly made a difference in the final legislation that passed.
The legislation came about as a result of the huge loss of GET/TAT revenue from non-resident owners who didn’t register with the state and paid no taxes. This non-compliance was estimated to cost Hawaii up to $30 million per year. Those who didn’t comply also hurt those owners who did, since they were able to rent for less, without the 13.42% taxes. The state had already begun to put pressure on condo offices, including KKN, requiring them to provide information to the state re daily condo usage, making them the local “police,” something no condo office wanted to do.
Vacation rentals owners should expect to hear from DMI, VRBO, HomeAway and other agencies alerting them how to comply with the new law. Let’s hope everyone complies so no further legislation is required.