Judge upholds Hawaii’s ‘Green Fee’ tax. What that means for travelers.
A federal judge has upheld Hawaii’s new tax on cruises and other travel accommodations.
Judge Jill A. Otake refused to halt implementation of the tax, according to a Dec. 23 filing in the District of Hawaii. The state passed the nation’s first “Green Fee” earlier this year, increasing its tax on temporary lodging from 0.75% to 11% to fund climate change resilience projects and other environmental efforts.
The higher rate, set to take effect Jan. 1, applies to hotels, vacation rentals and — for the first time — cruises.
The industry’s main trade group, the Cruise Lines International Association (CLIA), filed a lawsuit against the tax in August, arguing that the change violated federal law, in part because it conflicted with the tonnage clause of the U.S. Constitution. Honolulu Ship Supply Co., Kaua’i Kilohana Partners and Aloha Anuenue Tours LLC were also listed as plaintiffs.
“If Act 96’s unconstitutional fees take effect on January 1, 2026… they will significantly increase the cost of cruises to Hawaii and cause many potential visitors to vacation elsewhere,” the Aug. 27 lawsuit says. CLIA immediately responded to a request for comment on Otake’s decision.
“The Department of the Attorney General is very pleased with today’s decision,” Hawaii Attorney General Anne Lopez said in a Dec. 23 press release. “The vast majority of the cruise industry’s claims have been dismissed. Although the litigation is not over, we are confident in the legality of this law and will continue to vigorously defend it on behalf of the Hawaiian people.”
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.
This article originally appeared on USA TODAY: Judge upholds Hawaii ‘green fee’ after cruise industry lawsuit
