Legislative session ends with tourism tax increase to fund climate resiliency

By Ashley Mizuo for Hawaiʻi Public Radio

Bills are on their way to the governor, and state lawmakers are already looking into the future.

The legislative session wrapped up Friday with lawmakers passing the country’s first Green Fee — a tax on tourists to support the climate.

It raises the state’s tax on hotels by 0.75 of a percentage point to 11%. It also applies that 11% tax on cruise ships docking in Hawaiʻi. Hawaiʻi’s four counties separately each charge a 3% lodging tax.

The bill also includes a provision where the governor will request that the extra tax proceeds go to specific climate resiliency measures. That budget would then need to be approved by the Legislature.

“The passage of this bill is a historic achievement. It honors both the legacy of stewardship here in Hawaiʻi, but creates a new funding source for our climate resilience and natural resource management,” said Jack Kittinger with Care for ʻĀina Now.

Click here to read the article and listen to the recording aired on May 5, 2025.