Maui STR Rules: Bill 9 / Minatoya List and the 2024 Phase-Out

Maui County, Hawaii passed Bill 9 in 2024 to phase out short-term rentals operating in apartment-zoned residential districts. The phase-out affects approximately 7,000 STR units — primarily condo-style properties in West Maui (Ka'anapali, Honokowai), Kihei, and Wailea-Makena that operated under apartment zoning rather than hotel/resort zoning. The Minatoya List — a 2014 county registry of then-existing STRs — provides grandfathering for some pre-2014 operators, but the list is closed to new entries. Hotel-zoned and resort-zoned STRs are not affected by Bill 9 and continue operating normally. The post-2023-fire Lahaina reconstruction continues to reshape inventory and demand patterns across West Maui.

Licensing & Registration

Maui STR Operating Permit: required for properties not on Minatoya grandfathering, $1,500-$2,500/year depending on category. Required: $1M liability insurance, on-site or rapid-response management, life-safety inspection, posting of permit number on listings. Apartment-zoned STRs face the Bill 9 phase-out timeline (gradual through 2025-2027); hotel-zoned and resort-zoned operators face standard permit renewal without phase-out concerns.

Lodging & Occupancy Taxes

Hawaii TAT 10.25% + Maui County TAT 3% = 13.25% TAT on stays under 180 days. Hawaii GET 4.5% + Maui surcharge 0.5% = 4.712% effective GET. Combined effective Maui lodging tax: ~17.96%. Stays of 180+ days are exempt from TAT. Airbnb collects Hawaii state and Maui county taxes automatically.

Penalties & Enforcement

Operating without a valid permit (or operating after Bill 9 phase-out): $20,000+ per violation per day, among the highest fines nationally. Maui's enforcement framework prioritizes Bill 9 compliance — the county has dedicated staff working through the phase-out process for affected apartment-zoned properties. Hotel-zoned operators face standard enforcement (typically registration verification + complaint response).

Recent Changes

Bill 9 implementation through 2024-2027 is reshaping the Maui STR market significantly. Apartment-zoned condo investors face contracting operating windows; many are converting to long-term-rental or selling. Hotel-zoned and resort-zoned operators (Wailea condos, Ka'anapali oceanfront, etc.) face less change but absorb spillover demand. Lahaina reconstruction continues; tourism patterns remain disrupted versus pre-fire baselines.

Tax Strategy for Compliant Investors

Even within Maui's regulatory framework, properly-licensed STR investors retain the federal tax stack. Cost segregation accelerates depreciation, the STR loophole can convert losses to active-income offsets for materially-participating owners, and 100% bonus depreciation under OBBBA applies to all reclassified 5- and 15-year assets. See cost segregation for Airbnb properties for the full playbook.

Frequently asked questions