FORM TA-2                      HOW TO COMPLETE YOUR
INSTRUCTIONS 
(REV. 2023)                    TRANSIENT ACCOMMODATIONS TAX
                           ANNUAL RETURN AND RECONCILIATION 
                               (FORM TA-2)
                                                                   paid for optional goods and services such as food and bev-
INTRODUCTION                                                       erage services or beach chair or umbrella rentals shall be 
The Form TA-2 is used to summarize your TAT and TSO tax            excluded from fair market rental value.
activities for the taxable year. It may also be used to correct    If you do not have any gross rental or gross rental pro-
errors on the periodic tax returns (Form TA-1). As long as         ceeds and do not have any fair market rental values for 
your total gross rental or gross rental proceeds, fair market      the entire year, enter “0.00” on line 11. Please note that 
rental values, taxes due, penalty and interest are accurately      this annual return must be filed. 
reported and paid in full on your periodic returns, no addi-
tional tax will be due when filing the annual return. Form TA-2  The annual tax return must be filed on or before the 20th 
must be filed in addition to (not in lieu of) the periodic tran-   day of the 4th month following the close of your taxable year. 
sient  accommodations  tax  returns. To  correct  a  previously  For example, if you are a calendar-year taxpayer (i.e., your 
filed Form TA-2, file an amended return on Form TA-2.              tax year ends on December 31), then your annual tax return 
                                                                   must be filed on or before April 20 of the following year. 
The transient accommodations tax (TAT) is levied on the 
gross rental or gross rental proceeds derived from furnishing      If you are unable to file the annual return by the due date, 
transient accommodations. For taxable years beginning after        you may request an extension to file Form TA-2 by filing Form 
December 31, 2018, the TAT is also levied on the share of  GEW-TA-RV-6.
gross rental proceeds received by transient accommodations 
                                                                   The Department requires taxpayers whose TAT liability ex-
brokers,  travel  agents,  and  tour  packagers  who  enter  into 
                                                                   ceeds $4,000 for the taxable year, to file returns electronically.
arrangements to furnish transient accommodations at non-
commissioned negotiated contract rates. The rate is 10.25%.        Taxpayers whose liability for the TAT exceeds $100,000 per 
                                                                   year are required to pay the tax by Electronic Funds Transfer 
A “transient accommodation” is a room, apartment, house, 
                                                                   (EFT).
condominium, beach house, hotel room or suite, or similar 
living accommodation furnished to a transient person for less  If a payment is being made with Form TA-2, make your check 
than 180 consecutive days.                                         or money order payable to “Hawaii State Tax Collector.” Write 
                                                                   “TA,”  the  filing  period,  your  Hawaii  Tax  I.D.  No.,  and  your 
“Gross rental or gross rental proceeds” includes amounts 
                                                                   daytime phone number on the check. Attach your check or 
paid to you in the form of cash, goods, or services as com-
                                                                   money order where indicated on the front of Form TA-2.
pensation for furnishing a transient accommodation without 
any deductions for costs incurred in the operation of the tran-    Protective Claim — A protective refund claim is a claim filed 
sient accommodation. Gross rental or gross rental proceeds  to protect a taxpayer’s right to a potential refund based on 
also includes amounts received for entering into arrange-          a contingent event for a taxable period for which the statute 
ments to furnish transient accommodations and amounts  of limitations is about to expire. A protective claim is usually 
received for mandatory resort fees. The gross rental or gross  based on contingencies such as pending litigation or an on-
rental proceeds do not include the items shown at the top  going federal income tax audit or an audit in another state. 
of the “SCHEDULE OF TRANSIENT ACCOMMODATIONS  For more information see Tax Facts 2021-2.
TAX EXCLUSIONS, EXEMPTIONS,  AND DEDUCTIONS” 
(under Section 237D-1) on page 6 of these instructions.            Forms, instructions and publications are available on the De-
                                                                   partment’s website at tax.hawaii.gov or you may contact a 
The transient accommodations tax on time share occupancy  customer service representative at:
(TSO tax) is levied on the occupant of a time share vaca-
tion unit at the rate of 10.25% on the unit’s fair market rental   Voice: 808-587-4242 
value. The time share plan manager shall be liable for, and               1-800-222-3229 (Toll-Free)
pay to the State, the TSO tax.                                     Telephone for the Hearing Impaired: 
“Fair market rental value” is defined as an amount equal to               808-587-1418 
one-half of the gross daily maintenance fees that are paid                1-800-887-8974 (Toll-Free)
by the owner and that are attributable to the time share unit      Fax:   808-587-1488
located in Hawaii. Gross daily maintenance fees include 
maintenance  costs,  operational  costs,  insurance,  repair  Mail:       Taxpayer Services Branch 
costs, administrative costs, taxes, other than transient ac-              P.O. Box 259 
commodations taxes, resort fees, and other costs including                Honolulu, HI  96809-0259
payments  required  for  reserves  or  sinking  funds. Amounts 

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FILLING IN YOUR FORM TA-2 (ANNUAL RETURN AND RECONCILIATION)
        NOTE: The bold circled numbers on the sample form correspond to the steps in the instructions.

                                               ABOUT THIS FORM
Form TA-2 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 — Enter the numeric (two digit) month, day, and year  STEP 4 — Enter the last 4 digits of your FEIN or SSN in the 
that your tax year ends in the area provided on the top of  area provided on the top of page 1 and of page 2. 
page 1 and of page 2. For example, if your tax year ends 
December 31, 2024, you would enter 12-31-24.                 AMENDED RETURNS — If you are filing an amended re-
STEP 2 — Write your name (taxpayer’s name) in the area  turn, put an “X” in the box at the top of the return on page 1 
provided on the top of page 1 and of page 2.                 indicating that the return is an amended return.
STEP 3 — Enter your Hawaii Tax I.D. No. in the area pro-
vided on the top of page 1 and of page 2.
        COMPUTING THE TAXES (fig. 2.2) (fig. 2.3) (fig. 2.4)

fig. 2.2

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STEP 5 — Complete lines 1 through 4 of Column a,  just  reported on the periodic tax returns. If an error was made on 
as you did on your periodic tax returns. The difference be-      one or more of the periodic tax returns in reporting the total 
tween the periodic and annual tax returns is that the amounts  gross rental or gross rental proceeds, or the total fair market 
reported on the annual tax return are the total gross rental  rental values in the applicable districts, the annual tax return 
proceeds in the applicable districts for the entire year. The  is used to correct the amounts reported on your periodic re-
annual return is a reconciliation of the total gross rental or  turns for the taxable year and to show the amount of any 
gross rental proceeds and the total fair market rental values  additional taxes payable or refund due.

fig. 2.2
STEP 6 — Turn to the reverse side of Form TA-2, “PART            NOTE: Deductions allowed on your income tax returns, such 
VI  —  SCHEDULE  OF  EXEMPTIONS/DEDUCTIONS.”  Fill  as operating expenses or management fees, are not deduct-
in the amounts and description of the exemptions or deduc-       ible on the TAT return. 
tions being claimed for the taxable year. Each exemption or 
deduction must be separately listed. For each exemption or       STEP 7 — Add the amounts of exemptions/deductions that 
deduction you claim: (i) In the “DISTRICT” column, enter the     are separately listed and enter the result on the “Grand Total 
number  that  represents  the Tax  District  where  the  income  of Exemptions and Deductions” line in Part VI. If you do not 
was earned (1 for Oahu, 2 for Maui, 3 for Hawaii and 4 for       have any exemptions or deductions, enter “0.00.” 
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” on page 6 of these instructions.                 Column c is your “TAXABLE PROCEEDS.” 

fig. 2.3
STEP 10 — Part II is to be completed only by time share plan     STEP 11 — Add lines 1 through 4 of Column c and lines 5 
managers to report total fair market rental values and TSO  through 8. Enter the total on line 9, the “TOTAL AMOUNT 
tax due for the taxable year.                                    TAXABLE.”
Complete Part II just as you did on your periodic returns. The   STEP 12 — Multiply the amount on line 9 by the amount on 
difference between the periodic and annual tax returns is that   line 10 (0.1025) and enter the result on line 11. This is the 
the numbers reported on the annual tax return represent the  “TOTAL TAXES DUE.” (NOTE: Line 11 must be filled in. If 
total fair market rental values in the applicable districts for the  you have no taxes due, enter “0.00” on line 11.) 
entire year.

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            FINISHING THE TAX RETURN (fig. 2.4) (fig. 2.5) (fig. 2.6)

fig. 2.4
STEP 13 — Add all the penalties and interest that have been      STEP 16 — Leave line 15 blank (to be used for Amended 
assessed on taxes owed on the periodic returns for the tax-      Returns only.)
able year, enter the results in the parts for “PENALTY” and 
“INTEREST” of line 12 and enter the total of the two amounts     STEP 17 — Enter the amount from line 14 on line 16 “NET 
on line 12.                                                      PAYMENTS MADE.”
STEP 14 — Add the amounts on lines 11 and 12 and enter           STEP 18 — Compare the amounts on lines 13 and 16. If they 
the result on line 13, “TOTAL AMOUNT.”                           are the same, go to step 23. If the amount on line 13 is less 
                                                                 than the amount on line 16, subtract line 13 from line 16 and 
STEP 15 — Add the total amount of transient accommoda-           enter the result on line 17 “CREDIT TO BE REFUNDED” and 
tions taxes, penalties, and interest paid with your periodic tax  go to step 23.
returns, delinquency notices, and assessment notices for the 
taxable year. Enter this amount, less any refunds received       STEP 19 — If the amount on line 13 is more than the amount 
for the tax year, on line 14 “TOTAL PAYMENTS MADE LESS           on line 16, subtract line 16 from line 13 and enter the result 
ANY REFUNDS RECEIVED FOR THE TAX YEAR.”                          on line 18 “ADDITIONAL TAXES DUE.”

fig. 2.5
STEP 20 — Late Filing of Return. The penalty for failure to      for payment, whether or not that first calendar day falls on a 
file a return on time is assessed on the tax due at a rate of    Saturday, Sunday, or legal holiday.
5% a month, or part of a month, from the due date to the filing 
date, up to a maximum of 25%.                                    After computing the penalty and interest amounts, enter the 
                                                                 results in the “PENALTY” and “INTEREST” parts of line 19.   
Interest — Interest at the rate of 2/3 of 1% a month, or part of  If you are unable to compute the penalty and interest, leave 
a month, shall be assessed on the unpaid taxes and penalties  the parts of line 19 blank. The Department will compute them 
beginning with the first calendar day after the date prescribed  for you and send you a bill.

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STEP 21 — Add the amounts on lines 18 and 19 and enter  check or money order. Send your check or money order and 
the result on line 20, “TOTAL AMOUNT DUE AND PAYABLE.”  the return to:
STEP 22 — NOTE: If you are         not submitting a check with               Hawaii Department of Taxation 
your return, enter “0.00” on line 21.                                        P.O. Box 1425 
Write the “AMOUNT OF  YOUR PAYMENT,” including any                           Honolulu, HI  96806-1425
penalty and interest, on line 21. Attach your check or money      Do not send cash.  Form TA-2, including an amended re-
order for this amount payable to “Hawaii State Tax Collector”     turn, can also be filed and payment made electronically at 
in U.S. dollars drawn on any U.S. bank where indicated on         hitax.hawaii.gov.
the front of the return. Write “TA,” the filing period, your Ha-
waii Tax I.D. No., and your daytime phone number on your 

fig. 2.6
STEP 23 —  “PART VII — RECONCILIATION OF GROSS  Part VII and report the result on line 3 of Part VII. This is your 
RENTAL OR GROSS RENTAL PROCEEDS.” Add lines 1  gross proceeds from furnishing transient accommodations 
through 4 of Column a in Part I and enter the total on line 1  that are reportable on line 13, Column c of your General Ex-
of Part VII. Exclude general excise taxes visibly passed on,  cise/Use Tax Annual Return and Reconciliation (Form G-49).
transient accommodations taxes visibly passed on, and any 
proceeds attributable to transient accommodations furnished       STEP  24 — Sign  your  tax  return. The  sole  proprietor,  a 
at no charge. On line 2 of Part VII, enter the total general      partner or member, corporate officer, or an authorized agent 
excise taxes on transient accommodations that were visibly        must sign the tax return, state his/her title, write the date the 
passed on for the year. Add the amounts on lines 2 and 3 of       return is signed, and write a daytime contact phone number.

                                       FILING AN AMENDED RETURN
If you file your Form TA-2 and later become aware of any          Step 16 — Enter on line 15 the amount of credit claimed on 
changes you must make to reported gross rental or gross  your original Form TA-2.
rental proceeds or exemptions/deductions, you may file an 
amended return on Form TA-2 to change the Form TA-2 you           Step 17 — Subtract line 15 from line 14 and enter the result 
already filed. Put an “X” in the box at the top of the return on  on line 16 “NET PAYMENTS MADE.”
page 1 to indicate that the return is an amended return. The      Step 18 — If line 13 is less than line 16, subtract line 13 
steps below refer to the steps in Figures 2.0 through 2.6         from line 16 and enter the result on line 17, “CREDIT TO BE 
Steps 1 through 12 —     Enter the correct amounts of gross       REFUNDED.” 
rental or gross rental proceeds, exemptions/deductions, tax-      Step 19 — If line 13 is more than line 16, subtract line 16 
able proceeds, and taxes due that should have been reported       from line 13, enter the result on line 18 “ADDITIONAL TAXES 
on the original Form TA-2. (NOTE: When filing an amended          DUE.”
return, each entry that was correctly reported on the original 
Form TA-2 also must be entered on the appropriate line. Oth-      Step 20 — If the amended Form TA-2 is being filed after the 
erwise, a figure of -0- will be used in place of each unreported  due date of the original Form TA-2, and there is an amount 
number.)                                                          entered on line 18, enter on line 19 the amount of any penalty 
                                                                  and/or interest now due. On a timely filed original Form TA-2, 
Step 13 — Enter on line 12 the amounts of penalty and/or          a penalty of 20% of the tax due will be assessed if any tax 
interest assessed as of the date the amended return is filed.     remains unpaid after 60 days from the prescribed due date of 
Step 14 — Add the amounts on lines 11 and 12 and enter the        the original Form TA-2. This penalty is applicable to amended 
result on line 13 “TOTAL AMOUNT.”                                 Forms TA-2 for timely filed original Forms TA-2. Interest at 
                                                                  the rate of 2/3 of 1% per month or part of a month shall be 
Step 15 — Enter on line 14 the total amount of taxes, ad-         assessed on unpaid taxes and penalties assessed beginning 
ditional assessments, and penalty and/or interest paid,           with the first calendar day after the date prescribed for pay-
less any  refunds  received  for  the  year.  Include  payments   ment, whether or not that first calendar day falls on Saturday, 
made with the original periodic and annual returns, as well  Sunday, or legal holiday.
as any supplemental payments made after they were filed. 
(REMINDER: Payments are applied first to recover costs in-        Step 21 — Add lines 18 and 19 and report the total on line 23 
curred by the Department, then to any interest due, then to       “TOTAL AMOUNT DUE AND PAYABLE.”
penalties, and finally, to taxes.)                                Follow the instructions in Steps 22, 23 and 24 above to finish 
                                                                  your return and submit it to the Department. 

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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 
       received 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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