Hawaii Cruise Tax Suspended Following Federal Court Injunction Ruling


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Hawaii’s Green Fee bill was supposed to significantly increase tourism taxes to help fund “climate change” mitigation this year – but a judge has now put that provision on hold.

The Cruise Lines International Association (CLIA), along with a cruise ship supplier, filed a trial in early September challenge county tax and finance officials across the Aloha State, as Fox News Digital previously reported.

On December 31, the Ninth United States Circuit Court of Appeals issued an injunction pending appeal.

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It temporarily blocks the application of the tax on cruise ships while calls continuereported the Associated Press (AP).

The Transient Accommodation Tax (TAT) planned to increase the tax on tourists who stay in hotels in Hawaii while imposing a new 11% tax on cruises, according to the text of the bill.

aerial view of Hawaii with cruise ship on the horizon

Hawaii’s Green Fee tax on cruise ships was temporarily blocked by an injunction from the Ninth Circuit after the Cruise Lines International Association filed a lawsuit challenging the 11 percent tourist tax. (iStock)

Toni Schwartz, a spokeswoman for the Hawaii attorney general’s office, told AP that the office “remains[s] confident that Bill 96 is legal and will be vindicated when the appeal is heard on its merits.”

Fox News Digital has contacted CLIA for comment.

Part of the revenue collected would be donated to the “Special Fund for Climate Change Mitigation and Resilience”.

The association previously told Fox News Digital that it “believes[s] the extension violates both the American Constitution and federal law, while imposing an additional financial burden on passengers already subject to significant fees and taxes.

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The association also highlighted the benefits that cruise tourism constitutes a major economic engine of the State.

Hawaii, Auau Channel, cruise ship deck.

“We remain confident that Act 96 is legal and will be vindicated when the appeal is heard on the merits,” said a spokesperson for the Hawaii Attorney General’s Office. (Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images)

“The extension of the TAT to cruise lines threatens to deter visitors whose spending fuels this economic engine, risking job losses and eroding the financial stability of tourism-dependent businesses,” CLIA added.

The lawsuit points out that counties across the state each add their own 3% surcharge on top of the state tax — bringing the total tax to 14%.

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A portion of the revenue collected would be donated to the “Climate mitigation and Resilience” and the “Special Economic Development and Revitalization Fund,” according to the bill.

Hawaii Green Fee Fee

Some 168,123 visitors traveled to Hawaii by cruise ship in 2024. (iStock)

The bill addresses invasive species, wildlife conservation and beach management and catering.

It will also help fund a “green jobs youth corps”, as well as areas of environmental concern.

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In 2024, 168,123 visitors traveled to Hawaii by cruise ship, according to the Hawaii Tourism Authority.

The “Green Fee” is expected to generate $100 million per year, according to the press release.

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The Associated Press contributed to this report.



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