New tax would raise hotel rates by 11% while imposing new 11% tax on cruises
By Ashley J. DiMella Fox News
Hawaii’s “Green Fee” bill will raise tourist taxes to help fund “climate-change” mitigation — and now a lawsuit has been filed that challenges it.
The Transient Accommodations Tax (TAT) will raise the tax on tourists who stay at Hawaii hotels to 11% while imposing a new 11% tax on cruises, according to the text of the bill.
The Cruise Lines International Association, along with a cruise ship supplier, filed a lawsuit against state tax and county finance officials in the Aloha State.
“We believe the extension violates both the U.S. Constitution and federal law, while imposing an additional financial burden on passengers already subject to substantial fees and taxes,” CLIA said in a statement sent to Fox News Digital.
The association also pointed out the benefits that cruise tourism brings as a major economic driver for the state.
“Extending the TAT to cruise passengers threatens to deter visitors whose spending fuels this economic engine, risking job losses and eroding the financial stability of businesses dependent on tourism,” CLIA added.
The lawsuit points out that the state’s counties each add their own 3% surcharge on top of the state’s tax – bringing the tax to 14%.
Portions of the newly raised revenue would go into the “Climate Mitigation and Resiliency Special Fund” and the “Economic Development and Revitalization Special Fund,” according to the bill.
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The “green fee” is projected to generate $100 million annually, according to the release.
