Travel Cruise Taxes Blocked: Federal Court Halts Hawaii's Tourist Tax
Travel Cruise Taxes Blocked
A federal appeals court ruling on New Year’s Eve blocked Hawaii from enforcing a climate change tourist tax on cruise ship passengers, a levy set to begin in 2026. The Cruise Lines International Association challenged this tax, arguing that it violates the U.S. Constitution by imposing charges on cruise ships entering Hawaii ports.
Impact of the Tax
- It would have raised the costs for cruise passengers through an 11% tax on gross fares.
- Additionally, counties could impose a further 3% surcharge, totaling 14% on prorated fares.
- The tax was anticipated to generate nearly $100 million annually for climate-related issues.
Governor Josh Green had signed the legislation in May to fund efforts against climate change-related challenges such as eroding shorelines and wildfires. Following U.S. District Judge Jill A. Otake's ruling upholding the law, the plaintiffs appealed to the 9th U.S. Circuit Court of Appeals.
The court's injunction pending the appeals represents a significant legal victory for the cruise industry as well as concerns regarding taxation methods for environmental funding.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.