
HONOLULU (AP) — A federal judge’s ruling has cleared the way for Hawaii to include cruise ship passengers in a new tourist tax to help cope with climate change, a levy set to go into effect at the start of 2026.
U.S. District Judge Jill A. Otake denied a request Tuesday that sought to stop officials from enforcing the new law on cruises.
In the nation’s first such levy to help cope with a warming planet, Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to deal with eroding shorelines, wildfires and other climate problems. Officials estimate the tax will generate nearly $100 million annually.
The levy increases rates on hotel room and vacation rental stays but also imposes a new 11% tax on the gross fares paid by a cruise ship’s passengers, starting next year, prorated for the number of days the vessels are in Hawaii ports.
Cruise Lines International Association challenged the tax in a lawsuit, along with a Honolulu company that provides supplies and provisions to cruise ships and tour businesses out of Kauai and the Big Island that rely on cruise ship passengers. Among their arguments is that the new law violates the Constitution by taxing cruise ships for the privilege of entering Hawaii ports.
Plaintiff lawyers also argued that the tax would hurt tourism by making cruises more expensive. The lawsuit notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.
“Cruise tourism generates nearly $1 billion in total economic impact for Hawai‘i and supports thousands of local jobs, and we remain focused on ensuring that success continues on a lawful, sustainable foundation,” association spokesperson Jim McCarthy said in a statement.
According to court records, plaintiffs will appeal. They asked the judge to grant an injunction pending an appeal and requested a ruling by Saturday afternoon given the law takes effect Jan. 1.
Hawaii will continue to defend the law, which requires cruise operators to pay their share of transient accommodation tax to address climate change threats to the state, state Attorney General Anne Lopez said in a statement.
The U.S. government intervened in the case, calling the tax a “scheme to extort American citizens and businesses solely to benefit Hawaii” in conflict with federal law.
Department of Justice attorneys are also asking to maintain the status quo for 30 days or until there is an appeals court ruling.
LATEST POSTS
- 1
Dad issues urgent plea to find stem cell donor for his son - 2
Explainer-What will change with the US reclassification of marijuana? - 3
Photos: Hundreds Gather at Bondi Beach After Deadly Attack - 4
The most effective method to Go Down Abundance through Ages with Disc Rates - 5
The next frontier in space is closer than you think – welcome to the world of very low Earth orbit satellites
Iran denies launching ballistic missiles towards Kurdistan region of Iraq
Select Your Cherished Fish
NASA Artemis 2 astronauts to make historic moon flyby today. Here's what to expect hour by hour (timeline)
Looking for a great Thanksgiving side dish recipe? These are the crowd-pleasers the Yahoo team swears by.
Russia confirms 16 Cameroonian soldiers killed in Ukraine war
NASA set to launch Artemis 2 moon mission today, the 1st crewed lunar flight since 1972
James Webb Space Telescope spies mysterious high-energy radiation in star nursery
Bavarian leader questions Germany's Eurovision participation
Trying to improve your health and wellness in 2026? Keep it simple













