Act 1 which passed out of the legislature prevented DOTAX from assisting the counties with filling and collection of the County TAT. Separate payments will need to be made to the State Department of Taxation (DOTAX) and to the County Director of Finance. Can I just make one payment for both the State and County portions? Every annual reconciliation thereafter will cover the entire previous calendar year and will be due on April 20. The first annual reconciliation is due on April 20, 2022, covering the period Octothrough December 31, 2021. The timing of payments will coincide with the State. For quarterly filers, the first deadline covering the period Octothrough December 31, 2021, will be due on January 20, 2022. Since the effective date is October 1, 2021, those who pay the State TAT on a monthly basis will also need to remit their first payment to the County on or before November 20, 2021.
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The effective date for the County TAT will be October 1, 2021. This applies to every transient accommodation broker, travel agency, and tour packager who arranges transient accommodations at non-commissioned negotiated contract rates.
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General rule of thumb is if you pay the State TAT, you will need to pay the County of Kaua`i. Who has to pay the County Transient Accommodations Tax? The bill, signed into law on September 16, 2021, has established a rate of 3% on all gross rental, gross rental proceeds, and fair market rental value considered taxable under the definitions of Section 237D-1, Hawai`i Revised Statutes. Bill 2829 establishes Chapter 5, Article 4 within the Kaua`i County Code which implements a County Transient Accommodations Tax. What is the County Transient Accommodations Tax?Īct 1, in lieu of the counties receiving a distribution from the State, provides authority for a Countywide Transient Accommodations Tax.