A last-minute ruling has blocked the implementation of a hefty passenger tax for cruise lines in Hawaii, just hours before it was due to start.
A federal appeals court ruling has blocked Hawaii from enforcing a climate change tourist tax, which aims to include cruise ship passengers in its transient accommodation tax.
Cruise Lines International Association took legal action and has won an injunction pending the full appeals process.
Cruise lines were to be included for the first time under the transient tax.
While cruise lines have won a stay for now, hotels and accommodation rentals must continue paying tax as usual.
They pay a 11% tax and up to 3% in local county surcharges.
For the first time it includes a specific levy to mitigate climate-related issues.
CLIA argued that including cruise lines in the tax violates the US Constitution, which is an argument supported by the federal government.
Cruise line would’ve been liable for tax based on the time they spent in port in Hawaii.
Hawaii is the first place to implement a fee specifically for funding climate action initiatives.
State officials estimate would raise up to $100 million annually.
Despite the 9th Circuit ruling granting the injunction, the Hawaii attorney general’s office maintains the new tax mechanism is lawful and it will be vindicated during the appeal hearing.
