First-of-Its-Kind Hawaii Bill Raises Tourist Taxes to Fund Climate Relief

Lawmakers in Hawaii have passed first-of-its-kind legislation that will increase the state’s lodging tax to raise money for environmental protection and strengthening defenses against natural disasters fueled by the climate crisis.

Hawaii’s governor, Josh Green, supports the creation of the so-called “green fee”, and is expected to sign it.

“This legislation, which I intend to sign, is the first of its kind in the nation and represents a generational commitment to protect our ‘āina [land],” Green said in a statement. “Hawai‘i is truly setting a new standard to address the climate crisis.”

The bill passed on Friday adds a 0.75% levy to the state’s existing tax on hotel rooms, timeshares, vacation rentals and other short-term accommodations. It also imposes a new 11% tax on cruise ship bills, prorated for the number of days the vessels are in Hawaii ports.