A federal appeals court ruling on New Year's Eve has blocked Hawaii from enforcing a climate change tourist tax on cruise ship passengers, a levy that was scheduled to take effect at the start of 2026.
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abcnews.go.comb97hawaii.comThe Cruise Lines International Association (CLIA) challenged the tax in a lawsuit, claiming that the new law violates the US Constitution by imposing a tax on cruise ships for entering Hawaii ports.
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b97hawaii.comThey argued that the tax would lead to increased costs for cruise passengers, making vacations more expensive.
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miningjournal.netThe proposed tax included an 11% levy on the gross fares paid by cruise ship passengers, prorated for the number of days the vessels are docked in Hawaii.
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abcnews.go.comAdditionally, the law authorized counties to collect an extra 3% surcharge, bringing the total tax on cruise fares to 14%.This tax was part of a broader initiative to raise funds for addressing climate-related issues such as eroding shorelines and wildfires.
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b97hawaii.comminingjournal.netHawaii Governor Josh Green signed the legislation in May, which was touted as the first of its kind in the nation aimed at combating climate change.
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abcnews.go.comOfficials estimated that the tax could generate nearly $100 million annually to support environmental initiatives.
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b97hawaii.comUS District Judge Jill A.Otake initially upheld the law, but the CLIA appealed to the 9th US Circuit Court of Appeals, prompting the US government to intervene in the case.
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b97hawaii.comThe order from two judges of the 9th Circuit granted both the CLIA and the government an injunction pending the appeals process, effectively halting the enforcement of the tax on cruise ships.
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miningjournal.netToni Schwartz, a spokesperson for the Hawaii attorney general's office, expressed confidence that the law, known as Act 96, would ultimately be upheld when the appeal is heard.
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abcnews.go.comThe lawsuit specifically challenged only the provisions of the law related to cruise ships.
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b97hawaii.comAs the appeals process unfolds, the future of Hawaii's climate change tax on cruise ships remains uncertain, with stakeholders on both sides awaiting the court's final decision.
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miningjournal.netThe CLIA's spokesperson, Jim McCarthy, noted the timing of the ruling before a holiday may affect their ability to comment further on the matter.
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b97hawaii.comThe outcome of this case could have significant implications for how states address climate change through taxation and regulation in the tourism sector.
