HB2330

SECTION 1. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Hosting platforms as tax collection agent. (a) A hosting platform that earns service fees for providing booking services shall register with the department of taxation as a tax collection agent under this section, as a condition precedent to providing booking services. Upon registration, the department of taxation shall issue to the tax collection agent a separate license for its activities in that capacity, with respect to taxes due under this chapter on behalf of its operators and, if applicable, for taxes payable under this chapter for its own business activities. The director of taxation may prescribe the form and manner of registration and may require any information necessary for the administration of this section.

(b) In addition to its own responsibilities under this chapter, a tax collection agent shall report, collect, and pay over the taxes due under this chapter on behalf of all operators for whom the tax collection agent provides booking services; provided that the tax collection agent's obligation to report, collect, and pay taxes on behalf of its operators shall apply solely to transient accommodations located in the State for which booking services were provided by the tax collection agent. For all other business activities not related to the booking services, each operator shall remain subject to all applicable requirements of title 14 as if this section did not apply.

(c) If a tax collection agent fails to collect and pay the tax as required under subsection (b), the tax collection agent shall be liable to pay to the State any unpaid portion of the amount of tax that was required to be paid under subsection (b), together with penalties and interest as provided by law.

(d) A tax collection agent shall file periodic returns in accordance with section 237-30 and annual returns in accordance with section 237-33. Each annual return required under section 237-33 shall include, in a form prescribed by the department of taxation, the following information for each operator on whose behalf the tax collection agent is required to report, collect, or pay over taxes due under this chapter:

(1) Name;

(2) Social security number or federal employer identification number;

(3) Address of each transient accommodation;

(4) General excise tax license number;

(5) Transient accommodations tax registration number;

(6) Amount of general excise tax paid on behalf of the operator; and

(7) Amount of transient accommodations tax paid on behalf of the operator.

(e) For the purposes of this section, and unless the context otherwise requires:

"Booking service" has the same meaning as in section 237D‑1.

"Hosting platform" has the same meaning as in section 237D‑1.

"Operator" has the same meaning as in section 237D-1.

"Tax collection agent" has the same meaning as in section 237D-1.

"Transient accommodations" has the same meaning as in section 237D-1."

SECTION 2. Chapter 237D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237D- Hosting platform as tax collection agent. (a) A hosting platform that earns service fees for providing booking services shall register with the department of taxation as a tax collection agent under this section, as a condition precedent to providing booking services. Upon registration, the department of taxation shall issue to the tax collection agent a separate certificate of registration for its activities in that capacity, with respect to taxes due under this chapter on behalf of its operators and, if applicable, for taxes payable under this chapter for its own business activities. The director of taxation may prescribe the form and manner of registration and may require any information necessary for the administration of this section.

(d) A tax collection agent shall file periodic returns in accordance with section 237D-6 and annual returns in accordance with section 237D-7. Each annual return required under section 237D-7 shall include, in a form prescribed by the department of taxation, the following information for each operator on whose behalf the tax collection agent is required to report, collect, or pay over taxes due under this chapter:

(1) Name;

(2) Social security number or federal employer identification number;

(3) Address of each transient accommodation;

(4) General excise tax license number;

(5) Transient accommodations tax registration number;

(6) Amount of general excise tax paid on behalf of the operator; and

(7) Amount of transient accommodations tax paid on behalf of the operator."

SECTION 3. Section 231-8.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) If the requirements of subsection (c) are satisfied, the department may require electronic filing of any tax return, application, report, or other document required under the provisions of title 14 administered by the department for the following taxpayers:

(1) For withholding tax filings required under chapter 235, only employers whose total tax liability under sections 235-61 and 235-62 for the calendar or fiscal year exceeds $40,000;

(2) For income tax filings required under chapter 235, only taxpayers who are subject to tax under section 235-71, 235-71.5, or 235-72;

(3) For general excise tax filings required under chapter 237, only taxpayers whose total tax liability under chapter 237 for the calendar or fiscal year exceeds $4,000;

(4) For transient accommodations tax filings required under chapter 237D, only [~~operators and plan managers~~] taxpayers whose total tax liability under chapter 237D for the calendar or fiscal year exceeds $4,000; and

(5) For filings required under the following chapters, all taxpayers subject to tax under those chapters:

(A) 236E;

(B) 239;

(D) 243;

(E) 244D;

(F) 245; and

(G) 251."

SECTION 4. Section 237-30.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every person authorized under an agreement by the owner of real property located within this State to collect rent on behalf of the owner shall be subject to this section[.]; provided that this section shall not apply to any hosting platform registered as a tax collection agent under section 237‑ ."

SECTION 5. Section 237-41, Hawaii Revised Statutes, is amended to read as follows:

"§237-41 Records to be kept; examination. (a) Every taxpayer shall keep in the English language within the State, and preserve for a period of three years, suitable records of gross proceeds of sales and gross income, and such other books, records of account, and invoices as may be required by the department of taxation, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof.

(b) Each tax collection agent registered under section 237- shall maintain records for each operator for whom the agent provides booking services, including the operator's name, the address of the transient accommodation, the period of occupancy, the gross rental or gross rental proceeds, and the taxes collected and remitted on behalf of the operator. The records shall be preserved and made available for inspection as provided in subsection (a). Nothing in this subsection shall be construed to diminish or eliminate the responsibilities of taxpayers under this section."

SECTION 6. Section 237-41.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be personal liability for the taxes imposed under this chapter as provided in this section for the following amounts of gross income or gross proceeds:

(1) Any amount collected as a recovery of the taxpayer's liability under this chapter, where the amount is passed on as the tax owed by the taxpayer under this chapter for the transaction and is separately stated or accounted for in a receipt, contract, invoice, billing, or other evidence of the business activity; or

(2) An amount equal to the tax liability under this chapter on a transaction where a taxpayer does not separately state or account for the amount as a tax recovery as provided in paragraph (1). For purposes of this paragraph, the amount of the imputed tax liability is the result of multiplying the gross income or gross proceeds received in the transaction by the tax rate[.]; or

(3) Any amount collected by a tax collection agent under section 237- .

The amounts under paragraphs (1) [~~and~~], (2), and (3) shall be held in trust for the benefit of the State and for payment to the State in the manner and at the time required by this chapter."

SECTION 7. Section 237D-1, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

""Booking service" means any service, including a reservation or payment service, provided by a person or entity that facilitates a transient accommodations transaction between an operator and a prospective transient or occupant, and for which the person or entity collects or receives, directly or indirectly, through an agent or intermediary, a fee in connection with the reservation or payment service provided for the transient accommodations transaction.

"Hosting platform" means a person or entity that participates in the transient accommodations business by providing, and collecting or receiving a fee for, booking services through which an operator may offer transient accommodations. "Hosting platform" includes a person or entity that, usually though not necessarily, provides the booking services through an online or digital platform that allows an operator to advertise transient accommodations and enables a renter to arrange, reserve, or pay for the rental of transient accommodations, whether payment is made directly to the operator or through the hosting platform. "Hosting platform" does not include a marketplace facilitator as defined in section 237-4.5.

"Tax collection agent" means a person or entity that collects money and taxes from a renter owed to an operator, and the portion of the amounts representing taxes does not constitute the tax collection agent's own income."

SECTION 8. Section 237D-8.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every person authorized under an agreement by the owner of transient accommodations located within this State to collect rent on behalf of the owner shall be subject to this section[.]; provided that this section shall not apply to any hosting platform registered as a tax collection agent under section 237D- ."

SECTION 9. Section 237D-12, Hawaii Revised Statutes, is amended to read as follows:

"§237D-12 Records to be kept; examination. (a) Every taxpayer shall keep in the English language within the State, and preserve for a period of three years, suitable records of gross rental, gross rental proceeds, or fair market rental value relating to the business taxed under this chapter, and such other books, records of account, and invoices as may be required by the department, and all such books, records, and invoices shall be open for examination at any time by the department or the Multistate Tax Commission pursuant to chapter 255, or the authorized representative thereof.

(b) Each tax collection agent registered under section 237D- shall maintain records for each operator for whom the agent provides booking services, including the operator's name, the address of the transient accommodation, the period of occupancy, the gross rental or gross rental proceeds, and the taxes collected and remitted on behalf of the operator. The records shall be preserved and made available for inspection as provided in subsection (a). Nothing in this subsection shall be construed to diminish or eliminate the responsibilities of taxpayers under this section."

SECTION 10. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act, upon its approval, shall take effect on January 1, 2027.

INTRODUCED BY:

_____________________________

BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	2330
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII