Hawaii HB889 creates a refundable tax credit for residents who pay transient accommodations tax for in-state accommodations.

Hawaii HB889 amends the transient accommodations tax to provide a refundable tax credit for residents who pay the tax on accommodations within the state. The credit is equal to the amount of transient accommodations tax paid and can be claimed against the taxpayer's individual income tax liability. If the credit exceeds the income tax payments due, the excess will be refunded to the taxpayer. The credit is intended to offset the double taxation burden on residents who already support state and county infrastructure and public services through various other forms of taxation.

Hawaii HB889 creates a refundable tax credit for residents who pay transient accommodations tax for in-state accommodations.

Hawaii HB889 amends the transient accommodations tax to provide a refundable tax credit for residents who pay the tax on accommodations within the state. The credit is equal to the amount of transient accommodations tax paid and can be claimed against the taxpayer's individual income tax liability. If the credit exceeds the income tax payments due, the excess will be refunded to the taxpayer. The credit is intended to offset the double taxation burden on residents who already support state and county infrastructure and public services through various other forms of taxation.