Last-Minute Ruling Halts Hawaii’s 11% Cruise Tax
In a dramatic New Year’s Eve decision, a federal appeals court has temporarily blocked Hawaii from enforcing its controversial 11% climate change tax on cruise ship passengers. This provided relief to travelers just hours before the levy was set to take effect on January 1, 2026.
The Ninth Circuit Court of Appeals granted an injunction pending appeal after the Cruise Lines International Association challenged the “Green Fee.” They argued it violates the U.S. Constitution by taxing cruise ships for entering Hawaii ports. The tax would have increased cruise fares by hundreds of dollars, with counties authorized to add an additional 3% surcharge, bringing the total to 14% of prorated fares.
As a result of the ruling, cruise passengers heading to Hawaii in 2026 will not face the additional tax charges while the legal challenge proceeds. However, increased hotel and vacation rental taxes under the same legislation have gone ahead as planned. Hawaii’s Attorney General’s office stated they “remain confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits.”
The green fee was designed to generate approximately $100 million annually for climate mitigation efforts including:
- Eroding shorelines
- Wildfire prevention
Source: Fox News