Hawaii’s Green Fee Bill Blocked by Judge
A judge has put a stop to Hawaii’s green fee legislation, which aimed to raise tourism taxes significantly to fund climate change efforts this year.
Earlier, the Cruise Lines International Association (CLIA) and various cruise ship suppliers took legal action against tax and finance officials in Hawaii, initiating a lawsuit in early September.
On December 31, the 9th U.S. Circuit Court of Appeals granted an injunction pending the appeal.
The Associated Press reports that enforcement of this cruise ship tax will remain on hold while the appeals process unfolds.
The proposed Transitional Accommodation Tax (TAT) would increase taxes for tourists staying in hotels throughout Hawaii and introduce a new 11% tax on cruise ships.
Toni Schwartz, a representative from the Hawaii Attorney General’s Office, mentioned that they are confident in the legality of the Act 96 and believe it will be validated when the appeal is heard.
CLIA, in its previous statement, argued that the amendment infringes upon both the U.S. Constitution and federal laws, adding extra financial strain for passengers already dealing with high fees and taxes.
They also emphasized the economic benefits that cruise tourism brings to the state, a crucial point for many local businesses. The lawsuit notes that along with state taxes, each county imposes an additional 3% surcharge, raising the total tax rate for cruise passengers to 14%.
The bill suggests that part of the revenue generated will be allocated for a “Special Fund for Climate Change Mitigation and Resilience” as well as a “Special Fund for Economic Development and Revitalization.”
Hawaii’s lawmakers expect these green fees to yield around $100 million annually. The bill further aims to address issues related to invasive species, wildlife protection, and coastal restoration efforts.
In 2024, about 168,123 visitors arrived in Hawaii via cruise ships, according to the Hawaii Tourism Board. This volume highlights just how critical tourism is for the state’s economy.
