The US Administration is backing the cruise industry’s legal challenge against Hawaii’s tax levy.
The Department of Justice issued a motion to intervene.
The DOJ said it is a ‘scheme to extort American citizens and businesses.’
It claims it violates two laws – the Tonnage Clause of the U.S. Constitution and the Rivers and Harbors Appropriation Act of 1884.
The office of Hawaii Attorney General Anne Lopez, said it is ‘vigorously defending the legality’ of the tax law
Cruise Lines International Association filed suit on behalf of cruise lines against Hawaii in August.
CLIA is trying to block the 11% surcharge on the gross fare paid by passengers for the time docked in port.
There is also a surcharge payable to Hawaii counties.
The tax schedule takes effect from January 1.
The DOJ claims it is ‘ultimately funding Hawaii’s ‘green’ climate change initiatives.’
“This court must act swiftly to preserve the supremacy of federal law, ending Hawaii’s regime that openly flouts the Constitution and federal law for its own political gain,” DOJ said.
Hawaii’s “green fee” specifically is expected to raise millions each year due to the increase in the transient accommodations tax which cruise lines are now on the hook for.
