Short Term Rentals Rules on Kauai

Understanding Short-Term Rentals (STRs) on Kauai

On Kauai, any rental of a dwelling unit for less than 180 consecutive days is classified as a Transient Vacation Rental (TVR). These are subject to specific zoning and permitting regulations to balance tourism with community needs.

Where Are STRs Permitted?

• Visitor Destination Areas (VDAs): STRs are allowed only within designated VDAs, which include areas like Princeville, Poipu, parts of Kapaa, and Waipouli. Properties in these zones can operate as TVRs if they obtain the necessary permits.

• Outside VDAs: Properties located outside VDAs cannot operate as STRs unless they hold a Non-Conforming Use (NCU) certificate, which must have been obtained before March 30, 2009. No new NCU certificates are being issued. ​

Permit Requirements and Renewal

• Permits: Operating an STR requires obtaining a TVR permit. For properties outside VDAs with existing NCU certificates, these must be renewed annually.

• Renewal Process: Renewal applications must be submitted at least 60 days before the expiration date. Late submissions are not accepted, and failure to renew on time results in the loss of the permit.

Homestays

A homestay refers to renting a portion of a residence (up to three guest rooms) while the owner resides on-site. These are permitted within VDAs and require a homestay zoning permit. The owner must be physically present during the rental period.

Tax Obligations

STR operators must obtain:​

• General Excise Tax (GET) License: Required for all business activities in Hawaii.​

• Transient Accommodations Tax (TAT) License: Specific to rental accommodations.​Airbnb+7mykauairealty.com+7kauaikahuna.com+7

The current TAT rate is 10.25%, and the GET rate is 4%.

Recent Legislative Developments

In May 2024, Hawaii enacted Senate Bill 2919, granting counties greater authority to regulate STRs. This includes the power to phase out transient accommodations in residential or agricultural zones to address housing shortages. ​kauaikahuna.com+3GoSummer+3strprofitmap.com+3kauaivacationrentals.com+2kauaikahuna.com+2GoSummer+2

Compliance and Verification

To verify if a property is legally operating as an STR:​

• Approved Listings: The County of Kauai provides a list of approved homestays and non-conforming TVRs by Tax Map Key (TMK). ​kauairealestatepro.com+7Kauai County, HI+7Reddit+7

• Contact Information: For specific inquiries, contact the Kauai Planning Department at (808) 241-4050 or email planningdepartment@kauai.gov.​Airbnb

Navigating Kauai’s STR regulations requires careful attention to zoning laws, permitting processes, and tax obligations. As always, it’s advisable to consult with local authorities or legal experts when considering operating or investing in a short-term rental property on the island.​

If you have further questions or need assistance with specific properties, feel free to reach out to at 808 212 6633 or email me at db@luxutique.com