Bill to Regulate Short-Term Rental Market in Hawai’i

AN ACT to regulate the short-term rental market in the state, provide for local regulation of short-term rentals, and ensure the proper taxation and management of short-term rental properties.

Section 1: Definitions

(a) “Short-Term Rental Unit” (STR Unit): A dwelling or room rented for fewer than 30 consecutive days.

(b) “Host”: The legal owner or agent of a Short-Term Rental Unit.

(c) “Platform”: An online platform for booking Short-Term Rental Units.

(d) “Municipality”: The local government responsible for issuing and enforcing Short-Term Rental Licenses.

(e) “License”: A permit issued by the Municipality authorizing the use of Short-Term Rental Units.

Section 2: Short-Term Rental Regulations

To promote responsible tourism, support the local economy, and reduce the number of non-occupied rentals, the following regulations shall be enforced:

(a) Hosts must obtain a permit from the municipality before advertising their Short-Term Rental Unit.

(b) Short-Term Rental Units cannot be used for commercial purposes or in violation of local zoning laws.

(c) A Short-Term Rental Unit does not need to be rented as a whole unit and guests can share the unit with the owner.

(d) A Short-Term Rental Unit cannot be rented for more than 180 nights per calendar year.

(e) Each Short-Term Rental Unit must have appropriate safety and security measures, including fire extinguishers, first aid kits, and smoke detectors.

(f) Hosts must maintain insurance coverage on both building and personal property.

(g) Hosts must provide guests with standard house rules, including information on emergency services, waste management, and consequences of violating local laws.

(h) Hosts must pay all applicable taxes and fees and collect and remit these taxes to the appropriate authorities.

(i) Platforms must display each listing’s License number prominently in the property description.

(j) Platforms must require Hosts to certify compliance with applicable laws, collect and remit taxes, and provide data and reports on Short-Term Rental activities to the Municipality.

(k) The Municipality may limit the number of non-occupied Short-Term Rental Units and prioritize permits for local accommodations.

Section 3: Penalties

(a) Hosts who violate this Act shall be fined up to $100 per day of violation.

(b) Platforms that violate this Act shall be fined up to $500 per day of violation.

(c) In addition to these penalties, any Host or Platform that violates other applicable laws shall be subject to additional fines.

Section 4: Enforcement

The Municipality has the authority to enforce this Act and initiate corrective action for violations of Section 2 regulations.

Section 5: Effective Date

This Act takes effect on the first day of the third calendar month following its enactment.