Federal Judge Upholds Hawaii Cruise Climate Tax
U.S. District Judge Jill A. Otake denied a request to block enforcement of Hawaii’s new tourist tax on cruise passengers, allowing it to take effect next year. Gov. Josh Green signed the legislation in May; officials expect it to generate nearly $100 million annually to support climate‑related projects.
The tax raises hotel‑room and vacation‑rental rates and adds an 11 % charge on cruise passengers’ gross fares. The amount is prorated based on the number of days vessels spend in Hawaiian ports. Counties may add a 3 % surcharge, making the total up to 14 % of prorated fares.
The Cruise Lines International Association and a local supplier sued, claiming the tax violates the Constitution and harms tourism. They sought an injunction ahead of the January 1 effective date and planned to appeal after the ruling.
Hawaii will defend the law; state Attorney General Anne Lopez said the measure is lawful and essential for climate resilience. The U.S. government intervened, calling the levy a scheme that favors Hawaii over American businesses and citizens.