HONOLULU (AP) — A federal judge’s ruling paves the way for… Hawaii To include cruise ship passengers on a New tourist tax To help deal with climate change, the tax is scheduled to come into force at the beginning of 2026.
U.S. District Judge Jill A. refused. Otake on Tuesday filed a request seeking to prevent officials from enforcing the new law on cruises.
In the first tax of its kind in the country to help deal with a Warming planetHawaii Governor Josh Green signed legislation In May this leads to more tax revenue to deal with Coastal erosion, forest fires And other climate problems. Officials estimate the tax would generate nearly $100 million annually.
The tax increases rates for hotel rooms and vacation rentals, but also imposes a new 11% tax on the total prices paid by cruise ship passengers, starting next year, in proportion to the number of days ships spend in Hawaiian ports.
International Association of Cruise Lines Challenge the tax In a lawsuit, the Honolulu company, which provides supplies and supplies to cruise ships and tour companies outside Kauai and the Big Island that relies on cruise ship passengers, sided with the lawsuit. Among their arguments is that the new law violates the Constitution by taxing cruise ships for the privilege of entering Hawaiian ports.
Plaintiffs’ lawyers also argued that the tax would hurt tourism by making cruises more expensive. The law allows counties to charge an additional 3%, bringing the total to 14% of prorated rates, the suit notes.
“Cruise tourism generates nearly $1 billion in total economic impact for Hawaii and supports thousands of local jobs, and we remain focused on ensuring continued success on a legal and sustainable basis,” association spokesman Jim McCarthy said in a statement.
According to court records, plaintiffs will appeal. They asked the judge to issue an injunction pending the appeal and requested a ruling by Saturday afternoon since the law takes effect on January 1.
State Attorney General Anne Lopez said in a statement that Hawaii will continue to defend the law requiring cruise operators to pay their share of the transient lodging tax to address climate change threats to the state.
The US government intervened in the case, calling the tax a “scheme to extort American citizens and companies solely for the benefit of Hawaii” in contravention of federal law.