Hawaii’s New Cruise Tax Is Blocked by an Appeals Court.
According to ABC News, a federal appeals court prevented Hawaii from imposing a tourist fee on cruise passengers due to climate change. As Cruise Industry News previously reported, the new tax was scheduled to take effect on January 1, 2026. According to the new report, CLIA and other stakeholders initiated a process that resulted in a temporary halt to the tax on New Year’s Eve. The case, which was supported by the Trump Administration, alleged that Hawaii’s new tax law was unconstitutional. According to CLIA’s proceedings, the price also puts a financial strain on travellers who already have to pay high fees and taxes.
The cruise tax is a component of Act 96, a broader new law that was approved by the Hawaii State Legislature in May. Governor Josh Green claimed at the time that the new tax was intended to assist Hawaii in adapting to global warming. The rule stipulates that cruise passengers must pay an 11 percent tax of the prorated cruise ticket for the days they are stopped at Hawaiian ports. The plan permits counties to collect an extra 3 percent tax, increasing the total to 14 percent of prorated rates, according to CLIA’s lawsuit.
According to ABC News, plaintiffs filed an appeal with the 9th U.S. Circuit Court of Appeals after U.S. District Judge Jill A. Otake upheld the statute during the final week of December. According to the article, the U.S. government challenged Otake’s decision and got involved in the case. Both motions for an injunction until the appeals were later granted by two judges of the 9th Circuit. In an email to ABC News, Toni Schwartz, a representative for the Hawaii attorney general’s office, stated, “We remain confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits.” Disney Cruise Line, one of the businesses impacted by the new tax, told visitors about it in October.
