Overview: Are Short‑Term Rentals Allowed in Kalaheo?

Explicit answer: No. In Kalaheo (Kauai County), any short‑term rental of a room or entire home for less than 180 days is prohibited unless one of two narrow conditions applies:

• The property is located inside a Visitor Destination Area (VDA), where transient vacation rentals (TVRs) are permitted, or
• The property has an approved, current Non‑Conforming Use (NCU/TVR‑NCU) certificate that legally grandfathered the STR use prior to the ordinance deadline.

Outside a VDA, new TVRs cannot be established. If an NCU certificate is on file, it is an annual renewal requirement, and operation without an active, renewed certificate is unlawful.

How to Start an STR Business in This Market

• Step 1 — Eligibility determination:
  • Confirm your property’s zoning and whether it lies inside any VDA on Kauai. If it is outside a VDA, confirm whether it holds an active NCU certificate. The Planning Department maintains a public list of “approved Homestays & Non‑Conforming TVRs by TMK” on its TVR page.
• Step 2 — If inside a VDA or within NCU:
  • Complete and file the correct application and annual renewals. NCUs require yearly renewal; use the current “TVR‑NCU Renewal Application Form” (PDF) from the Planning Department. Homestays follow a separate recertification process with their own application forms.
• Step 3 — Submit renewal or application:
  • Mail the complete packet by certified mail, return receipt requested, at least two months before the renewal date to: Planning Department, 4444 Rice Street, Suite A473, Lihue, Hawaii 96766. Drop‑offs at the front counter are no longer accepted. Keep the USPS green card as proof of mailing date.
• Step 4 — Maintain compliance:
  • Keep an evacuation plan on file and available for inspection. Operate only within the terms of the permit; advertising a property as a TVR creates prima facie evidence of operation and triggers enforcement if not properly permitted.
• Step 5 — Taxes:
  • Collect and remit Hawaii’s Transient Accommodation Tax (TAT) and General Excise Tax (GET) on gross STR revenue. GET is collected at 4.5% statewide; TAT is assessed by the State and remitted to the Hawaii Department of Taxation. Consult your tax advisor for current rates and filing procedures.
• Step 6 — Transactions:
  • If buying a property with an NCU, obtain the complete NCU file, the most recent renewal application and attachments, and the Planning Department’s latest renewal letter from the seller to understand ongoing obligations. If purchasing mid‑year, submit updated renewal information to the Planning Department within 30 days of recordation.

Required Documents, Permits, Licenses, and Guidelines

• NCU/TVR renewal documents:
  • Current year TVR‑NCU Renewal Application Form (PDF), properly completed
  • Evacuation plan (sample template is provided by the Planning Department)
  • Any other attachments required by the current renewal checklist
  • Non‑conforming agricultural lands: special rules apply; see regulations section below
• Homestay requirements:
  • Annual recertification using the current “Homestay Recertification Application Form (PDF)”
• Fees:
  • Annual NCU renewal fee is $150 (per Ordinance 950)
• Compliance documentation:
  • Keep all inspection records, correspondence, and proof of mailing for renewals
  • Do not attempt counter drop‑offs for renewals; use certified mail

Specific Regulations (County, State)

• County (Kauai):
  • Ordinance 904 (TVR) and Ordinance 950 (Fees) govern TVRs and NCUs. TVR is defined as any dwelling unit provided to transient occupants for 180 days or less. Outside VDAs, short‑term rentals under 180 days are prohibited unless a valid NCU certificate exists.
  • New TVRs outside VDAs have been closed since the ordinance’s adoption and cannot be re‑opened; only previously legal operations with NCUs may continue, subject to annual renewal.
  • Non‑conforming use certificates are non‑transferable beyond the property and require yearly renewal. Late renewals are not accepted; a cease and desist and notice of forfeiture will be issued for failure to renew.
  • Advertising a property as a TVR is prima facie evidence of operation and will trigger enforcement if not permitted.
  • Special restrictions for agricultural lands (see below).
• Agricultural land special rules:
  • For lands designated Agricultural by State law, an NCU cannot be issued unless: (1) the structure was built prior to June 4, 1976, or (2) the applicant held a State special permit under HRS Section 205.6 specifically permitting a vacation rental before the ordinance’s enactment. This rule blocks most TVR NCUs on agricultural land.
• State (Hawaii):
  • General Excise Tax (GET): 4.5% on gross income from STR operations (collected by the State).
  • Transient Accommodation Tax (TAT): imposed on gross income derived from STRs; remitted to the Hawaii Department of Taxation. Rates and any county surcharge components are set by State statute—consult the Department of Taxation or your tax advisor for current rates and filing obligations.

Contact Information (Local Authority in Charge of STRs)

• County of Kauai Planning Department — Transient Vacation Rentals
  • Mailing address:
    • Planning Department
      • 4444 Rice Street, Suite A473
      • Lihue, Hawaii 96766
  • Phone: (808) 241‑4050
  • Website (STR page): see “Links to Source Pages” below
  • For enforcement inquiries: contact the Planning Department and ask to speak to an inspector; provide the property owner’s name, TMK, address, and any advertising evidence.

Links to Source Pages

• County of Kauai Planning — Transient Vacation Rentals page:
  • www.kauai.gov/Government/Departments-Agencies/Planning/Transient-Vacation-Rentals
• List of Approved Homestays & Non‑Conforming TVRs by TMK:
  • www.kauai.gov/files/assets/public/v/98/planning-department/documents/tvr/dto_r1_updated.pdf
• Sample TVR Evacuation Plan:
  • www.kauai.gov/files/assets/public/v/1/planning-department/documents/sample-tvr-evacuation-plan.pdf
• 2025 TVR‑NCU Renewal Application Form:
  • www.kauai.gov/files/assets/public/v/1/planning-department/documents/tvr/2025renewalapplicationtvr-fillable.pdf
• 2025 Homestay Recertification Application Form:
  • www.kauai.gov/files/assets/public/v/1/planning-department/documents/tvr/2025_homestay_recertification_application-fillable.pdf
• 2026 TVR‑NCU Renewal Application Form:
  • www.kauai.gov/files/assets/public/v/1/planning-department/documents/tvr/2026renewalapplicationtvrfillable.pdf
• 2026 Homestay Recertification Application Form:
  • www.kauai.gov/files/assets/public/v/1/planning-department/documents/tvr/2026_homestay_recertification_applicationfillable.pdf

Additional Guidance for Investors

• Verification: If a property is advertised as a TVR but does not appear on the Planning Department’s approved list, it is likely subject to a Cease & Desist, an Order to Show Cause, or a pending appeal and should not be operating.
• No grace period: Renewals must be timely; late submissions cannot be cured under current ordinances.
• Transaction diligence: Confirm the NCU’s status, renewal history, and compliance before purchase. Require the seller to provide the complete NCU file and the latest renewal letter to avoid post‑closing liabilities.