RELATING TO THE TRANSIENT ACCOMMODATIONS TAX.

HB 889 creates a refundable tax credit for Hawaii taxpayers who pay the transient accommodations tax, which applies to hotels and vacation rentals. The credit directly benefits visitors staying in these accommodations by allowing them to receive a cash refund if the tax paid exceeds the credit amount. The bill's key provision is the refundable nature of the credit, meaning taxpayers get money back rather than just offsetting their tax liability. This policy change simplifies tax recovery for travelers without altering the underlying tax rate. The bill is currently pending in the 2026 legislative session.