Hawaii’s ‘climate’cash grab hits wall as court blocks hefty new tourist tax

Hawaii’s “Green Fee” cruise ship tax has been temporarily blocked by a Ninth Circuit court injunction after the Cruise Lines International Association filed a lawsuit challenging the 11% tourist tax.(iStock)

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Toni Schwartz, spokesperson for the Hawaii attorney general’s office, told AP the office “remain[s] confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits.”

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Portions of the revenue raised would go into the “Climate Mitigation and Resiliency Special Fund.”

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�believe[s] the extension violates both the U.S.Constitution and federal law, while imposing an additional financial burden on passengers already subject to substantial fees and taxes.”

cruise tourism brings as a major economic driver of the state.

“We remain confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits,” said a spokesperson for the Hawaii attorney general’s office. (Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images)

“Extending the TAT to cruise passengers threatens to deter visitors whose spending fuels this economic engine, risking job losses and eroding the financial stability of businesses dependent on tourism,” CLIA added.

The lawsuit points out that the state’s counties each add their own 3% surcharge on top of thestate’s tax— bringing the total tax to 14%.

Climate Mitigation and Resiliency Special Fund” and the “Economic Development and Revitalization Special Fund,” according to the bill.

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Some 168,123 visitors traveled to Hawaii by cruise ship in the year 2024.(iStock)

The bill addresses invasive species, wildlife conservation, and beach management and restoration. 

It will also help fund a “green jobs youth corps,” as well as areas of environmental concern.

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In 2024, 168,123 visitors traveled to Hawaii by cruise ship, according to the Hawaii Tourism Authority.

The “Green Fee” is projected to generate $100 million annually, according to the release. 

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The Associated Press contributed reporting.

Ashley J.