Hawaii governor vetoes vacation rental tax collection bill

HONOLULU — Hawaii Gov. David Ige is vetoing a bill that would require websites like Airbnb to collect and pay taxes on behalf of short-term vacation rental hosts.

Ige said Tuesday Honolulu recently passed a law regulating vacation rentals which raised issues not fully contemplated by the tax collection bill.

Advocates want the revenue the measure would raise. But critics worry it will hamper county efforts to crack down on illegal rentals and exacerbate the state’s housing shortage.

Senate Ways and Means Committee Chairman Sen. Donovan Dela Cruz said in April the bill would raise $46 million a year if it became law. He told his fellow lawmakers they would have to cut funding for programs if the state didn’t get the revenue the bill would generate.

Audrey McAvoy, The Associated Press