New Climate Change Tax on Hotels and Cruise Ships Set to Take Effect Soon

The state’s new Green Fee, set to aid climate resilience projects, will be enforced starting January 1, 2026. This fee will increase the tax on visitors by 0.75 percentage points and will also apply to cruise ships, which previously did not contribute to the state’s transient accommodations tax of 11%.

The Cruise Lines International Association challenged this policy in court, claiming it violated federal trade protections. However, Federal Judge Jill Otake dismissed most of the lawsuit, ruling that blocking the law would unfairly favor cruise operators over land-based hotel accommodations.

The Green Fee is projected to generate around $100 million annually, contributing to Governor Josh Green’s budget proposal for the state’s finances. With the Green Fee in place, combined with other taxes, visitors will face an overall tax exceeding 18% on hotel and vacation rentals.

For further information on this legislation, you can refer to the related articles on the Green Fee and the cruise industry lawsuit.

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