Honolulu weighs new bed-and-breakfast property tax category

HONOLULU (AP) — A bill being considered in Honolulu would create a new property tax category for homeowners operating bed-and-breakfast establishments.

The Honolulu City Council approved the first reading of the bill Wednesday. If passed, the bill could be in effect by July 1.

The Budget Committee could take up the bill this month, but would not establish a rate for the new category.

Tax rates for each category are determined by the City Council each June, officials said. The proposed category could fall somewhere between the standard residential category and the hotel-resort category.

The standard residential category is currently $3.50 for every $1,000 of assessed value, city officials said.

The hotel-resort category just increased by $1 this year to $13.90 for every $1,000 of assessed value.

Currently, those with nonconforming use certificates and operating in residential districts must pay the standard residential rates.

Under the proposal, those operating under nonconforming use permits would be required to pay the hotel-resort rate, officials said.