TRANSIENT ACCOMMODATIONS TAX (TAT)
ANNOUNCEMENT NO. 2021-02
Revised December 3, 2021
Maui County Transient Accommodations Tax (MCTAT)
Effective November 1, 2021
The purpose of this Announcement is to notify the public of the MCTAT
and to provide information for taxpayers subject to the MCTAT.
Act 1, 1st Special Session 2021 (House Bill 862, H.D. 2, S.D. 2, C.D. 1), which became law on July 8, 2021, authorizes the four counties to establish and administer their own transient accommodations tax (TAT) at a maximum rate of 3 percent. In order to establish the MCTAT, the County must enact an ordinance. The Director of Finance in each County that establishes a County TAT is granted the same authority that the State Director of Taxation has under chapter 237D, Hawaii Revised Statutes (HRS).
The Maui County Council introduced a bill to establish Chapter 3.47, Maui County Code (MCC), which implements the MCTAT. Committee meetings to discuss the TAT were scheduled on August 4, 2021, August 18, 2021, and September 1, 2021. The bill was recommended to be passed on first reading by the Budget, Finance, and Economic Development Committee meeting on September 1, 2021. The bill was posted for first reading on September 17, 2021 at such time, amendments were made to the bill. On October 1, 2021, the bill passed second and final reading, with further amendments. On October 5, 2021, Ordinance No. 5273, Bill No. 101 (2021) Draft 1 was signed into law by Mayor Michael P. Victorino.
Imposition of MCTAT
Effective November 1, 2021, the MCTAT is levied at a rate of 3 percent on every taxpayer that has taxable gross rental proceeds and/or total fair market rental value attributable to the County of Maui. The MCTAT is imposed in addition to the State TAT, which is currently levied at a rate of 10.25 percent. These amounts can be found on Forms TA-1 and TA-2 which must be filed with the State of Hawaii Department of Taxation (DOTAX). Click Here for a sample Form TA-1, the periodic return for taxable gross rental proceeds and total fair market rental value of timeshares.
Chapter 3.47.050, MCC, provides that all operators, timeshare plan managers, transient accommodations brokers, travel agents, and tour packages subject to the MCTAT must have a State TAT license issued pursuant to sections 237D-4 or 237D-4.5, HRS. Taxpayers who are registered with the State and have a valid State TAT number, will be deemed registered for MCTAT. Taxpayers subject to the MCTAT do not need to register separately with the County of Maui.
Under Section 3.47.060, MCC, the County Director of Finance has the authority to prescribe how periodic and annual County TAT returns are filed. The County Director of Finance has determined that State TAT returns filed with DOTAX will also be deemed to have been filed with the County of Maui. Therefore, taxpayers who are subject to the MCTAT will only need to file Forms TA-1 and TA-2 with DOTAX, as they are currently required. Taxpayers subject to the MCTAT will not need to file separate MCTAT return with the County of Maui.
Payment Due Dates
MCTAT payments are due concurrent with the State TAT returns and payments. Thus, payments are due on or before the 20th day of the calendar month following the close of the filing period. For periodic returns, taxpayers are required to file Form TA-1 on a monthly, quarterly, or semi-annual basis.
- For monthly filers, the first MCTAT payment is due on or before December 20, 2021.
- For quarterly filers, the first MCTAT payment is due on or before January 20, 2022.
- For semi-annual filers, the first MCTAT payment is due on or before January 20, 2022, however, the MCTAT payment amount will be based on income from November and December of 2021 only.6
The annual reconciliation of the State TAT return (Form TA-2) is due on or before the 20th day of the fourth calendar month following the close of the taxable year. As a general rule, a MCTAT payment will only be due if taxable gross rental proceeds or fair market rental value attributable to County of Maui is reported on Form TA-2 and not reported on Form TA-1 during the taxable year. If an MCTAT payment is due, filing of Form TA-2 and payment must be made by the deadline. For calendar year taxpayers, the deadline is April 20, 2022.
How to Calculate and Make MCTAT Payments
To calculate the MCTAT payment, multiply the sum of the taxable gross rental proceeds and fair market rental value less any applicable exemptions attributable to County of Maui by 3 percent. For a monthly filer, the first MCTAT payment, as reported on the taxpayer's Form TA-1 for November is due on or before December 20, 2021.
The County of Maui will accept MCTAT payments in the following methods:
- By Mail: Mail payment with the payment voucher form to:
County of Maui
Maui County TAT Office
110 Ala’ihi Street, Suite 107
Kahului, HI 96732
Note: Please do not send cash. All checks should be made payable to the “Director of Finance” in U.S. dollars drawn on any U.S. bank. Attach your check to the payment voucher. The following information should be written on your check so payment will be properly credited if the check is separated from the payment voucher form:
- The filing period
- Your State TAT ID number
- Your daytime phone number
- Click here to download a payment voucher form (Form MCTAT-1).
- In Person: Cash; check (personal, business, cashier’s, or certified); money order; and debit or credit cards may be accepted with a payment voucher form at:
County of Maui
Department of Finance
Maui County TAT Office
110 Ala’ihi Street, Suite 107
Kahului, HI 96732
Note: A convenience fee of 2.35% will be applied to payments made by debit or credit cards in-person.
- Online: Automated Clearing House (ACH) payments are accepted via the County’s online payment portal at https://www.mauicounty.gov/tat/payment. No fees will be assessed for ACH payments. However, ACH payments require bank verification, which can take up to 4 days. If your payment needs to completed sooner, please remit your payment using other payment method.
Taxpayers whose liability for the TAT exceeds $100,000 per year are required to pay tax by EFT. ACH payment that will be made via the County’s online payment portal will satisfy this requirement.
- Bulk Filers: MCTAT payments for multiple State TAT ID numbers may be remitted via County’s online payment portal rather than having to submit ACH payments online for each individual State TAT ID number. A one-time Bulk Filers Program Registration Form must be completed and submitted to MCTAT Office. Participants must be registered to access the online payment portal. Additionally, detailed payment information, in an Excel file format (MCTAT’s Bulk Filers Simple File) must be submitted via email at MauiTATBulkFilers@co.maui.hi.us as soon as a payment has been made online. To register to this program and for eligibility requirements, please refer to the MCTAT Bulk Filers Instructions Manual.
IMPORTANT: Commercial Bank Account Holders with an account covered by ACH Debit Block Service must provide their financial institution with the County’s ACH Debit ID No. 6996000618.
For more information contact the MCTAT Office. DOTAX will not be able to answer any questions regarding the MCTAT.
1 Maui County Code §3.47.010.
2 State of Hawaii, Department of Taxation - Form TA-1/TA-2, Line 2, Column C.
3 State of Hawaii, Department of Taxation - Form TA-1/TA-2, Line 6.
4 Hawaii Revised Statutes (HRS) §237D-2.
5 HRS §§ 237D-6, 7.
6 Maui County Transient Accommodations Tax is levied beginning on November 1, 2021.
7 Payment voucher form will be posted in the County’s website and mailed out to taxpayers who filed previously with DOTAX when it becomes available.
- What is the County Transient Accommodations Tax?
- Who has to pay the MCTAT?
- When is this effective?
- When are payments due?
- Can I just make one payment for both the State and County portions?
- Do I have to file a separate return with the County of Maui?
- If I don’t have to file a separate return, how will you know how to apply my payment?
- What happens if I don’t pay?
- Can I pass the County Transient Accommodations Tax on to the visitor?
- How do I pay my County Transient Accommodations Tax?
- What about bookings made in advance before the effective date?
- Download TAT FAQs