Transient Vacation Rental Rules

At a glance

What: Three bills on transient vacation rentals (TVRs): Bill 147 (Draft 3) sets operational standards, procedures and zoning use rules for hosted and un-hosted TVRs; Bill 197 would create a temporary real property tax amnesty for certain hosted TVRs; Bill 208 clarifies that a bona fide, reciprocal non-commercial exchange of principal homes is not a TVR.
Where it stands: Bill 147 (Draft 3) and Bill 197 are listed for second or final reading on the 2026-11-06 Council agenda (first reading was 2026-10-21). Bill 208 was forwarded to Council with a favorable recommendation, 7-0, by the Policy Committee on Planning, Land Use and Economic Development on 2026-11-05. No votes on Bills 147 and 197 are reported.
Next: Watch the Council readings of Bills 147 and 197 and Council action on Bill 208.

Bill 147 (Draft 3), sponsored by Council Member Heather L. Kimball: allows hosted TVRs as a permitted use in a list of residential, commercial, resort-hotel and Downtown Hilo districts and in certain agricultural districts under conditions; allows un-hosted TVRs in resort-hotel, general commercial, village commercial and Downtown Hilo commercial districts, and in certain areas of neighborhood commercial or residential districts under conditions.
Bill 197, sponsored by Council Member Heather L. Kimball: tax amnesty for properties with existing vacation rentals that violate homeowner-class restrictions; requires ceasing the rental or properly registering it, without rollback taxes, penalties or interest.
Bill 208, sponsored by Council Member James E. Hustace: amends Section 6-47 of the County Code.
Bill 208 clarifies that a bona fide reciprocal non-commercial exchange of principal homes is not a vacation rental; exchanges involving payment, points or credits would likely need a registration, per the Planning Director.
Bill 147 also appears in the testimony folder for the earlier meeting noted on October 21 Council Bills Under Testimony.

2026-11-06 - 2026-11-06 - County Council: Rule 23 suspension to finish Bill 147 failed 3 to 5 and the bill was held over to November 18; Communication 806.24 adopted (8 ayes); Bill 197 amnesty extension passed final reading; Bill 199 final approval voided.

Bill 147 was the only item. After presentations from the Planning Director and Heather L. Kimball and extensive public testimony, the committee postponed it to September 15 (reported as nine ayes, none opposed). Amendments discussed covered clerical changes, midterm rentals and multifamily and neighborhood commercial zoning eligibility.

Bills 147 (Draft 3) and 197 on the agenda for second or final reading; first reading was October 21, 2026.

Bill 208: two Waimea residents testified in favor; James E. Hustace moved and Dennis Onishi seconded a favorable recommendation. The Planning Director supported the language with minor tweaks; Heather L. Kimball supported it. Passed 7-0 with Holeka Goro Inaba and Rebecca Villegas excused.

Bill 147 (Draft 2) listed for first reading, with Comm. 806.9 (a document from Council Member Kimball titled "B&B Hosting Scenarios in SLU Agricultural District"); the committee recommendation shown is negative (PCPLUED-15, 4 ayes, 5 noes), not a Council vote. Bill 197 (Comm. 1082) also listed for first reading with a negative Finance Committee recommendation (FC-190, 4 ayes, 3 noes, 2 absent).

Bill 197 (Comm. 1082, tax amnesty for certain hosted rentals) listed on the Finance Committee agenda. Agenda read from a scanned document; no outcome is recorded.

Bill 147 (Comm. 806) listed on the Planning, Land Use, and Economic Development committee agenda with Comm. 806.7 and 806.9; postponed September 1 and 15, with a pending motion to recommend passage on first reading. Agenda read from a scanned document; no outcome is recorded.

Bill 173 (Draft 2) listed for first reading: it would create a bed and breakfast home real property tax class and a temporary tax amnesty for existing vacation rentals that violate homeowner-class restrictions (Comm. 960.3, with 960.5 and 960.6 from Council Member Heather L. Kimball); the agenda cites committee report FC-167.
Bill 175 (Draft 2) listed for second or final reading (first reading August 5, 2026): it would move certain vacation rental responsibilities under Ordinance No. 25-50 from the finance director to the planning director, exempt prospective rentals with a valid use or special permit application, and route collected funds to the short-term vacation rental enforcement fund (Comm. 964.2).

Bill 147 listed on the committee agenda (postponed September 1, 2026) with a pending motion by Heather L. Kimball, seconded by Jennifer Kagiwada, to recommend passage on first reading. Related communications: Comm. 806.4 (PowerPoint), 806.5 to 806.8 (proposed amendments) and 806.9 (a document titled "B&B Hosting Scenarios in SLU Agricultural District"). Agenda read from a scanned document; no outcome is recorded.
Bill 173 (bed-and-breakfast home tax class with amnesty) failed at first reading, 3 to 6. Bill 175 (vacation rental ordinance changes) passed final reading 9 to 0.