Hawaii Pioneering Eco Tax: Funding to Save Paradise

Hawaii has passed landmark legislation, increasing lodging taxes to fund environmental protection and climate change defense. The bill introduces a 0.75% levy and a new 11% cruise ship tax. Generating an estimated $100 million annually, this initiative aims to safeguard vulnerable areas against natural disasters and promote ecological sustainability.

In a groundbreaking move, Hawaii lawmakers have passed unprecedented legislation to increase the state's lodging tax, a measure aimed at funneling funds for environmental protection and resilience against climate change-induced disasters. Governor Josh Green has expressed his support, suggesting he will approve the measure without hesitation.

The new legislation will add a 0.75% levy on the existing tax rates for hotel rooms, timeshares, vacation rentals, and short-term accommodations. Furthermore, it imposes an 11% tax on cruise ship expenditures, calculated per day in Hawaiian ports, generating an estimated $100 million annually.

Proceeds from the tax will support projects that address ecological sustainability, such as beach sand replenishment and hurricane roof clips implementation. The bill has faced mixed reactions, with some expressing concern over potential impacts on tourism costs, though advocates argue its necessity in preserving Hawaii's natural allure for future generations.

(With inputs from agencies.)