Rental Collection Agreement

Persons authorized under agreements to collect rent on behalf of owners of real property and transient accommodations located within the State are required to make filings with the Department of Taxation (Department) under sections 237-30.5 and 237D-8.5, Hawaii Revised Statutes, respectively. Under Act 76, Session Laws of Hawaii 2024, a failure to comply with these requirements is unlawful and may result in a citation and monetary fine of no more than $500 per violation.

The Department has issued guidance for Rental Collection Agreements in Tax Information Release (“TIR”) 2024-02.

The Department of Taxation issued proposed Temporary Administrative Rules in Tax Information Release (“TIR”) 2024-02

Third party rent collectors are required to file the following documents via Hawaii Tax Online at hitax.hawaii.gov:

1. Form RCA-1, with a copy of the first page of the rent collection agreement;
2. Form RCA-1, with a copy of federal Form 1099; or
3. Form RCA-1, without attachments.

An exemption to the electronic filing requirement may be granted for good cause. To apply for a waiver, complete Form L-110.

Form RCA-1 must be filed electronically via the following methods:

1. Manual Entry on Hawaii Tax Online
   • Submitter types-in each property owner’s information into Hawaii Tax Online
   • If submitting information for 10+ properties, suggest use Simple File Import method below.
   • Step by step filing instructions: Hawaii Tax Online – Manual Entry
2. Simple File Import (SFI) on Hawaii Tax Online
   • Use the RCA-1 Worksheet to compile data and upload to HTO
   • Maximum of 1,000 property owner records per submission –
     1. If managing more than 1,000 properties, If managing more than 1,000 properties, submit another RCA-1 Worksheet
     2. More than 1 submission is allowed per day
   • Step by step filing instructions: Hawaii Tax Online – Simple File Import
   • For more information, see Publication EF-17.

1. If you are submitting a copy of the first page of the rent collection agreement with Form RCA-1, you must file within 30 days from the date you enter into the rent collection agreement;
2. If you are submitting a copy of Form 1099 with Form RCA-1, you must file on or before:
   1. February 28 following the close of the calendar year for which Form 1099 is filed with the IRS by paper; or
   2. March 31 following the close of the calendar year for which Form 1099 is e-filed with the IRS; or
3. If you are filing Form RCA-1 without attachments, you must file on or before March 31 of the close of the calendar year in which you entered into the rent collection agreement.

Note: If any due date falls on a Saturday, Sunday, or legal holiday, substitute the next regular workday as the due date.

Failure to Comply with Reporting Requirements – The penalty for failure to comply with the reporting requirements may result in a monetary fine of no more than $500 per violation.

Failure to File Electronically – Failure to electronically file and/or submit the required filings may result in a citation. Use Form L-110 to apply for a waiver.