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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.
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“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.
The Transient Accommodations Tax (TAT) raises the tax on Hawaii hotel fees to 11% while imposing a new 11% tax on cruises. (iStock)
“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%.
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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.
The bill addresses invasive species, wildlife conservation and beach management and restoration.
Portions of the revenue raised would go into the “Climate Mitigation and Resiliency Special Fund” and the “Economic Development and Revitalization Special Fund,” according to the text of the bill. (iStock)
It will also help fund a “green jobs youth corps,” as well as areas of environmental concern.
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In 2023, 9.6 million visitors traveled to Hawaii, according to the Hawaii Tourism Authority.
The “green fee” is projected to generate $100 million annually, according to the release.
In 2023 alone, 9.6 million visitors traveled to the state of Hawaii. (iStock)
In a statement to Fox News Digital, the Hawaii Department of the Attorney General said the department was recently served with the complaint.
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“We will reserve comment until we have had a chance to fully review it,” it read.
The Associated Press contributed reporting.