Were we cheated? Question about general excise tax and rental (apartments, attorney)

[hotzcatz]

I don't know if the State cares how much you charge for taxes, but you are supposed to give the amount you charge to the state, whatever it is. You can charge 50% taxes as long as you give that percentage to the state. The additional .167% many folks add to the 4% is to cover the tax they have to pay on the extra amount they have to get to be able to pay the tax.

Still, when you are paying over $3K for rent, what's an additional $150?

[NaniGirl]

I recently called the Consumer Protection Agency and asked what is the max a Landlord could charge, and they said 4.166%. Though there is no set amount stated in the tax laws, it clearly states in the Landlord/tenant code of conduct book that although the state has no ceiling on the amount, CPA laws do and its a 4.166%. I'm going through litigation against my Landlord at this moment, and this is what I've been told. This is if the amount is visible in your rental agreement.

[mdand3boys]

Originally Posted by NaniGirl

I recently called the Consumer Protection Agency and asked what is the max a Landlord could charge, and they said 4.166%. Though there is no set amount stated in the tax laws, it clearly states in the Landlord/tenant code of conduct book that although the state has no ceiling on the amount, CPA laws do and its a 4.166%. I'm going through litigation against my Landlord at this moment, and this is what I've been told. This is if the amount is visible in your rental agreement.

How much extra was your landlord charging you and for how long?

[hotzcatz]

Hmm, Oahu just raised their county tax to 4.5% so that will conflict with the CPA laws, no doubt.

If you are litigating with your landlord over the amount of tax paid, there is probably a lot more than that since it will cost a whole lot more to litigate than you could hope to recover from getting paid back whatever excess tax was paid. Unless of course, you are out of work or something and hoping to make money by litigating, some folks do try to do that occasionally although I'm not sure how well it works since frequently they lose their cases and have to pay their attorney fees themselves.

[persephone1]

That is definitely something that had to be writing and you should check to see if the landlord even has a General Excise Tax registration. The statute of limitations I think (maybe wrong) is 2 years. In any event it sounds like you got screwed big time. Especially since there was no written contract. Persephone

[persephone1]

Presently, 2009, the County of Maui and the State of Hawaii are going after people for not paying GET especially on rentals....new task force.

[persephone1]

Maybe GET is county based but I think it is State and if so it is 4.166 and they cannot charge 4.67, anotherwords round up. You should always make sure that is writing and before you rent check to see if the person even has a license it is posted on the internet. If it isn't in writing at the beginning of the tenancy I do believe the burden automatically goes to the landlord especially since they are the one benefiting and you weren't given written notice. Go to the Landlord Tenant Handbook do a search I believe this issue is addressed.

[persephone1]

That is not true in fact it is patently illegal. The maximum tax you can charge is by law only 4.166. They can write what ever they want in the lease/agreement but in court they would have to pay you back the money and you would win and they would most likely be sanctioned by the court. Just like you can't charge more for the rental deposit than the amount of rent you pay. And there is a cut off amount too....

[persephone1]

You can only charge 4.166 and you cannot round up to 4.167 that is illegal.

[persephone1]

Lia was ripped off because the maximum amount that the landlord could charge was 4.166 not 4.167. This handbook highlights areas of the landlord-tenant code. It does not duplicate or explain the complete text of the code. Persons desiring to review the complete text of the Hawaii Residential Landlord-Tenant Code should obtain a copy of Chapter 521, Hawaii Revised Statutes.
The Hawaii Residential Landlord-Tenant Code is the name of Chapter 521, of the Hawaii Revised Statutes (HRS). The section numbers that are cited throughout this handbook refer to the sections of Chapter 521. Since its creation in 1973, the Hawaii Residential Landlord-Tenant Code has been amended in almost every legislative session. This revised edition of the handbook is based upon the law as amended in the 2004 Session of the Hawaii State Legislature.
This handbook is for informational and reference purposes only, and does not provide legal advice. The information in this handbook is subject to change.
The organization of this handbook is based upon the same general categories that appear in the Code. The reader may note that the recurrent intent of the Code is equal justice for both landlords and tenants. Much of the confusion and difficulty so common in landlord-tenant disputes would be minimized or eliminated if there were better understanding and communication between landlords and tenants. One way of achieving this is through the use of clearly written agreements and understandings and insuring that the agreements are signed by the landlord and the tenant in duplicate with copies provided to each. Such points of agreement that are not clearly understood should be discussed, clarified and put into writing.
If you have questions on a landlord-tenant matter, call the Office of Consumer Protection 586-2634 or consult an attorney. For the neighbor islands, please refer to the phone numbers on the front cover.
THIS MATERIAL CAN BE MADE AVAILABLE FOR INDIVIDUALS WITH SPECIAL NEEDS IN BRAILLE, LARGE PRINT OR AUDIO TAPE. PLEASE SUBMIT YOUR REQUEST TO THE OFFICE OF CONSUMER PROTECTION DIVISION SECRETARY AT (808) 586-2636.