Hawaii Legislation in 2025: What It Means for the Timeshare Industry
The 2025 legislative session in Hawaii brought some important changes that impact all of us in the timeshare industry. We want to share the highlights in clear terms, so owners and industry partners can better understand what’s happening and how it may affect us.
1. Increase in the State Transient Accommodations Tax (TAT)
One of the biggest changes this year is the passage of Governor Josh Green’s environmental impact fee bill. This bill raises the state TAT by 0.75%, bringing the total state tax rate to 11%, starting January 1, 2026.
The purpose of this increase is to help fund environmental programs in Hawaii, such as fighting climate change and managing the impact of tourism on natural resources. While we support protecting Hawaii’s environment, this increase will mean higher costs for visitors staying in hotels, vacation rentals—and yes, timeshares too.
For timeshare owners, the TAT is not charged on the full nightly rate but instead is based on half of the daily maintenance fee. Even so, this increase will still raise the amount owners pay when using their timeshare in Hawaii.
The good news? Some lawmakers had proposed adding a flat fee of $20–$25 per night for all guests. That proposal did not pass—so we avoided a much larger cost increase.
It was widely expected that some version of an environmental fee would pass after narrowly missing in previous years. In 2023, a $50 per visitor fee died in the waning hours of the legislative session.
Also, remember that each county can charge up to 3% more in local TAT, so the total can vary depending on where your timeshare is located.
2. Real Property Tax (RPT) on Maui
On Maui, we successfully avoided a major increase in the Real Property Tax rate for timeshares. Initially, there was a proposal to raise the rate by $2.00 per $1,000 of assessed value, which would have been a significant jump.
Thanks to strong advocacy—including testimony from many of you—the final decision was a much smaller increase of just $0.10, bringing the new rate to $14.70 per $1,000. While any increase affects owners, we are proud that our voices were heard and that the larger hike was avoided.
3. Maui Bill 9 – A Threat to Short-Term Rentals
Perhaps the most concerning issue right now is Maui Bill 9, which is still being debated. This bill proposes to phase out all short-term rentals in apartment-zoned areas, which include many well-established resorts and timeshare properties. All in all, it is estimated that about 6,000 transient vacation rentals will be affected.
The goal of the bill is to free up housing for local residents by converting vacation rentals into long-term homes. While we understand the seriousness of the housing crisis, this approach does not make sense when applied to timeshare. Restricting the ability to rent unused inventory will not contribute to the supply of long-term housing and will instead increase the costs for timeshare owners on Maui. If costs rise sharply, it could deeply impact Maui’s visitor industry and hurt the many workers, owners, and businesses who rely on tourism.
We are actively advocating for an exemption for timeshare resorts, many of which have operated responsibly in these areas for decades. The first two public hearings on the bill were emotional, with many residents and business owners speaking out.
In Summary
While 2025 brought some challenges, it also showed the importance of staying engaged and informed. The timeshare industry continues to support Hawaii’s economy, local jobs, and communities. We are committed to working with lawmakers to find solutions that protect the environment, address housing needs, and support tourism in a balanced and fair way.
We thank all our members and partners who spoke up, submitted testimony, or followed these developments. Your voice matters—and it makes a difference.