Archive · 28 May 2025
Hawaii Enacts Hotel Tax Increase to Address Climate Change
Imagine Hawaii is facing big problems from climate change, like beaches disappearing and wildfires.
To help, the state is raising taxes on hotels and soon, cruise ships.
This extra money will be used to fix things like beaches, make buildings safer from storms, and prevent wildfires.
It's like a special fund to protect Hawaii's beautiful nature, which is important because many people visit just for that.
The government hopes this will help keep the islands a great place to live and visit, even as the climate changes.
Hawaii's governor signed legislation increasing taxes on hotel rooms and cruise ships to combat climate change impacts.
The tax increase adds 0.75% to the existing room rate tax, generating an estimated $100 million annually.
Funds will be used for projects like beach replenishment, promoting storm-resistant infrastructure, and wildfire prevention.
A new 11% tax on cruise ship bills, prorated for days in port, will start in July 2026.
The state's existing 10.25% tax on short-term accommodations will climb to 11%, with visitors paying nearly 19% in total taxes.
- Who
- Hawaii's Governor Josh Green
- What
- Signed legislation increasing taxes on hotel rooms and cruise ships.
- When
- The legislation was signed Tuesday
- Where
- Hawaii
- Why
- To address the impacts of climate change, such as eroding shorelines and wildfires.
- Governor
- Josh Green
- Legislation
- Boosts tax on hotel rooms & vacation rentals
- Expected Revenue
- $100 million annually
- Fund Usage
- Replenishing beaches, promoting hurricane clips, clearing flammable grasses
- Room Tax Increase Start
- January 1, 2026
- Cruise Ship Tax
- 11% tax, prorated
- Cruise Ship Tax Start
- July 2026
- Total Tax on Accommodations
- Nearly 19%