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General Excise Tax of 4%+ on pretty much everything, including rent.
Rentals under six months duration may also be liable for Transient Accomodations Tax of 9%.
And then there's the State Income Tax.
Most vacation rentals I have seen out there have a tax of 13.417%. I have not noticed many charging tax on a rental with a year+ lease though, perhaps its in the fine print
My taxes are pretty high. I currently see my taxes range from 8.00-8.875 on pretty much everything, of course, excluding groceries.
Figured I would wait to ask at my appointment next month, and Im sure there is PLENTY in the forums about this already, but perhaps quickly you can enlighten me. My small business is based out of California and I am hoping to continue it that way. Sole proprietor with two employees. I will have NO clients, business relations of any sort, or employees in Hawaii, only residing there. How will this work when filing taxes? Especially when many of my write offs will be purchased in Hawaii.
Most vacation rentals I have seen out there have a tax of 13.417%. I have not noticed many charging tax on a rental with a year+ lease though, perhaps its in the fine print
My taxes are pretty high. I currently see my taxes range from 8.00-8.875 on pretty much everything, of course, excluding groceries.
Figured I would wait to ask at my appointment next month, and Im sure there is PLENTY in the forums about this already, but perhaps quickly you can enlighten me. My small business is based out of California and I am hoping to continue it that way. Sole proprietor with two employees. I will have NO clients, business relations of any sort, or employees in Hawaii, only residing there. How will this work when filing taxes? Especially when many of my write offs will be purchased in Hawaii.
Your income while living here will now be subject to the 4.5%. It's a GET, not a sales tax, so it is on all gross receipts for everyone no matter what.
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This wouldnt be in addition to the 9.30+% I am paying now, would it? Maybe it is in my best interest to close down shop in California and reopen out there. Oh, I will have quite the list of questions when I get my taxes done next month.
It is in addition to the state and federal income tax.
If I am mistaken, someone will chime in.
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Hahahha! Good thing we dont drink milk! Haha! No! With all jokes aside, I definitely understand the cost differences. I will admit, my biggest concern is the cost of electricity. In seeing the difference in cost per consumed kilowatt hour and knowing my usage... Eeek! I have been researching cost of living differences, traveling/shipping expenses, pet quarantine, depreciation in homes and vehicles, for some time now. I feel prepared in that aspect. My father has resided there for sometime now and I have a few friends here that grew up on Kauai that do nothing but encourage my family and this move. I can prepare financially, and wouldnt make this move unless I felt 100% confident in my abilities to provide the necessities. It the unknown "un-expect-its" of a new place I am now trying to take into account.
I was more inquiring about...
Recap of Topics (read above for more details)
1.) Affordable Temporary Housing
2.) Island/Location & Housing Recommendations
3.) Getting Involved in the Community
4.) Slowing Our Lifestyle Down
... Not so much my financials. Though I will say is is refreshing, for I do sense your genuine concern! TY!
You ought to be able to use far less electricity in Hawaii. The moderate climate and range of outdoor activities should bring your electrical use down tremendously. Most homes don't have central air conditioning and I don't think I ever saw one that had a furnace.
If you're coming from California, you probably think you know something about the sun.
You don't.
Hawaii is significantly farther south, the cleaner atmosphere, and the moderate air temperature masks the fact that the more vertical sun rays are microwaving you. Be far more cautious with sun exposure in Hawaii than you're used to in California. Sunscreen, sunscreen, sunscreen.
Most vacation rentals I have seen out there have a tax of 13.417%. I have not noticed many charging tax on a rental with a year+ lease though, perhaps its in the fine print
Yes, that is a combination of 4.166% GET + 9.25% TAT = 13.4166% total, which applies on all the neighbor islands, for rentals of 6 months and less, UNLESS you have no other residence and are looking for permanent residence in Hawa'i, in which case the TAT does not apply.
For all other rentals of any length, the GET applies.
EXCEPT on Oahu, where the GET rate is 4.712%, due to the addition of an extra 0.546% "County Tax."
Another thing that is confusing, in addition to the other confusing things, is that in contrast to the sales and use taxes collected in other states, which are considered as owed by the buyer, the Hawaiian GET and TAT are owed by the seller, who is allowed to pass them along to the buyer, but is not obligated to. So some landlords quote a base rental amount, and then the additional amount payable by they lessee for the GET (and maybe TAT) amount, while other landlords simply quote a total monthly amount with the tax included. It's definitely something to ask about, because misunderstandings can be costly.
You ought to be able to use far less electricity in Hawaii. The moderate climate and range of outdoor activities should bring your electrical use down tremendously. Most homes don't have central air conditioning and I don't think I ever saw one that had a furnace.
If you're coming from California, you probably think you know something about the sun.
You don't.
Hawaii is significantly farther south, the cleaner atmosphere, and the moderate air temperature masks the fact that the more vertical sun rays are microwaving you. Be far more cautious with sun exposure in Hawaii than you're used to in California. Sunscreen, sunscreen, sunscreen.
Well, it may seem like it now. I thought so myself, then we got there and discovered that we hardly turned it on.
There, where? It all depends. I'm always surprised that people don't consider how much your precise location affects your perception of whether A/C is needed or not. Do you get sunbaked in the hot afternoons or not? Do you have cooling breezes and good cross ventilation or not?
It's true that central A/C is not very common across the state, but I think that has more to do with the cost of operation versus perceived need. Our electricity cost is 3X the national average, which means 3X the cost to run an A/C.
On the Kona side of the Big Island a big factor in how much A/C they use is Vog. Truth be told, it's probably a bigger factor for some people than the temperatures are, because for people who are sensitive to Vog, an A/C can help make it more tolerable. In the process of taking excess humidity out of the air they also help take the irritating sulfur compounds out of the air that cause some people such misery.
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