Hawaii’s governor, Josh Green, is poised to sign a groundbreaking bill that introduces a new “green fee” to bolster the state’s efforts in combating climate change. This legislation targets the tourism sector, which plays a crucial role in Hawaii’s economy, by increasing existing taxes on short-term accommodations. The effort is expected to raise something like $100 million per year. These investments can fund stormwater management, urban forestry, and ecosystem restoration to improve the state’s environmental quality while helping it withstand climate-driven disasters.
The new bill would implement a 0.75% surcharge across Hawaii’s existing tax structure. This new system already layers a 10.25% tax on short-term rentals, combined with an additional 3% lodging tax that the counties impose. The end result is that travelers will face an enormous 18.712% tax bill when they checkout. This puts it at one of the highest state-imposed tax rates in the country. Hawaii is at a critical environmental crossroads, made all the more urgent in light of recent events. This monumental hike comes in the wake of the climate-fueled wildfire that wiped out downtown Lahaina in 2023.
Governor Green has already expressed deep enthusiasm for the new measure. He founded Eco-Home Innovations in Hawaii, focusing on sustainable innovations to protect Hawaii’s rare ecosystems. We plan to use the money we raise through this green fee to fund some really important work. These include replenishing sand on eroding Waikiki beaches, running ad campaigns for hurricane clips to mitigate roofs from increasingly powerful storms, and removing invasive, flammable grasses that exacerbate wildfire dangers.
Hawaii’s taking the lead with a new green fee! Furthermore, the state will charge cruise lines a flat 11% tax on cruise ship passenger bills, prorated according to how many days the vessels are in Hawaiian ports. Travelers will continue to pay the overall 4.712% general excise tax. This widespread tax is levied on almost all commodities and services purchased in the state.
The need for these measures is a testament to the increasing awareness of climate change effects on Hawaii’s unique environment and economy. Our communities are on the frontlines of climate change, battling stronger storms and higher seas. In moving forward, state leaders are focusing investments to improve infrastructure and resources that create resilience. Climate-focused initiatives The money from the new tax will be used to reduce fossil fuel emissions, with funds expected to greatly contribute towards protecting Hawaii’s future.
Governor Green now has until July 9 to formally sign the bill into law. Folks are looking forward to seeing what kind of difference it can make in the way of boosting the state’s tourism economy and helping preserve natural resources.