HONOLULU — A federal appeals court ruling on New Year’s Eve blocked Hawaii from enforcing the law Climate change tourism tax on cruise ship passengers, a tax that was scheduled to take effect at the beginning of 2026.
The Cruise Lines International Association has challenged the tax in a lawsuit, arguing that the new law violates the U.S. Constitution by taxing cruise ships to enter Hawaiian ports. They also argued that it would make cruises more expensive. The law allows counties to charge an additional 3%, bringing the total to 14% of prorated rates, the suit notes.
Tax rates increase on Hotel room and vacation rentals But it also imposes a new 11% tax on the total fares paid by cruise ship passengers, proportional to the number of days ships spend in Hawaiian ports. The law allows counties to charge an additional 3%, bringing the total to 14% of prorated rates, the suit notes.
In the first tax of its kind in the country to help deal with a Warming planetHawaii Governor Josh Green signed Legislation in May Which raises tax revenues to deal with Coastal erosion, forest fires And other climate problems. Officials estimate the tax would generate nearly $100 million annually.
U.S. District Judge Jill A. upheld Otake Last week, the plaintiffs appealed the law to the U.S. Ninth Circuit Court of Appeals. The United States government intervened in the case and also appealed Otake’s ruling.
The order by two Ninth Circuit judges granted both requests for injunctive relief pending appeal.
“We remain confident that Proposition 96 is legal and will be upheld when an appeal on its merits is heard,” Tony Schwartz, spokesman for the Hawaii Attorney General’s Office, said in an email.
Her email indicated that the order temporarily halts enforcement of the law on cruise ships while the appeals process moves forward.
The lawsuit challenged the law’s provisions for cruise ships only.
Jim McCarthy, a spokesman for the Cruise Lines International Association, said he was not sure he could get a comment from the plaintiffs given the timing of the ruling before the holiday.