Kailua-Kona Short-Term Rental Regulations

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Permit & Licensing

Short-Term Vacation Rental (STVR) Registration

This permit type does not require primary residence.

Application Process

Owner submits registration form to the Planning Department verifying active State GET and TAT licenses and paid-up County property taxes, certifying required parking, submitting a site plan showing rental rooms and parking, and (for nonconforming units) sending notification letters to owners/lessees within 300 feet of the property

Tax Obligations

Combined rate: 18.5% of gross rental income.

Collection: Self-remit; operators with a valid State TAT number are automatically deemed registered for HCTAT and do not register separately with the County

Filing: Monthly, quarterly, or semiannual via State Form TA-1, due the 20th of the month following the filing period; annual reconciliation via Form TA-2 due the 20th day of the fourth month after the taxable year ends

Rental Limits

Kailua-Kona does not impose an annual cap on the number of nights you can rent. Each individual stay must be 30 consecutive days or less.

Occupancy & Density Limits

No more than 5 bedrooms may be rented per short-term vacation rental building site

Zoning & Restrictions

• New STVRs permitted only in V (Village), CG (General Commercial), and CV (Commercial-Village) districts; residential and commercial districts within General Plan Resort and Resort Node areas; and RM district for condominium multi-family dwellings under HRS chapters 514A/514B.
• Prohibited in single-family residential and agricultural zones; pre-existing units outside permitted zones may continue only under a Nonconforming Use Certificate

Insurance & Safety

Insurance

Kailua-Kona does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Dwelling must have final building, electrical, and plumbing permit approvals from the building division before use as a short-term vacation rental

Penalties for Non-Compliance

Criminal violation: first offense fined up to $500; subsequent conviction within 5 years fined $500-$1,000; each additional day of continuing violation is a separate offense

Compliance Checklist

Follow these steps to legally operate a short-term rental in Kailua-Kona:

1. Meet safety requirements. Dwelling must have final building, electrical, and plumbing permit approvals from the building division before use as a short-term vacation rental.
2. Apply for Short-Term Vacation Rental (STVR) Registration. Submit application + $500 fee.
3. Register for tax accounts. Set up lodging tax accounts with Hawaii Department of Taxation; Hawai'i County TAT Office, Department of Finance.
4. Collect and remit taxes. 18.5% on all bookings.
5. Renew annually. $250/year (Nonconforming Use Certificate annual renewal only; standard STVR registration has no separate renewal fee).

Frequently Asked Questions

Do you need a permit to run an Airbnb in Kailua-Kona?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Kailua-Kona requires a Short-Term Vacation Rental (STVR) Registration.

Are there major restrictions on short-term rentals in Kailua-Kona?

Yes — New STVRs permitted only in V (Village), CG (General Commercial), and CV (Commercial-Village) districts; residential and commercial districts within General Plan Resort and Resort Node areas. Review the full rules above before listing.

How much does a short-term rental permit cost in Kailua-Kona?

A Short-Term Vacation Rental (STVR) Registration in Kailua-Kona costs $500 per year.

Does Kailua-Kona require a short-term rental to be your primary residence?

No. Kailua-Kona allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Kailua-Kona?

Kailua-Kona does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Kailua-Kona?

Short-term rental stays in Kailua-Kona are subject to a combined 18.5% in lodging taxes. This combines 11.00% Hawaii State Transient Accommodations Tax (TAT) + 3% Hawaii County Transient Accommodations Tax (HCTAT) + 4.5% (max pass-on 4.712%) Hawaii General Excise Tax (GET). Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Kailua-Kona?

Penalties run up to $1,000 (see the Penalties section for the full schedule).