FORM TA-1                       HOW TO COMPLETE YOUR PERIODIC 
INSTRUCTIONS 
(REV. 2022)       TRANSIENT ACCOMMODATIONS TAX RETURN 
                                (FORM TA-1)

INTRODUCTION                                                       commodations taxes, resort fees, and other costs including 
                                                                   payments  required  for  reserves  or  sinking  funds. Amounts 
The transient accommodations tax (TAT) is levied on the  paid for optional goods and services such as food and bev-
gross rental or gross rental proceeds derived from furnishing  erage services or beach chair or umbrella rentals shall be 
transient accommodations. For taxable years beginning after  excluded from fair market rental value.
December 31, 2018, the TAT is also levied on the share of 
                                                                   The TAT returns (Form TA-1) must be filed on a periodic ba-
gross rental proceeds received by transient accommodations 
                                                                   sis depending on the amount of TAT or TSO tax you have to 
brokers,  travel  agents,  and  tour  packagers  who  enter  into 
                                                                   pay during the year.  You must file monthly if you will pay 
arrangements to furnish transient accommodations at non-
                                                                   more than $4,000 in TAT or TSO tax per year. You may file 
commissioned negotiated contract rates. The rate is 10.25%.
                                                                   quarterly if you will pay $4,000 or less in TAT or TSO tax per 
A “transient accommodation” is a room, apartment, house,           year. You may file semiannually if you will pay $2,000 or less 
condominium, beach house, hotel room or suite, or similar          in TAT or TSO tax per year. When changing your filing period, 
living accommodation furnished to a transient person for less  please complete Form BB-1.
than 180 consecutive days.
                                                                   Taxpayers  filing  more  frequently  than  is  required  are  filing 
“Gross rental or gross rental proceeds” includes amounts  returns that cannot be properly tracked. To address this the 
paid to you in the form of cash, goods, or services as compen-     Department  of  Taxation  will  change  the  required  filing  fre-
sation for furnishing a transient accommodation without any        quency of taxpayers who file more frequently than is required.
deductions for costs incurred in the operation of the transient 
                                                                   Form TA-1 is due with payment on or before the 20th day of 
accommodation. Gross rental or gross rental proceeds also 
                                                                   the calendar month following the close of the filing period.
includes amounts received for entering into arrangements to 
furnish transient accommodation and amounts received for           The Department requires taxpayers whose TAT liability ex-
mandatory resort fees. The gross rental or gross proceeds          ceeds $4,000 for the taxable year, to file returns electronically.
do not include the items shown at the top of the “SCHEDULE 
                                                                   Taxpayers whose liability for the TAT exceeds $100,000 per 
OF TRANSIENT ACCOMMODATIONS TAX EXCLUSIONS, 
                                                                   year are required to pay the tax by Electronic Funds Transfer 
EXEMPTIONS AND DEDUCTIONS” (under Section 237D-1) 
                                                                   (EFT).
on page 6 of these instructions.
                                                                   If a payment is being made with Form TA-1, make your check 
The transient accommodations tax on time share occupancy 
                                                                   or money order payable to “Hawaii State Tax Collector.” Write 
(TSO tax) is levied on the occupant of a time share vaca-
                                                                   “TA,”  the  filing  period,  your  Hawaii  Tax  I.D.  No.,  and  your 
tion unit at the rate of 10.25% on the unit’s fair market rental 
                                                                   daytime phone number on the check. Attach your check or 
value. The time share plan manager shall be liable for, and 
                                                                   money order where indicated on the front of Form TA-1.
pay to the State, the TSO tax.
“Fair market rental value” is defined as an amount equal to        Protective Claim — A protective refund claim is a claim filed 
                                                                   to protect a taxpayer’s right to a potential refund based on 
one-half of the gross daily maintenance fees that are paid 
                                                                   a contingent event for a taxable period for which the statute 
by the owner and that are attributable to the time share unit 
                                                                   of limitations is about to expire. A protective claim is usually 
located in Hawaii. Gross daily maintenance fees include 
                                                                   based on contingencies such as pending litigation or an on-
maintenance  costs,  operational  costs,  insurance,  repair 
                                                                   going federal income tax audit or an audit in another state. 
costs, administrative costs, taxes, other than transient ac-
                                                                   For more information see Tax Facts 2021-2.

                                IMPORTANT!!!
Write “TA,” the filing period, your Hawaii Tax I.D. No. and your   Forms, instructions, and publications are available on the De-
daytime phone number on your check so that it may be prop-         partment’s website at tax.hawaii.gov or you may contact a 
erly credited to your account. If you do not have any gross        customer service representative at:
rental or gross rental proceeds and do not have any fair 
                                                                   Voice:   808-587-4242 
market rental value and the result is no TAT and TSO tax 
                                                                            1-800-222-3229 (Toll-Free)
liability, enter “0.00” on line 11.  Please note that this pe-
riodic return must be filed.                                       Telephone for the Hearing Impaired: 
                                                                            808-587-1418 
To correct a previously filed Form TA-1, file an amended re-
                                                                            1-800-887-8974 (Toll-Free)
turn on Form TA-1.
                                                                   Fax:     808-587-1488
                                                                   Mail:    Taxpayer Services Branch 
                                                                            P.O. Box 259 
                                                                            Honolulu, HI  96809-0259

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        FILLING IN YOUR FORM TA-1 (PERIODIC RETURN)
        NOTE: The bold circled numbers on the sample form correspond to the steps in the instructions. 

                                               ABOUT THIS FORM
Form TA-1 is designed for electronic scanning that permits  4.  Do NOT print outside the boxes.
faster processing with fewer errors.  To avoid delays:            5.  Do NOT use dollar signs, slashes, dashes or parentheses 
1.  Print amounts only on those lines that are applicable.        in the boxes.
2.  Use only a black or dark blue ink pen. Do not use red  6.  We recommend that you print a new form from our 
ink, pencils, felt tip pens, or erasable pens.                    website (tax.hawaii.gov) each time you need it.  The 
3.  Because this form is read by a machine, please print          form’s  QR  code is necessary to  process the return.  
your numbers inside the boxes like this:                          Excessive photocopying of a photocopy will degrade the 
                                                                  QR code, and the QR code will become unreadable.
                                                                  7.  Please use a color printer and print in color.
        1234567890X

        THE TOP OF THE TAX RETURN (fig. 2.0) (fig. 2.1)

fig. 2.0

fig. 2.1
STEP 1 — Write your name (taxpayer’s name) in the area            Period of January through March 2023 = 03/23; Semiannual 
provided on the top of page 1 and of page 2.                      Period of January through June 2023 = 06/23).

STEP 2 — Enter your Hawaii Tax I.D. No. in the area pro-          AMENDED RETURNS — If you are filing an amended re-
vided on the top of page 1 and of page 2.
                                                                  turn, put an “X” in the box at the top of the return on page 1 
STEP 3 — Enter the last 4 digits of your FEIN or SSN in the  indicating that the return is an amended return.
area provided on the top of page 1 and of page 2.
STEP 4 — For “PERIOD ENDING” at the top of page 1 and of 
page 2, enter the filing period information with the appropriate 
numeric (two digit) month and year for the last month of the 
filing period (e.g., Month of January 2023 = 01/23; Quarterly 

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                       COMPUTING THE TAXES (fig. 2.2) (fig. 2.3) (fig. 2.4)

fig. 2.2
STEP 5 — Column a, lines 1 through 4 of Part I. Enter the  commodations are located. For example, if you have gross 
total gross rental or gross rental proceeds during the period  rental proceeds attributable to transient accommodations on 
covered by the return.                                               the island of Oahu and on the island of Maui, the total gross 
                                                                     rental proceeds attributable to Oahu must be reported on line 
Please  note  that  if  you  have  gross  rental  or  gross  rental 
                                                                     1 and the total gross rental proceeds attributable to the tran-
proceeds attributable to transient accommodations in more 
                                                                     sient accommodations on Maui must be separately reported 
than one taxation district, you must report them separately 
                                                                     on line 2.
according to the taxation district in which the transient ac-

fig. 2.3
STEP 6 — Turn to Part VI on the reverse side of Form TA-             NOTE:  Deductions allowed on your net income tax returns, 
1, “SCHEDULE OF EXEMPTIONS/DEDUCTIONS.”  Fill in                     such as operating expenses and management fees, are not 
the amount and description of the exemptions or deductions  deductible on the transient accommodations tax return.
being claimed for each taxation district.  Each exemption or 
deduction must be separately listed.  For each exemption or          STEP 7 — Add the amounts of exemptions/deductions that 
                                                                     are separately listed and enter the result on the “
deduction you claim: (i) In the “DISTRICT” column, enter the                                              Grand Total 
number  that  represents  the Tax  District  where  the  income      of Exemptions and Deductions” line in Part VI. If you do not 
                                                                     have any exemptions or deductions, enter “0.00.”
was earned (1 for Oahu, 2 for Maui, 3 for Hawaii and 4 for 
Kauai); (ii) in the “ED CODE” column enter the code for the          STEP 8 — Enter the total amount of exemptions and deduc-
type of exemption or deduction being claimed. The allowable  tions in each district in Column b of Part I.
exemptions and deductions, along with the code number for 
each, are listed in the “SCHEDULE OF  TRANSIENT AC-                  STEP 9 — Subtract the amounts in Column b, if any, from 
COMMODATIONS  TAX  EXCLUSIONS,  EXEMPTIONS,                          the amounts in Column a and enter the results in Column c.  
AND DEDUCTIONS” (under Section 237D-3) on page 6 of                  Column c is your “TAXABLE PROCEEDS.” 
these instructions.

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fig. 2.4
STEP 10 — Part II is to be completed only by time share plan  according to the taxation district in which the time share prop-
managers to report total fair market rental values and TSO  erties are located.
tax due for the periodic filing period.
                                                               STEP 11 — Add lines 1 through 4 of Column c and lines 5 
Report the total fair market rental value during the period  through 8. Enter the total on line 9, the “TOTAL AMOUNT 
for all resort time share vacation plans represented by you  TAXABLE.”
on lines 5 through 8.  To obtain the total fair market rental 
value, add the amounts from line 31 on each of the Forms       STEP 12 — Multiply the amount on line 9 by the amount on 
                                                               line 10 (0.1025) and enter the result on line 11.  This is the 
TA-42, “Time Share Occupancy Worksheet — Calculation of 
Total Fair Market Rental Value.” Please note that if you have                       NOTE: Line 11 must be filled in. If 
                                                               “TOTAL TAXES DUE.” (
                                                               you have no taxes due, enter “0.00” on line 11.) 
time share vacation plans in more than one taxation district, 
you must report the total fair market rental value separately 

                                       AMENDING THE RETURN (fig. 2.5)

fig. 2.5
If you file your Form TA-1 and later become aware of any       STEP 13 — As of the date the amended return is filed, enter 
changes you must make to reported gross rental or gross        on line 12 the amounts of penalty and/or interest assessed 
rental proceeds or exemptions/deductions, you may file an      for the period. Penalty and interest are generally assessed 
amended return on Form TA-1 to change the Form TA-1 you        because the original return was filed after the filing deadline, 
already filed. Do NOT file an amended Form TA-1 if the Tran-   or because the taxes due were not paid in full by the filing 
sient Accommodations Tax Annual Return & Reconciliation,  deadline.
Form TA-2, has already been filed for the tax year. When 
                                                               STEP 14 — Add the amounts on lines 11 and 12 and enter 
filing an amended return,  each entry that was correctly       the result on line 13 “TOTAL AMOUNT.”
reported on the original Form TA-1 also must be entered 
on the appropriate line. Otherwise, a figure of -0- will be    STEP 15 —   Enter on line 14 the total amount of taxes, ad-
used in place of each unreported number. For amended           ditional assessments, and penalty and/or interest paid, less 
returns, complete steps 13 through 18 below.(NOTE:  If you     any refunds received for the period.  Include payments made 
are not filing an amended return, skip steps 13 through        with the original periodic return, as well as any supplemental 
18 and go to step 19.)                                         payments made after the original periodic return was filed.  
                                                               (REMINDER: Payments are applied first to recover costs in-

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curred by the Department, then to any interest due, then to        STEP 17 — If line 13 is more than line 14, subtract line 14 
penalties, and finally, to taxes.)                                 from line 13, enter the result on line 16 “ADDITIONAL TAXES 
                                                                   DUE.”
STEP 16 — If line 13 is less than line 14, subtract line 13 
from line 14, enter the result on line 15 “CREDIT TO BE RE-
FUNDED,” and skip to step 22.

                                   FINISHING THE TAX RETURN (fig. 2.6) (fig. 2.7)

fig. 2.6
STEP 18 — If the amended Form TA-1 is being filed after the        the parts of line 17 blank.  The Department will compute them 
due date of the original Form TA-1, and there is an amount  for you and send you a bill.
entered on line 16, enter on line 17 the amount of any pen-
alty and/or interest now due.  On a timely filed original Form     STEP 20 — Add the amounts on lines 11 and 17 and enter 
                                                                   the result on line 18, “TOTAL AMOUNT DUE AND PAYABLE.” 
TA-1, a penalty of 20% of the tax due will be assessed if any 
                                                                   (
tax remains unpaid after 60 days from the prescribed due           NOTE:  If  you  are  filing  an AMENDED  RETURN,  add  the 
                                                                   amounts on lines 16 and 17 and enter the result on line 18.) 
date of the original Form TA-1.  This penalty is applicable 
to amended Forms TA-1 for timely filed original Forms TA-1.        STEP 21 — NOTE   : If you are   not submitting a check with 
Interest at the rate of 2/3 of 1% per month or part of a month     your return, enter “0.00” on line 19.
shall be assessed on unpaid taxes and penalties assessed 
beginning with the first calendar day after the date prescribed    Write  the  “AMOUNT  OF  YOUR  PAYMENT,”  including 
for payment, whether or not that first calendar day falls on       any penalty and interest, on line 19. Attach your check or 
Saturday, Sunday, or legal holiday.                                money order for this amount payable to “Hawaii State 
                                                                   Tax Collector” in U.S. dollars drawn on any U.S. bank 
STEP 19 — Late Filing of Return (NOTE: If you are filing an        where  indicated  on  the  front  of  the  return.  Write  “TA,” 
amended return, skip this step and go to step 20.) The pen-        the  filing  period,  your  Hawaii  Tax  I.D.  No.,  and  your  day-
alty for failure to file a return on time is assessed on the tax   time  phone  number  on  your  check  or  money  order. 
due at a rate of 5% a month, or part of a month, from the due  Send your check or money order and the return to:
date to the filing date, up to a maximum of 25%.                                    Hawaii Department of Taxation 
Interest—Interest at the rate of 2/3 of 1% a month, or part of a                    P.O. Box 1425 
month, shall be assessed on the unpaid taxes and penalties                          Honolulu, HI  96806-1425
beginning with the first calendar day after the date prescribed    Do not send cash.  Form TA-1, including an amended re-
for payment, whether or not that first calendar day falls on a     turn, can also be filed and payment made electronically at 
Saturday, Sunday, or legal holiday.                                hitax.hawaii.gov.
After computing the penalty and interest amounts, enter the 
results in the “PENALTY” and “INTEREST” parts of line 17.   
If you are unable to compute the penalty and interest, leave 

fig. 2.7
STEP 22 —Sign your tax return.  The sole proprietor, a partner or member, corporate officer, or an authorized agent must 
sign the tax return, state his/her title, write the date the return is signed, and write a daytime contact phone number.

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   SCHEDULE OF TRANSIENT ACCOMMODATIONS TAX EXCLUSIONS, 
              EXEMPTIONS, AND DEDUCTIONS  
     (NOTE: All section references are to the Hawaii Revised Statutes)

Section 237D-1:  Gross rental or gross rental proceeds do not include:
    (1)  The amount  of transient accommodations  taxes passed-on,  collected,  and  re-
     ceived from the consumer.
    (2)  The amount of general excise taxes passed-on, collected, and received from the  
     consumer.
    (3)  Charges for guest amenities, including meals, beverages, telephone calls, laun-
     dry, and service charges. (Section 18-237D-1-03(c), Hawaii Administrative Rules)
    (4)  Accounts charged off as worthless for income tax purposes by an accrual basis 
     taxpayer. (Section 18-237D-1-03(e), Hawaii Administrative Rules)
    Division of gross rental or gross rental proceeds:
     Where transient accommodations are furnished by an operator through an arrange-
     ment with a transient accommodations broker, travel agency, or tour packager at 
     noncommissionable negotiated contract rates and the gross rental or gross rental 
     proceeds are divided between the operator and the transient accommodations 
     broker, travel agency, or tour packager, the TAT shall apply to each operator and 
     transient accommodations broker, travel agency, or tour packager with respect to 
     that person’s respective portion of the proceeds.
Section 237D-3:  The following are exempt from the Transient Accommodations Tax:                  ED Code
    (1)  Health care facilities including all such facilities enumerated in Section 321-11(10).................130
    (2)  School dormitories of a public or private educational institution providing education 
     in grades kindergarten through twelve, or of any institution of higher education. .....................150
    (3)  Lodging  provided  by  nonprofit  corporations  or  associations  for  religious,  chari-
     table, or educational purposes; provided that this exemption shall apply only to 
     the activities of the religious, charitable, or educational corporation or association 
     as such and not to any rental or gross rental the primary purpose of which is to 
     produce income even if the income is used for or in furtherance of the exempt 
     activities of such religious, charitable, or educational corporation or association. ....................140
    (4)  Living  accommodations  for persons  in the military  on permanent  duty assign-
     ment to Hawaii, including  the furnishing  of transient  accommodations  to those 
     military personnel  who receive temporary lodging  allowances  while seeking 
       accommodations in Hawaii or while awaiting reassignment to new duty stations  
     outside the State. ......................................................................................................................180
    (5)  Low-income renters receiving rental subsistence from the state or federal govern-
     ments and whose rental periods are for durations shorter than sixty days. ..............................120
    (6)  Operators of transient accommodations who furnish accommodations to full-time 
     students enrolled in an institution offering post-secondary education.  The direc-
     tor of taxation shall determine what shall be deemed acceptable proof of full-time  
     enrollment.   ..............................................................................................................................160
     This exemption shall also apply to operators who furnish transient accommoda-
     tions to students during summer employment. .........................................................................170
    (7)  Accommodations furnished without charge such as, but not limited to, complimen-
     tary accommodations  ...............................................................................................................100
     Accommodations  furnished  to contract personnel  such as physicians,  golf or 
     tennis professionals, swimming and dancing instructors, and other personnel to 
     whom no salary is paid or to employees who receive room and board as part of 
     their salary or compensation. ....................................................................................................190
    (8)  Accommodations  furnished  to  foreign  diplomats  and  consular  officials  who  are 
     holding  cards  issued  or  authorized  by  the  United  States  Department  of  State 
     granting them an exemption from state taxes. ..........................................................................                     110

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