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What is OTAT

Learn about OTAT


If you are doing rental less than 6 month then you will need to know about the OTAT also known as Oahu Transient Accommodations Tax (OTAT)


Background

"On March 4, 2020, the Governor issued a Proclamation and Executive Orders related to the COVID-19 Emergency. In April 2020, under the Sixth Supplementary Proclamation, Section 237D-6.5(b), the State suspended distribution of the Transient Accommodations Tax (“TAT”) to the counties, resulting in the counties’ share of TAT allocation coming to an end.

Act 1, 1st Special Session 2021, which became effective on July 1 2021, repealed the State’s allocation of TAT to the counties and instead allowed the four counties the right to establish and administer their own transient accommodations tax at a maximum rate of 3%. In order to establish the OTAT, the City and County of Honolulu ("City") was required to first enact a local ordinance. The Director of Budget and Fiscal Services is granted the same authority that the State Director of Taxation has under chapter 237D, Hawai‘i Revised Statutes (HRS).

The City and County of Honolulu’s City Council introduced Bill 40 (2021) to establish Chapter 8A relating to the Transient Accommodations Tax on September 30, 2021. The bill passed first reading on October 6, 2021. The bill passed second reading with amendments by the City Council Committee on Budget, on November 10, 2021. The bill was posted for third and final reading with further amendments on November 24, 2021. On December 1, 2021, Bill 40 (2021), CD2, FD1 was approved by Council and Ordinance No. 21-33 was signed into law by Mayor Rick Blangiardi on December 14, 2021. Therefore, the OTAT will be assessed effective December 14, 2021." source: https://www.honolulu.gov/cms-bfs-menu/site-bfs-sitearticles/46066-otat.html


TAT- as you are familiar with is with the State which is currently 10.25% as of April 2022.

However OTAT is for the Oahu County which is running at 3%.


So depend on what your reporting interval is with TAT the due date for OTAT is the same just that the site to pay for the OTAT is different from that of the TAT site.

If you already have TAT license number there is no need to apply for OTAT separately.


Payment Period

  • For all calendar year taxpayers (including monthly, quarterly and semi-annual filers), the first OTAT payment for the initial partial period, beginning December 14, 2021 and ending December 31, 2021, is due on or before February 22, 2022.

  • For calendar year taxpayers who file on a monthly basis, the OTAT payment for the first full period (beginning January 1, 2022 and ending January 31, 2022) is also due on or before February 22, 2022.

  • For calendar year taxpayers who file on a quarterly basis, the OTAT payment for the first full period (beginning January 1, 2022 and ending March 31, 2022) is due on or before April 20, 2022.

  • For calendar year taxpayers who file on a semi-annual basis, the OTAT payment for the first full period (beginning January 1, 2022 and ending June 30, 2022) is due on or before July 20, 2022.

You can mail your payment of OTAT to


City & County of Honolulu Division of Treasury OTAT Office P.O. Box 29280 Honolulu, HI 96820

Note: Please do not send cash. All checks should be made payable to the “City & County of Honolulu” in U.S. dollars drawn on any U.S. bank. Attach your check to the payment voucher. The following information must be written on your check so payment will be properly credited if the check is separated from the payment voucher form:

  • OTAT

  • The filing period (MM/YYYY)

  • Your State TAT ID number

  • Your daytime phone number

  • Click here to download a payment voucher form (Form OTAT-1)

Or



Online: Credit, debit and Automated Clearing House (ACH) payments will be accepted via the City’s online payment portal at www.honolulu.gov/otatpay. A convenience fee of 3% will be applied to payments made by credit or debit cards. No fees will be assessed for payments made via ACH.


Click here to start first by registering yourself with an account on there.



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