
HONOLULU (AP) — A federal judge’s ruling has cleared the way for Hawaii to include cruise ship passengers in a new tourist tax to help cope with climate change, a levy set to go into effect at the start of 2026.
U.S. District Judge Jill A. Otake denied a request Tuesday that sought to stop officials from enforcing the new law on cruises.
In the nation’s first such levy to help cope with a warming planet, Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to deal with eroding shorelines, wildfires and other climate problems. Officials estimate the tax will generate nearly $100 million annually.
The levy increases rates on hotel room and vacation rental stays but also imposes a new 11% tax on the gross fares paid by a cruise ship’s passengers, starting next year, prorated for the number of days the vessels are in Hawaii ports.
Cruise Lines International Association challenged the tax in a lawsuit, along with a Honolulu company that provides supplies and provisions to cruise ships and tour businesses out of Kauai and the Big Island that rely on cruise ship passengers. Among their arguments is that the new law violates the Constitution by taxing cruise ships for the privilege of entering Hawaii ports.
Plaintiff lawyers also argued that the tax would hurt tourism by making cruises more expensive. The lawsuit notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.
“Cruise tourism generates nearly $1 billion in total economic impact for Hawai‘i and supports thousands of local jobs, and we remain focused on ensuring that success continues on a lawful, sustainable foundation,” association spokesperson Jim McCarthy said in a statement.
According to court records, plaintiffs will appeal. They asked the judge to grant an injunction pending an appeal and requested a ruling by Saturday afternoon given the law takes effect Jan. 1.
Hawaii will continue to defend the law, which requires cruise operators to pay their share of transient accommodation tax to address climate change threats to the state, state Attorney General Anne Lopez said in a statement.
The U.S. government intervened in the case, calling the tax a “scheme to extort American citizens and businesses solely to benefit Hawaii” in conflict with federal law.
Department of Justice attorneys are also asking to maintain the status quo for 30 days or until there is an appeals court ruling.
LATEST POSTS
- 1
Child influencers helped power a booming industry. It's time for a reckoning. - 2
Tesla Germany Registrations Quadruple to 9,252 Vehicles in Best March Ever - 3
Tatiana Schlossberg, a granddaughter of JFK, is dead at 35 after cancer diagnosis - 4
Vote In favor of Your Number one Game Control center - 5
Interstellar comet 3I/ATLAS will fly by Earth Friday. Here are the latest images
What an expert on the gut microbiome eats in a day
Find the Techniques for Powerful Review Propensities: Opening Your Scholarly Potential
Scientists dove hundreds of feet into the ocean and found creatures no human has ever seen. Our trash beat us there
These HGTV stars made a pledge to keep their kids off smartphones. Here's how it's going.
Bolsonaro briefly leaves Brazilian prison for medical tests after a fall from his bed
Mother and Stepson Rescued After Being Swept Over 6 Miles in Paddleboarding Mishap
Island Travel Guide: Must-Visit Objections for 2024
Sixteen Kenyans missing in Russia after army recruitment
Saturn's moon Titan may not have a buried ocean as long suspected, new study suggests












