@Robyn15 Aloha my fellow Kama'aina. This is a very good question. There is a two part answer to this.
Yes, Airbnb is collecting a tax from each guest who books with a Hawaii host which is listed in their detailed pricing summary in the confirmed booking email, but its only being collected as $1. Which is in no way equal to the 9.25% Hawaii Accommodation Tax that is calculated/collected by each hotel and bed/breakfast home. However, it was certainly a way for Airbnb to show the state that they could collect a tax, and be upfront about it with their records. I can share with you that Expedia recently was sued and judgement was granted for $330 million dollars for all the tax they collected from their customers but never turned that tax money over to the State. Several hosts are still collecting that from their guests in their nightly rate or collected in person as stated in their profile. Myself, I called Airbnb to speak with a Manager to get clarification on this tax issue since we all want be right with Uncle Sam....haha
Check out Mondays article dated March 6, 2016 of Star Advertiser which you can also find online. There is some information about Bill 2693 and House Bill 1850 being voted on which would allow Airbnb to legally collect this necessary 9,25% tax which is of course supported by the Department of Taxation for Hawaii. However, the bill has only passed in the House. Both bills are advancing but this is in no way a loophole to not pay the tax yourself at the State Tax office on Punchbowl Street or mailing it in with the appropriate tax form reporting your quarterly income.
Its important to understand that the State of Hawaii and the City of Honolulu zoning laws do not agree with each other on the legality of Airbnb. However, it is the sole responbility of each host to have a GE License Tax No and a State Accommodation Tax ID as well in order to pay your fair share of the taxes for this income through Airbnb. However, keep in mind that its hard to pay a Transient Tax when the Honolulu permit office hasn't issued a single permit for a Bed and Breakfast venue since 1987, making it extremely hard to do business as as legal Bed and Breakfast. Even though hundreds of applications have been submitted. Makes me think of that saying..."Why teach me how to swim if you are just going to tie my hands behind my back". But that's Hawaii for you. Hope this answer was helpful.
Side Note: Did you know that Mayor Cardwell threw $300,00 of our hard earned taxed dollars into that very same permit office to hire more inspectors? These are the same inspectors who are now approaching the many homes of Airbnb Hosts to make sure they are following the laws of vacation rentals? Go online and read the latest articles/videos to come out since January 6, 2016. Its outrageous. Rumor has it he stole it from our Hurricane fund....makes me seriously nervous since we haven't had a hurricane since 1991. Yikes.
But I still consider myself very #LuckyToLiveHawaii 🙂
If you feel that me or another host have helped you, feel free to click on the "thumbs up" button at the end of any post. Thank you so much.
Aloha, Momi
Great way to contact Airbnb or via Twitter at AirbnbHelp / Facebook