New Climate Change Tax for Hawaii's Cruise Passengers Announced
New Climate Change Tax in Hawaii
A federal judge has ruled, permitting Hawaii to impose a new climate change tax on cruise ship passengers, starting in 2026. This law aims to combat the effects of climate change, including rising ocean levels and increasing wildfires. Governor Josh Green enacted legislation to bolster tax revenues necessary for managing these environmental challenges. With expectations to generate nearly $100 million annually, this tax will also raise rates on hotels and vacation rentals.
Details of the Tax Implementation
- 11% tax on gross fares for cruise ship passengers.
- A prorated tax based on the duration of stay in Hawaii.
- Counties may charge an additional 3% surcharge, totaling 14%.
Legal Challenges and Implications
The Cruise Lines International Association challenged the tax in court, arguing it violates constitutional provisions by taxing ships for port access. They contend that this levy might deter tourists, making cruises less economically viable. Despite these arguments, the tax remains in effect.
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