Trade group Cruise Lines International Association is suing the state of Hawaii claiming proposed cruise fees are a ‘blatant violation’ of the constitution.
The State of Hawaii, the Hawaii Department of Taxation, the County of Kauai, the City and Council of Honolulu, the County of Maui, and the County of Hawaii are named as defendants in the lawsuit.
The complaint relates to the ‘green tax’ set to be implemented next year.
The new fee schedule expands Hawaii’s 11% transient accommodations tax to cruise ships for the first time.
CLIA said, on behalf of its cruise line members, it is unconstitutional.
Along with local county taxes, it could represent a rate of 14%.
“The cruise industry opposes the extension of Hawaii’s Transient Accommodations Tax to cruise ship passengers. 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.
“Such a policy risks undermining a critical sector of Hawaii’s economy without justification. That’s why we are pursuing all appropriate means to make sure that doesn’t happen, including filing suit.”
