Overview and Explicit Answer

Short‑term rentals are allowed in Kailua‑Kona, HI. On the Island of Hawai‘i, the County of Hawai‘i regulates short‑term vacation rentals (STVRs) under Ordinance 2018‑114 (Bill 108) and Planning Department Rule 23. STVRs are permitted only in specific zoning districts and under defined standards. Outside those districts, properties that operated legally before April 1, 2019 may continue under a Nonconforming Use Certificate (NUC), which must be renewed annually. Because Kailua‑Kona has no separate city‑level STR code, this guide covers County of Hawai‘i rules (which govern Kailua‑Kona) and applicable State of Hawai‘i tax requirements.

What investors must accept as a reality of this market:

• Zoning controls where you can legally operate; “vacation nodes” along the Kona coast are focal areas, and even within those zones, many condo complexes prohibit short‑term rentals via CC&Rs.
• Eligibility is not automatic; you must confirm your property’s zoning with the County and review private covenants.
• Registration is required, and non‑conforming operators need a valid NUC renewal each year.

How to Start a Short‑Term Rental Business in Kailua‑Kona

1. Confirm eligibility

• Verify zoning: permitted zoning districts include V (Village), CG (General Commercial), and CV (Visitor Commercial); and residential/commercial zoning within General Plan Resort and Resort Node areas; plus RM (multi‑family) where a condominium property regime exists.
• Review CC&Rs: many condos and planned communities restrict rentals under 30 days; confirm before buying.
• Nonconforming Use Certificate (NUC): if the property operated an STVR outside permitted zones before April 1, 2019, you may continue only with a valid NUC, renewed annually.

2. Obtain State of Hawai‘i tax licenses

• Transient Accommodations Tax (TAT) license (statewide definition: rentals for fewer than 180 consecutive days).
• General Excise Tax (GET) license. These licenses are required before filing the County STVR application.

3. Prepare and file County STVR application

• Use the County’s Short‑Term Vacation Rental Application Packet and Statement of Compliance.
• Submit required documents (see the Permits, Licenses, and Guidelines section below).
• Pay the processing fee ($500 as stated on the County application page).

4. Prepare operations for occupancy and safety

• Ensure final approvals from the Building Division are available for the application.
• Maintain safety equipment and signage per County standards, and keep required plans (site and floor) on site for inspections.

5. Renewal and maintenance

• Registrations are not transferable. Changes in owner, reachable person, or property modifications require a new application and a Change of Information filing.
• NUC holders must renew annually; use the NUC Renewal Application and Statement of Compliance.

Required Documents, Permits, Licenses, and Guidelines

State‑level (Hawai‘i Department of Taxation)

• TAT license (Transient Accommodations Tax).
• GET license (General Excise Tax).

County‑level (Hawai‘i County Planning Department)

• STVR Registration Form and Statement of Compliance.
• Final approvals from the Building Division.
• Owner Authorization (if the applicant is not the owner).
• Reachable Person information (24/7 contact).
• Site Plan including: property boundaries, dimensions, setbacks, easements; location of structures, driveway access, pools, ancillary structures, eaves/overhangs; designated parking; reference points (roadways, shoreline, etc.); and a table listing total square footage of each structure.
• Floor Plan identifying room locations and uses.
• Statement of Compliance.
• Processing fee ($500).

If outside permitted zoning (NUC path)

• NUC Renewal Application and Statement of Compliance (annual).
• Evidence of pre‑April 1, 2019 operation.

Change of information or property modifications

• STVR Change of Information Application and Statement of Compliance (for owner/reachable person changes or dwelling modifications).

Optional but highly recommended for condos

• Condo CC&Rs and HOA rules confirming short‑term rentals are permitted.

Authoritative references for County applications and procedures

• Short‑Term Vacation Rental Application Packet and Statement of Compliance.
• STVR NUC Renewal Application and Statement of Compliance.
• STVR Change of Information Application and Statement of Compliance.
• Planning Department Rule 23 (implementing Bill 108).
• Ordinance 2018‑114 (Bill 108).

Specific Regulations for Short‑Term Rentals (County and State)

County of Hawai‘i (applies to Kailua‑Kona)

• Definition: an STVR is a dwelling unit with no more than five bedrooms, rented for periods of less than 30 consecutive days, where the owner or operator does not reside on the building site.
• Permitted zoning: V, CG, and CV; residential/commercial zoning within General Plan Resort/Resort Node areas; RM for multifamily dwellings with a condominium property regime.
• Nonconforming use (NUC): properties operating an STVR outside permitted zoning districts before April 1, 2019 may continue under an NUC; annual renewal is mandatory.
• Registration and standards: Registrations are not transferable; changes require a new application and a Change of Information filing. The County has adopted Rule 23 to process, regulate, and manage STVR impacts.
• Enforcement: Failure to comply can result in fines and other enforcement actions under the County’s rules and ordinances.

State of Hawai‘i (applies statewide)

• Transient Accommodations Tax (TAT): 10.25% of gross rental income.
• General Excise Tax (GET): 4% state rate; counties may assess a surcharge, which varies.
• STR definition for state tax purposes: accommodations provided for fewer than 180 consecutive days per letting.
• State context: Counties regulate the land‑use aspects of STRs. In 2024, the state empowered counties further to regulate time, place, manner, and duration, and to amortize or phase out transient accommodation uses in residential or agricultural zones. Monitor County updates as new legislation is considered.

Recent County proposals (for awareness; not yet enacted as of the provided sources)

• In early 2024, the County Council reviewed a package (Bills 121, 122, 123) intended to register all transient accommodations, define standards of conduct, set fees, and address neighborhood impacts. The proposals drew strong community feedback and were sent onward for further review. Investors should watch for final adopted language and effective dates.

Contact Information (Local Authority in Charge of STRs)

Hawai‘i County Planning Department (administers STVRs)

West Hawai‘i (Kailua‑Kona) Office

• Address: West Hawai‘i Civic Center, Building E, 2nd Floor, 74‑5044 Ane Keohokalole Highway, Kailua‑Kona, HI 96740
• Phone: 808‑323‑4770
• Fax: 808‑327‑3563
• Hours: 7:45 AM – 4:30 PM, Monday–Friday
• Email: planning@hawaiicounty.gov

East Hawai‘i (Hilo) Office

• Address: Aupuni Center, 101 Pauahi Street, Suite 3, Hilo, HI 96720
• Phone: 808‑961‑8288
• Fax: 808‑961‑8742

Key pages and services

• Short‑Term Vacation Rentals (resources and applications).
• Planning Department Rules of Practice and Procedure.
• Contact the Planning Department for zoning confirmations, application status, and inspection scheduling.

Links to Source Pages (IMPORTANT)

County of Hawai‘i Planning – Short‑Term Vacation Rentals

• See authoritative documents and application forms:
  • Short‑Term Vacation Rental Application Packet and Statement of Compliance.
  • STVR NUC Renewal Application and Statement of Compliance (annual).
  • STVR Change of Information Application and Statement of Compliance.
  • Planning Department Rule 23.
  • Ordinance 2018‑114 (Bill 108).
  • Complete Planning Department Rules of Practice and Procedure.
  • Real Property Tax website (to find TMK/Parcel ID).

State and county tax references (for licensing and taxes)

• Hawai‘i Department of Taxation resources:
  • Transient Accommodations Tax Law (Chapter 237D).
  • TAT rate and General Excise Tax information.

Industry overview and proposed rulemaking context

• SummerOS “Hawaii Short‑Term Rental Laws” overview.
• Big Island Now coverage of proposed 2024 changes and public testimony.

Note on Kailua‑Kona specificity

• Kailua‑Kona does not maintain a separate STR code; County of Hawai‘i rules govern this market. Many Kona‑area condos restrict short‑term rentals through CC&Rs, so investors should verify both zoning and private covenants before purchasing or listing.