Overview: Are Short-Term Rentals Allowed in Captain Cook, HI?

Yes, short-term rentals are allowed in Captain Cook, Hawaii, but they are subject to strict county-level regulations under Hawaii County Ordinance 2018-114. Captain Cook is an unincorporated community within Hawaii County (Big Island), and therefore operates under county short-term vacation rental (STVR) regulations rather than city-specific ordinances.

Critical Regulatory Framework: Hawaii County has implemented comprehensive STVR regulations that restrict short-term rentals to specific zoning districts (hotel, resort, and commercial zones) while prohibiting them in most residential and agricultural zones. However, there are important exceptions for owner-occupied properties on agricultural land, particularly relevant to Captain Cook's rural character.

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How to Start a Short-Term Rental Business in Captain Cook

1. Property Eligibility Assessment

Verify Zoning Compliance:

• Confirm your property's zoning designation using Hawaii County zone maps
• STVRs are permitted only in hotel, resort, and commercial zoning districts
• Properties in residential and agricultural zones are generally prohibited from operating as STVRs
• Use the county's TMK (Tax Map Key) lookup system to determine zoning classification

Agricultural District Considerations:

• Properties in agricultural districts face additional restrictions under Hawaii state land use law
• Farm dwellings on lots created before June 4, 1976, may be eligible for nonconforming use certificates
• Important Exception: Owner-occupied short-term rentals may be permitted on agricultural land when classified as bed-and-breakfast operations rather than STVRs

2. Application Process

Primary Registration Steps:

• Complete the STVR Registration Application using current county forms (updated March 2022)
• Submit all required documentation and applicable fees
• Designate a "Reachable Person" available 24/7 for operational issues
• Await county review and approval process
• Obtain any additional permits required by the Planning Department

Timeline Expectations:

• Processing times vary depending on application complexity and completeness
• Incomplete applications will experience delays
• The Planning Department processes applications in the order received

3. Operational Compliance Setup

Immediate Requirements:

• Implement noise control measures and quiet hours
• Ensure adequate parking arrangements per county standards
• Meet all applicable safety and building code requirements
• Display STVR permit numbers prominently in all advertising materials
• Establish emergency contact protocols and guest communication procedures

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Required Documents, Permits, Licenses, and Guidelines

Core Application Documents

Primary Forms (Updated March 2022):

• STVR Registration Form - Main application document
• STVR Statement of Compliance - Attests to meeting all operational requirements
• Tax Map Key (TMK) Documentation - Property identification (available through Real Property Tax website)
• Proof of Property Ownership - Current title or deed documentation
• Site Plan - Detailed layout showing parking arrangements and property boundaries
• Neighbor Notification Documentation - Proof of required neighbor notification process

Special Circumstances Documentation

Nonconforming Use Certificate (NUC):

• Available for existing STVRs operating outside permitted zones
• NUC Annual Renewal Required using specific forms
• NUC renewal applications must be submitted annually to maintain compliance
• Properties must continue to meet original NUC approval conditions

Change of Information:

• STVR Change of Information Application Form - Required when ownership changes
• STVR Change of Information Statement of Compliance - Required for operational modifications
• NUC Annual Renewal Statement of Compliance - Annual requirement for existing NUC holders

State-Level Business Requirements

Hawaii State Tax Registration:

• General Excise Tax (GET) registration required
• Transient Accommodations Tax (TAT) registration required
• Registration fees: GET ($20), TAT ($5 for 1-5 units, $15 for 6+ units)
• Separate Hawaii Tax Identification Numbers assigned for GET and TAT
• No minimum tax liability threshold for registration requirements

Tax Compliance Documentation

Required Forms and Filing:

• GET Forms: G-45 (periodic), G-49 (annual)
• TAT Forms: TA-1 (periodic), TA-2 (annual)
• Schedule GE - Required for claiming exemptions
• Form G-75 - Required if rental properties span multiple islands
• Form BB-1 - Initial business registration application

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Specific Regulations for Short-Term Rentals

Hawaii County Regulations (Ordinance 2018-114)

Fundamental Definitions:

• STVRs defined as dwelling units with no more than 5 bedrooms
• Rental periods of 30 consecutive days or less
• Owner does not live on-site during rental periods
• Maximum occupancy limits based on bedroom count and local fire safety requirements

Zoning Restrictions:

• STVRs only permitted in: Hotel, resort, and commercial zoning districts
• Prohibited in: Residential and agricultural zoning districts (with limited exceptions)
• Limited agricultural exceptions exist for owner-occupied operations classified as bed-and-breakfast establishments

Operational Standards:

• 24/7 Reachable Person requirement - Designated individual available for immediate response to complaints or emergencies
• Noise control measures - Reasonable quiet hours and sound level restrictions
• Parking requirements - Adequate off-street parking must be provided
• Advertising compliance - Permit numbers must be displayed in all marketing materials
• Safety compliance - All properties must meet applicable building and fire codes

Planning Department Rule 23

Implementation Procedures:

• Established detailed processing procedures for STVR applications
• Created regulatory framework for ongoing operational oversight
• Implemented community impact management protocols
• Defined enforcement procedures and penalty structures

Key Provisions:

• Application processing standards and timelines
• Operational compliance monitoring requirements
• Community complaint handling procedures
• Violation notification and remediation processes

Owner-Occupied Agricultural Exception

Recent Legal Developments:

• Hawaii County Board of Appeals ruling (December 2022) confirmed owner-occupied short-term rentals allowed on agricultural land
• Properties must maintain genuine agricultural use requirements
• Operations classified as bed-and-breakfast establishments rather than STVRs
• Owners must reside on the property during guest stays
• Agricultural production must be actively maintained

Legal Precedent:

• Board of Appeals decision in "Kohania Villas" case established favorable precedent
• County maintains position that no provision limits landowner from renting portions of residence within agricultural districts
• Court decisions have challenged county restrictions, though appeals are ongoing

State-Level Tax Regulations

General Excise Tax (GET):

• Rate: 4% plus 0.5% county surcharge
• Subleasing exception: Up to 87.5% deduction available (equivalent to 0.5% rate)
• Pass-through allowed: Tax can be visibly passed to guests
• Reporting: Monthly, quarterly, or semiannual periodic returns plus annual return

Transient Accommodations Tax (TAT):

• Rate: 10.25% on gross rental proceeds
• County TAT: Additional county-specific transient accommodations taxes apply
• Registration required: Separate identification numbers for GET and TAT
• Marketplace collection: Vacation rental platforms cannot collect Hawaii taxes on behalf of hosts

Filing Requirements:

• Periodic returns: Due 20th day of month following filing period
• Annual returns: Due 20th day of fourth month following tax year
• Electronic filing required: For taxpayers with annual GET/TAT liability exceeding $4,000
• Penalties: 2% penalty for required electronic filers who file paper returns

Special Management Area (SMA) Considerations

Coastal Properties:

• Properties within designated SMA zones require additional permitting
• SMA permits required for development activities in coastal areas
• Additional environmental compliance requirements may apply
• Consultation with Planning Department required to determine SMA status

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Contact Information for Local Authority

Hawaii County Planning Department

Primary Administrative Authority for STVRs

West Hawaii (Kona) Office:

• Address: West Hawaii Civic Center, 74-5044 Ane Keohokalole Highway, Building E, 2nd Floor, Kailua-Kona, HI 96740
• Phone: (808) 323-4770
• Fax: (808) 327-3563
• Service Area: Captain Cook and other West Hawaii locations

East Hawaii (Hilo) Office:

• Address: Aupuni Center, 101 Pauahi Street, Suite 3, Hilo, HI 96720
• Phone: (808) 961-8288
• Fax: (808) 961-8742
• Service Area: East Hawaii locations

General Information:

• Email: planning@hawaiicounty.gov
• Hours: 7:45 AM - 4:30 PM, Monday-Friday
• Website: www.planning.hawaiicounty.gov
• STVR Section: Dedicated resources available under "Short-Term Vacation Rentals" section

Hawaii Department of Taxation

Tax Registration and Compliance

Hawaii District Office (Hilo):

• Address: State Office Building, 75 Aupuni Street, #101, Hilo, HI 96720-4245
• Phone: (808) 974-6321
• Fax: (808) 974-6300

Captain Cook Satellite Office:

• Address: State Office Building, 82-6130 Mamalahoa Highway, #8, Captain Cook, HI 96704
• Phone: (808) 323-4597
• Fax: (808) 323-4599
• Note: Limited hours and services; main district office preferred for complex matters

General Tax Information:

• Website: tax.hawaii.gov
• Special Enforcement Section: (808) 587-1456
• Email: Tax.Special.Enforcement.Section@hawaii.gov
• Online Registration: hitax.hawaii.gov

Additional Contacts

County Tax Collection (Real Property Tax):

• Website: Available through Hawaii County Real Property Tax division
• TMK Lookup: qpublic.schneidercorp.com for property identification
• Tax Status Verification: Required for STVR applications

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Source Links

Primary Regulatory Documents

• Hawaii County Planning Department - Short-Term Vacation Rentals - Primary resource center for all STVR information
• STVR Registration Form - Main application document (Updated March 2022)
• STVR Statement of Compliance - Required compliance attestation
• Ordinance 2018-114 (Bill 108) - Full text of STVR legislation

Planning Department Rules and Procedures

• Planning Department Rule 23 - Implementation procedures for STVR regulation
• Complete Planning Department Rules - Comprehensive procedural requirements

Special Circumstances Forms

• NUC Renewal Application - For existing nonconforming use certificates
• NUC Renewal Statement - Annual compliance requirement
• Change of Information Application - For ownership or operational changes
• Change of Information Statement - Compliance attestation for changes

Property and Zoning Information

• Real Property Tax Website - TMK number lookup and property information
• Hawaii County Zone Maps - Zoning classification reference
• SMA Information - Coastal zone requirements

State Tax Resources

• Hawaii Department of Taxation - General Information - Tax registration and compliance guidance
• Business Registration Forms - Online registration portal
• Rental Property Tax Guide - Comprehensive tax compliance document (Revised May 2025)

Legal Precedents and Interpretations

• Avalara Analysis - Owner-Occupied Agricultural Exception - Recent Board of Appeals decision analysis
• County STVR Regulations Summary - Market analysis and regulatory overview

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Important Regulatory Note: Hawaii County has been actively updating STVR procedures and forms, with the most recent comprehensive updates occurring in March 2022. Given the ongoing legal challenges and evolving interpretations, investors should verify current requirements with the Hawaii County Planning Department before proceeding with any STVR application or operation. The county continues to refine its regulatory approach based on community input and legal precedents.