The state Department of Taxation is pursuing an Airbnb records subpoena to obtain 10 years of booking and payment data as part of a broad investigation into whether Hawaiʻi vacation rental operators have paid required state taxes.
Attorney General Russell Suzuki last week asked Circuit Court for authorization to issue an administrative subpoena to Airbnb Inc., according to a court filing. The request is tied to an inquiry into compliance with Hawaiʻi’s general excise and transient accommodations tax laws.
Airbnb records subpoena would cover a decade of data
The proposed subpoena seeks all invoices, receipts, statements and confirmations for bookings and payments, along with the names, tax identification numbers and Social Security numbers of hosts. It also asks for the location of each rental, guest stay dates and lengths, and amounts paid. State law requires court approval for such an administrative subpoena when a target is not specifically identified.
The filing states the goal is to determine which operators have not paid their fair share of general excise and transient accommodations taxes. Officials said the department has not sought comparable records from other vacation rental platforms at this time.
A 2016 study commissioned by the Hawaiʻi Tourism Authority estimated that collecting hotel room taxes from Airbnb and similar platforms could generate $136 million in 2018, but the state was receiving only a fraction of that.
Airbnb response and policy context
Airbnb said it has received the request from the Department of Taxation and is reviewing it.
The push to address illegal vacation rentals and unpaid taxes intensified during this year’s primary campaign. Gov. David Ige pledged to use executive authority to collect taxes, describing an approach that involves reviewing listings, verifying suspected illegal operations and pursuing enforcement until the Legislature provides additional support.
Lawmakers have debated measures for four consecutive years to ensure Airbnb and transient vacation rentals pay both excise and hotel room taxes. In 2016, Ige vetoed a bill that would have allowed Airbnb to act as a tax collection agent for the state. Since then, similar proposals have stalled.
Critics of the 2016 bill argued it could have boosted tax collections while allowing illegal rentals to flourish, reducing housing options for residents and altering neighborhood character. Earlier this year, Ige rejected a memorandum of agreement from Airbnb that mirrored elements of the 2016 bill, saying it could worsen the proliferation of illegal rentals. He has said tax compliance must go hand in hand with ensuring properties are appropriately zoned and regulated, and he wants any agreement to bar Airbnb from promoting Hawaiʻi listings that lack proper zoning, a step he said the company has taken in other jurisdictions.
State enforcement ramps up
State Tax Director Linda Chu Takayama said there has been increased emphasis on transient accommodations tax collections under the Ige administration. The department’s Special Enforcement Section opened more than 300 investigations into transient rental businesses in the year ending June 30, using hotline complaints, data analytics and surveys to identify leads.
Lawmakers authorized six additional special enforcement investigator positions effective July 1, which will bring the section’s staffing to 13 once filled.
The push to address illegal vacation rentals and unpaid taxes intensified during this year’s primary campaign. Gov. David Ige pledged to use executive authority to collect taxes, describing an approach that involves reviewing listings, verifying suspected illegal operations and pursuing enforcement until the Legislature provides additional support.
