Honolulu City Council has proposed a bill that would create a new property tax category for homeowners operating bed-and-breakfast establishments.
The Star-Advertiser reports that City Council approved the first-reading of the bill Wednesday and the Budget Committee could take up the bill this month.
City officials say the bill could be in effect by July 1 if passed.
Officials say tax rates for each category are determined by ordinance by the Council each June.
Officials say the new category could fall somewhere between the standard residential category currently $3.50 for every $1,000 of assessed value and the $13.90 hotel-resort category.
City officials expect to issue up to 1,700 new permits for hosted B&B operations starting October 2020 after the Council approved a new vacation rental ordinance in June.