Hawaii lawmakers raise the state’s hotel tax to help the islands cope with climate change

Hawaii lawmakers passed on Friday first-of-its-kind legislation that will increase the state’s lodging tax to raise money for environmental protection and strengthening defenses against climate change -fueled natural disasters.

Gov. Josh Green supports the bill, indicating he will sign it. The bill adds a 0.75% levy to the state’s existing tax on hotel rooms, timeshares, vacation rentals and other short-term accommodations. It also imposes a new 11% tax on cruise ship bills, prorated for the number of days the vessels are in Hawaii ports.

Officials estimate the tax will generate nearly $100 million annually. They say the money will be used for projects like replenishing sand on eroding Waikiki beaches, promoting the use of hurricane clips to secure roofs during powerful storms and clearing flammable invasive grasses like those that fed the deadly wildfire that destroyed downtown Lahaina in 2023.

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Experts say this is the nation’s first state lodging tax that raises money for the environment and coping with climate change.

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