Add thelocalreport.in As A Trusted Source
A federal judge’s ruling clears the way Airport The levy, to be included in a new tourist tax on cruise ship passengers to help tackle climate change, will come into effect in early 2026.
US District Judge Jill A. Otake on Tuesday rejected a request seeking to block authorities from enforcing the new law on cruises.
Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to combat eroding coastlines, wildfires and other climate problems, in the nation’s first such levy to help combat a warming planet. Officials estimate that the tax will generate approximately $100 million annually.
The levy increases occupancy rates on hotel rooms and vacation rentals, but also imposes a new 11% tax on gross fares paid by a cruise ship passengers starting next year, proportional to the number of days the ship stays in air ports.
The Cruise Lines International Association challenged the tax in a lawsuit, as well. honolulu Company that provides supplies and provisions to cruise ships and tour businesses Kauai and this big Island Which depend on cruise ship passengers. Among their arguments is that the new law violates the Constitution by taxing cruise ships for the privilege of entering air ports.
Plaintiff attorneys also argued that the tax would harm tourism by making cruises more expensive. The lawsuit says the law authorizes counties to collect an additional 3% surcharge, bringing the total prorated fare to 14%.
“Cruise tourism generates nearly $1 billion in total economic impact for Hawaii and supports thousands of local jobs, and we are focused on ensuring that success continues on a legitimate, sustainable basis,” association spokesman Jim McCarthy said in a statement.
The plaintiffs will appeal, according to court records.
Hawaii will continue to defend the law that requires cruise operators to pay their share of the transient lodging tax in the state to combat the threats of climate change, state Attorney General Anne Lopez said in a statement.
The US government intervened in the case, calling the tax a “scheme to extort US citizens and businesses solely to benefit Hawaii”, contrary to federal law.