FAQs

HARPTA stands for the Hawaii Real Property Tax Act. It's a Hawaii state tax law that requires anyone who is not a Hawaii resident to have 7.25% of the sale price withheld when selling real property in Hawaii. For Aulani Disney Vacation Club memberships, this means 7.25% of the gross sale price is withheld at closing and sent to the Hawaii Department of Taxation.

HARPTA applies to anyone selling Hawaii real property who is NOT a Hawaii resident. This includes US residents from other states (California, Florida, Texas, etc.) as well as non-US residents (Canada, UK, etc.). If you don't live in Hawaii, you're subject to HARPTA withholding when selling your Aulani timeshare.

In most cases, Aulani sellers owe little to no actual Hawaii tax. The 7.25% is withheld on the sale price, but your actual tax is calculated on your gain (sale price minus purchase price minus selling expenses). Since most DVC resales result in a loss or minimal gain, there's often no taxable gain at all. This means most sellers get their entire 7.25% withholding back as a refund.

After your sale closes, complete Form N-288C (Application for Tentative Refund) and mail it to the Hawaii Department of Taxation along with your settlement statements showing your purchase price and sale price. You don't need an ITIN or a complex tax return - just this one simple form. Most sellers receive their refund within 2-3 months.

No! You do NOT need an ITIN (Individual Taxpayer Identification Number) to claim your Hawaii HARPTA refund. You simply fill out Form N-288C with your name, address, and supporting documents. This makes the HARPTA refund process straightforward.

HARPTA refunds typically take 2-3 months from when the Hawaii Department of Taxation receives your Form N-288C and supporting documents.

You'll need: (1) Your completed Form N-288C, (2) Your closing/settlement statement from the sale showing the sale price, HARPTA withholding, and expenses, and (3) Proof of your original purchase price - your purchase contract or original closing statement. These documents prove your cost basis and establish that you have little or no taxable gain.

Mail your completed Form N-288C and supporting documents to:

Hawaii Department of Taxation
P.O. Box 3559
Honolulu, HI 96811-3559

Processing time is approximately 2-3 months.

In most cases, no. The HARPTA refund process is straightforward - complete Form N-288C, attach your settlement statements, and mail it in. There's no need for an ITIN or complex tax return. Most Aulani sellers can handle this themselves without professional help. However, if you have a complicated situation or prefer professional guidance, a local tax professional can certainly assist you.

Don't worry - making a mistake is not the end of the world. If you discover an error, you can submit a corrected form to the Hawaii Department of Taxation. This may cause a slight delay in processing, but it won't result in penalties for honest mistakes. The form itself is straightforward - it's mainly just entering your sale details and purchase price.

DVC HARPTA is an informational website operated by DVC Sales. We created this site to help Aulani sellers understand the HARPTA process. We are not compensated for providing this information and we do not complete any tax forms on your behalf.

If you haven't already listed your Aulani membership for sale, we'd love the opportunity to be your selling broker at dvcsales.com. Our commission is only 6.9% - one of the lowest in the industry. Whether you choose to list with us or not, this HARPTA information is provided free of charge to help all Aulani sellers.