Form TA-2, Transient Accommodations Tax Annual Return and Reconciliation, Rev 2022-2025

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Many nonprofit and religious organizations such as churches are exempt from federal and state income taxes, but since the GET is imposed on you as the seller and not your customer, the sale is subject to GET. Therefore, a business may visibly pass on the GET to customers who are nonprofit or religious organizations.
For periodic returns, taxpayers are required to file Form TA-1 on either a monthly, quarterly, or semi-annual basis. 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.
The transient accommodations tax on timeshare occupancy is 7.25% on the units fair market rental value. What is fair market rental value?
The TAT is imposed on you rather than on the government agency, so tax exemptions for government agencies do not apply. 9. What is the TAT rate that I must pay on my gross rental proceeds? The TAT rate on your gross rental proceeds is 10.25%.
Imposition of HCTAT (Hawaii County Transient Accommodations Tax): Beginning January 1, 2022, the HCTAT is levied at a rate of 3 percent on all taxable rental proceeds attributable to the County of Hawaii. The HCTAT is imposed in addition to the State TAT, which is currently levied at a rate of 10.25 percent.

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The OTAT is a tax levied at a rate of 3% on the gross rental or gross rental proceeds derived from furnishing transient accommodations, on the fair market rental value of a time share vacation unit, and on the gross rental proceeds received by transient Page 3 3 accommodations brokers, travel agents, and tour packagers
Attach a check or money order to Form OTAT-1 payable to CITY COUNTY OF HONOLULU in U.S. dollars drawn on any U.S. bank. Write OTAT, the filing period, your name, phone number, and Hawaii Tax I.D. number on your check or money order.

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