Hawaii · Lihue
Lihue
Lihue (Līhuʻe) is an unincorporated Census Designated Place in Kauaʻi County with NO municipal government and NO city-level STR ordinance of its own — Hawaii has no incorporated cities other than Honolulu, so 100% of STR regulation applicable in Lihue is County of Kauaʻi law: Kauaʻi County Code 1987 Chapter 8 (Comprehensive Zoning Ordinance) Article 17 "Time Sharing and Transient Vacation Rentals" (as amended and republished by Ord. No. 935; substantively established by Ord. No. 864 (2008) and amended by Ord. No. 904) and Article 18 "Homestays" (Ord. No. 1002, adopted 06/03/2016). The governing rule is geographic: CZO Sec. 8-17.1 declares transient vacation rentals (TVRs) prohibited except as provided, and Sec. 8-17.8(a) prohibits single-family TVRs "in all areas not designated as Visitor Destination Areas." Lihue is significant because it is one of only FOUR designated Visitor Destination Areas (VDAs) on Kauaʻi — Sec. 8-17.2(b) names "Po'ipu, Lihu'e, Wailua-Kapa'a or Princeville" as the VDAs, mapped originally to Ordinance No. 436 and carried onto the official County zoning maps (the Lihue VDA is the Kalapakī Bay / resort-hotel area, not the general Lihue residential town). Consequences: (1) INSIDE the Lihue VDA — a TVR is a permitted use and requires registration with the Director of Finance before any use (Sec. 8-17.9(a)), plus development standards under Sec. 8-17.8(b) (24/7 on-island contact, 1 sq ft posted sign showing the registration number and 24/7 phone, registration number in ALL print/internet advertising, "For the Safety and Comfort of You and Your Neighbors" notice, site/floor plan). (2) OUTSIDE the Lihue VDA (i.e., ordinary Lihue residential neighborhoods) — a single-family TVR is flatly prohibited unless it holds a grandfathered Nonconforming Use Certificate (NCU), available ONLY to rentals lawfully operating prior to March 7, 2008 (Sec. 8-17.10(b)); that window is permanently CLOSED — Sec. 8-17.10(g) provides applications received more than one year after August 16, 2010 "shall not be accepted and the use of a transient vacation rental shall be deemed discontinued." NCUs must be renewed ANNUALLY on the certificate's issuance date, currently a $750 non-refundable fee (2026 renewal form dated 09/03/2025; raised from $500 by Council bill amending Sec. 8-17.10(h)(3) — note the fee codified in the Ord. 935 text is a stale $150). (3) HOMESTAYS (owner-occupied B&B, ≤3 guest rooms, stays of 29 days or less, Class IV Zoning Permit, annual recertification) are ALSO VDA-only — Ord. 1002 Sec. 8-18.1: "Homestay operations are prohibited outside of the Visitor Destination Area (VDA)" — and require the owner to reside on-site and hold the Sec. 5A-11 homeowner's exemption. (4) Historic exemption: dwellings on the National or State Register of Historic Places may operate as a TVR via use permit (Sec. 8-17.12). Penalties (Sec. 8-17.6): $500–$10,000 per offense, plus a new separate violation for EACH DAY the violation continues after one month; advertising alone is prima facie evidence of operation (Sec. 8-17.11(b)). Taxes stack: Hawaii State TAT 11.00% effective January 1, 2026 (raised from 10.25% by Act 96, SLH 2025), Kauaʻi County TAT 3% effective October 1, 2021 (Bill 2829, KCC Chapter 5 Article 4, signed 09/16/2021), plus GET 4% + 0.5% county surcharge. Notably, the County's March 4, 2026 registry of approved homestays and nonconforming TVRs lists ~425 active permits countywide with ZERO in Lihue/Kalapakī/Nāwiliwili/Hanamāʻulu — grandfathered NCUs cluster in Hanalei, Wainiha, Kekaha, Anahola and Kapaʻa — consistent with Lihue's legal STR activity running through VDA registration rather than nonconforming grandfathering. Parcel-level VDA status must be confirmed against the official County zoning map.
Not legal advice. Last verified 2026-07-15 · sources linked below.
Requirements checklist
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county TVR Registration with Director of Finance (inside Visitor Destination Area) Conditional
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county Nonconforming Use Certificate (NCU / TVNC) for Single-Family Vacation Rentals (outside VDA) Conditional
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county NCU grandfathering cutoff — pre-March 7, 2008 use; application window closed Required
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county Homestay Class IV Zoning Permit (Ord. 1002, Article 18) Conditional
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county 24-hour / 7-day contact person or owner's representative Required
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county Permit number in all advertising Required
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county Posted outdoor sign (max 1 sq ft) with permit number and 24/7 phone Required
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county "For the Safety and Comfort of You and Your Neighbors" guest information notice Required
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county Fire extinguisher, evacuation plan, and tsunami-zone disclosure Required
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state Hawaii General Excise Tax (GET) license and Transient Accommodations Tax (TAT) license Required
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county Use permit for historic-register properties Conditional
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state State Land Use Commission special permit (agricultural-district TVRs) Conditional
Taxes
| Tax | Rate | Administered by | Airbnb remits | Vrbo remits |
|---|---|---|---|---|
| Hawaii State Transient Accommodations Tax (TAT) | 11% | State of Hawaii Department of Taxation (DOTAX) | — | — |
| Kauaʻi County Transient Accommodations Tax (KTAT) | 3% | County of Kauaʻi Department of Finance (Director of Finance) — NOT the State DOTAX | — | — |
| Hawaii General Excise Tax (GET) + Kauaʻi County Surcharge | 4.5% | State of Hawaii Department of Taxation (DOTAX) | — | — |
Lodging-tax estimator
Estimate the combined transient/lodging tax (~18.5%) on a stay in Lihue. Estimate only — not tax advice.
Operating rules
- Primary residence
- No
- Min stay (nights)
- —
- Max nights / year
- —
- Max occupancy
- No occupancy cap for VDA TVRs or NCU TVRs in the CZO. Homestays are capped at 3 guest rooms and require 1 additional paved off-street parking stall per bedroom used for homestay purposes.
- Zoning-restricted
- Yes
- Cap on licenses
- No fixed numeric cap on VDA TVR registrations. However the NCU pool outside VDAs is permanently closed and finite — no new NCUs may issue (Sec. 8-17.10(g): applications more than one year after August 16, 2010 'shall not be accepted'). A prior homestay cap of 10 new applications per calendar year for 2015 and 2016 expired December 31, 2016 (bracketed/repealed by Ord. 1002). The County's March 4, 2026 registry lists ~425 active approved homestays and nonconforming TVRs countywide, none in Lihue.
Grandfathering: Yes — Nonconforming Use Certificates preserve single-family TVRs outside VDAs that operated lawfully prior to March 7, 2008 (Sec. 8-17.10(b)). Burden of proof is on the owner via GET/TAT filings, income tax returns, reservation lists and receipts (Sec. 8-17.10(e)). NCUs survive only through unbroken annual renewal; the Planning Department may re-inspect and withhold renewal until violations are resolved. Ord. 904 preserved previously issued NCUs but kept holders subject to the renewal process. Separately, time shares/multi-family TVRs existing on or before September 22, 1982 outside VDAs may continue as allowed uses but may be lost by abandonment exceeding two years.
Zoning: Geography is the controlling restriction. Sec. 8-17.1: TVRs prohibited except as provided. Sec. 8-17.8(a): single-family TVRs prohibited in ALL areas not designated Visitor Destination Areas. Lihue is one of four named VDAs (Sec. 8-17.2(b): Po'ipu, Lihu'e, Wailua-Kapa'a, Princeville), mapped to Ordinance No. 436 and transferred onto the official County zoning maps — in practice the Kalapakī Bay resort area, NOT general Lihue residential town. VDA boundaries are defined by the County zoning maps ('Visitor Destination Area or VDA' are those areas designated as Visitor Destination Areas on County of Kaua'i zoning maps), so parcel-level VDA status must be confirmed on the official zoning map / with the Planning Department (808-241-4050). Multi-family TVRs allowed in Hotels in Resort or Commercial Districts and in Resort/Residential Districts within VDAs (Sec. 8-17.3). Time share prohibited in R-1, R-2, R-4 and R-6 Residential Districts (Sec. 8-17.2(c)). Homestays permitted only in the VDA (Ord. 1002). Amendments to VDA boundaries proceed under Sec. 8-3.4 with the burden of proof on the applicant.
- Lihue/Līhuʻe is an unincorporated Census Designated Place, NOT an incorporated city. Hawaii has no incorporated municipalities other than the consolidated City & County of Honolulu. Lihue therefore has zero independent STR ordinance-making power; every requirement here is County of Kauaʻi (or State of Hawaii) law. Lihue is the county seat — the Planning Department sits at 4444 Rice Street, Suite A473, Lihuʻe, HI 96766.
- A 'transient vacation rental' on Kauaʻi is defined by duration of occupancy of 180 days or less (Ord. 904); a 'transient' for State TAT purposes is a guest renting for less than 180 consecutive days. Homestays are separately limited to stays of 29 days or less.
- There is no minimum-night stay and no annual night cap for a legally permitted TVR — the regulation is binary and locational (VDA vs. non-VDA), not volumetric.
- Primary residence is NOT required for a VDA TVR or an NCU TVR, but IS required for a homestay: the owner must reside at the homestay site, be physically within the County of Kauaʻi and available to guests, must hold the Sec. 5A-11 homeowner's exemption, and no designated representative may substitute for the owner.
- Interior lockouts were prohibited under Ord. 904's version of Sec. 8-17.8(b)(6); the republished Ord. 935 text of that subsection reads only 'A site and floor plan shall be filed with the application.' Treat the lockout prohibition as uncertain.
- The renewal fee codified in the Ord. 935 text ($150) is superseded — the operative fee is $750/year per the County's official 2026 renewal form and the Council bill amending Sec. 8-17.10(h)(3) from $500 to $750. Kauaʻi's TVR renewal is widely reported to have no grace period; that strictness claim is NOT quote-anchored to a primary source and is excluded from the record.
- Kauaʻi's ~425 active NCU/homestay permits concentrate in Hanalei, Wainiha, Kekaha, Anahola and Kapaʻa. The March 2026 registry contains no Lihue, Kalapakī, Nāwiliwili or Hanamāʻulu entries — legal STR supply in Lihue runs through VDA registration (Kalapakī resort area) rather than grandfathered nonconforming use.
Enforcement
- Active enforcement
- yes
- Fines
- CZO Sec. 8-17.6: not less than $500 nor more than $10,000 per offense as a civil fine, which may be in addition to any criminal fines. If a person fails to cease the violation within one month, each day the violation continues is a NEW AND SEPARATE violation — i.e., up to $10,000/day exposure after the one-month cure period. The County Attorney may file a civil action to enjoin violations and collect penalties; all fines are paid to the Director of Finance and credited to the Development Fund. Separately, the Planning Director (or a member of the public with standing) may initiate proceedings to revoke or modify an NCU under the Planning Commission's Rules of Practice and Procedure; violating conditions of approval or providing false or misleading information on the application is grounds for revocation or cease-and-desist orders. A $1,500 administrative late application processing fee applied to late NCU filings. Kauaʻi's official 2026 forms warn the County 'can pursue civil and/or criminal penalties for any unlawful short-term rentals.'
- Notes
- Enforcement posture is active and evidentiary-friendly to the County: under Sec. 8-17.11(b) ADVERTISING ALONE is prima facie evidence of TVR operation and shifts the burden of proof onto the owner/operator/lessee to prove the property is not a TVR or is legally used as one — this is why Sec. 8-17.8(b)(4) forces the permit number into every listing (a listing without a valid TVNC number is effectively self-incriminating). The Planning Department may physically inspect a TVR before an NCU issues and may re-inspect at renewal, withholding approval and issuing cease-and-desist notices until violations are resolved. Renewal is hard-gated on currently valid State GET and TAT licenses — failure is automatic denial — which links tax compliance directly to land-use survival. The Planning Director must publish, at the counter and on the County website, a public list of all completed NCU applications including applicant names and TMKs (subject to HRS Ch. 92F, the Uniform Information Practices Act). Ongoing administration is demonstrable: the County maintains and updates a public 'List of Approved Homestays & Non-Conforming TVR's by TMK' (10-page PDF regenerated March 4, 2026, ~425 rows marked Active with per-permit renewal dates and tsunami-zone flags), and it publishes dated annual renewal/recertification forms (the 2026 TVR renewal form is revision-dated 09/03/2025). The Planning Department solicits public complaints about unpermitted STRs and directs complainants to provide owner name, TMK, street address, website ad copies and a description of activity.
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Frequently asked questions
Is Airbnb legal in Lihue?
Do I need a license or registration for a short-term rental in Lihue?
What taxes apply to short-term rentals in Lihue?
Official sources
- ordinance Ordinance No. 935 — Updated Comprehensive Zoning Ordinance, Kauaʻi County Code 1987 Chapter 8 (Article 17: Time Sharing and Transient Vacation Rentals, Secs. 8-17.1–8-17.12; VDA definition) ↗
- ordinance Ordinance No. 1002 (Bill No. 2619 Draft 2) — Amending Chapter 8, Kauaʻi County Code 1987, Relating to Homestays (Article 18, adopted 06/03/2016) ↗
- ordinance Ordinance No. 904 (Bill No. 2364 Draft 2) — Amending Chapter 8, Kauaʻi County Code 1987, Relating to the Comprehensive Zoning Ordinance (TVR grandfathering; amends Ords. 864 and 876) ↗
- form County of Kauaʻi Planning Department — 2026 Transient Vacation Rental Outside of the VDA Renewal Application Form (rev. 09/03/2025; $750 fee) ↗
- form County of Kauaʻi Planning Department — 2026 Class IV Zoning Permit Homestay Recertification Application Form ↗
- registry County of Kauaʻi Planning Department — List of Approved Homestays & Non-Conforming TVR's by TMK (generated 2026-03-04; ~425 active permits) ↗
- agency_page County of Kauaʻi Planning Department — Transient Vacation Rentals (program page; TVR ordinances, rules, forms, FAQs, complaint process) ↗
- agency_page County of Kauaʻi Department of Finance — Transient Accommodations Tax (KTAT 3%, Bill 2829, KCC Ch. 5 Art. 4, FAQs and forms) ↗
- portal Kauaʻi County Transient Accommodations Tax Payments — official County TAT payment portal ↗
- tax_authority State of Hawaii Department of Taxation Announcement No. 2025-03 (June 9, 2025) — Transient Accommodations Tax Law Changes from 2025 Legislative Session (Act 96: TAT 10.25% → 11.00% effective 1/1/2026) ↗
- tax_authority State of Hawaii Department of Taxation Tax Facts 96-2 — Transient Accommodations Tax (revised May 2025; GET 4% + 0.5% county surcharge; transient = under 180 consecutive days) ↗
- bill Kauaʻi County Council Bill — Amending Article 17, Chapter 8, KCC 1987, Relating to Nonconforming Use Certificates for Single Family Vacation Rentals (Sec. 8-17.10(h)(3) renewal fee $500 → $750) ↗
- census U.S. Census Bureau Geocoder — Lihue, HI (county GEOID 15007 Kauai County; place GEOID 1545200 Lihue CDP) ↗
- census U.S. Census Bureau QuickFacts — Lihue CDP, Hawaii ↗
- agency_page County of Kauaʻi Planning Department — Zoning Maps (authoritative source of VDA boundaries per the CZO definition of 'Visitor Destination Area') ↗
Informational summary of publicly available sources; not legal advice. Verify against the linked official sources.