Cruise Industry Sues Hawaii Over Tourist Tax

Be funny as hell if the cruise ships said “nah, bru, we’re going to change our routes and not bring all those paying customers”

Cruise industry sues to challenge Hawaii’s tourism tax designed to deal with climate change issues

A lawsuit challenging the constitutionality of Hawaii imposing a tourist tax to deal with consequences of climate change seeks to stop officials from enforcing the new law on cruise ship passengers.

In the nation’s first such levy to help cope with a warming planet, Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to deal with eroding shorelines, wildfires and other climate problems. Officials estimate the tax will generate nearly $100 million annually.

The levy increases rates on hotel room and vacation rental stays but also imposes a new 11% tax on the gross fares paid by a cruise ship’s passengers, starting next year, prorated for the number of days the vessels are in Hawaii ports. The lawsuit, filed in U.S. court in Honolulu this week, notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.

“No other State imposes comparable fees — and for good reason: It has been a fundamental principle since the Founding that the navigable waters of the United States are a common resource, not one to be commandeered by individual States for their own parochial revenue-raising interests,” attorneys representing the Cruise Lines International Association wrote in a motion asking a judge to prevent the state and counties from collecting the tax on cruise ships while the lawsuit is pending.

A Honolulu company that provides supplies and provisions to cruise ships, and tour businesses out of Kauai and the Big Island that rely on cruise ship passengers joined the cruise ship association in the lawsuit.

If those ships do not come to Hawaii, that’s a lot of lost revenue to hotels, vehicle rentals, all sorts of tourist spots, those who do the supplies and provisions, and more.

According to the lawsuit, the cruise ship industry draws nearly 300,000 annual visitors to Hawaii, supporting thousands of jobs throughout the state and contributing more than $600 million a year to the economy.

The tax would make Hawaii cruises too expensive, and potential visitors will choose to vacation elsewhere, the lawsuit said.

The ships won’t pay it, they’ll charge more. And cruise ships do bring a small amount of goods to ports. I wonder if the lawyers will note that Hawaii has a large number of airports for airplanes and helicopters? That they have a large number of fossil fueled boats, buses, and motor vehicles? They should offer photos of the governor and members of their general assembly taking fossil fueled vehicles and flights.

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