Question: Regarding owners paying TAT on a vacation rental (808ne.ws/kline320), is there a way to report someone who isn’t doing this?
Answer: Yes. “You may search all tax licenses at the Department of Taxation’s website at tax.hawaii.gov. If you suspect an individual or business is not complying with transient accommodations, general excise or other tax laws, you may report a tip to the Special Enforcement Section. We do not offer rewards for reporting this information. Investigators will review the tip. However, due to taxpayer confidentiality laws, we cannot report back on the status of our any review and investigation,” said Deborah Kwan, a spokeswoman for the state Department of Taxation.
You said your neighbor is operating an illegal vacation rental in your neighborhood and not paying applicable business taxes, which would include the transient accommodations tax (TAT) and general excise tax (GET). Keep in mind that enforcement of city land-use laws and state tax laws are separate. A short-term rental owner could be flouting the city’s rules (by operating in a residential zone without a nonconforming use permit, for example) while keeping up with their taxes. That’s one reason it’s important to search tax licenses before alleging a tax violation.
To do that, go to tax.hawaii.gov, click on “Search Tax Licenses” in the green column on the right side of the web page and follow the directions. The taxpayer’s last name or the name of the business (listed as DBA on the search form) should be enough to complete the search.
If an active tax license doesn’t show up and you want to report the potential violation to DOTAX, you can do so online, by phone, email, fax or regular mail, Kwan said:
Online: Go to tax.hawaii.gov and click on “Report Tax Violations” in the gray column.
Automated phone message: 587-1456
Email: Special.Enforcement.Tax.Section@hawaii.gov
Fax: 587-1633
Mail: Special Enforcement Section, Room 228, Department of Taxation, P.O. Box 259, Honolulu, HI 96809-0259
On this topic, Kokua Line also received “auwes” from readers who said we should have emphasized that a short-term vacation rental may be illegal even if the owner is paying the required business taxes. That’s true and bears repeating. The proliferation of short-term vacation rentals on Oahu includes many illegal ones, which are outside resort zones and lack nonconforming use certificates. City law prohibits residential-zoned properties from being rented out for less than 30 days. Bills moving in the City Council seek to address the problem, from permitting and enforcement perspectives.
Auwe
Auwe to the driver of a large white SUV who ignored a red turn signal and came barreling into the intersection at South King Street and University Avenue at about 8:30 Friday morning. I was in the crosswalk, with a green light and the white walking man signal. Glad he saw me in time to avoid hitting me; also glad that he wasn’t hit by cars who were moving with the green on King Street. But it’s a sobering reminder that even when pedestrians are following the rules, one careless or distracted driver can send us to the hospital or morgue. — A reader
Mahalo
I could hardly believe that a young woman whom I didn’t know would offer to give me change to finish paying for my items at Kahala Longs. I had the dollar bills and was attempting to find enough change when I heard the stranger say, “Here, I have a lot of change.” We hear so many auwes and too much sad news, so I wanted to make sure that this kindness is passed on! — Surprised senior citizen
Write to Kokua Line at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.
