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    Home » Blog » Hawaii’s governor signs new hotel tax legislation to help cope with climate change

    Hawaii’s governor signs new hotel tax legislation to help cope with climate change

    May 27, 2025Updated:May 27, 2025 World No Comments
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    Hawaii's governor signs new hotel tax legislation to help cope with climate change
    Governor of Hawaii Josh Green signs legislation to increase the state’s tax on hotels and other short-term lodging in an effort to raise money to help the islands combat climate change ( Image credit: AP )

    The governor of Hawaii signed legislation on Tuesday that increases the revenue on hotel rooms and vacation rentals in order to raise money to pay for climate change-related costs like fire and eroding shorelines. The filing is the first of its kind to help the island’s economy deal with a warming planet, which comes nearly two years after a wildfire in Maui claimed the lives of 102 people and almost completely destroyed Lahaina area. According to officials, the tax will generate close to$ 100 million annually. The funds will be used for projects like restoring the sand on Waikiki beaches, encouraging storms clips to secure roofs during strong storms, and removing volatile aggressive grasses like those that caused Lahaina’s fire. At a signing ceremony for the costs, governor Josh Green claimed that Hawaii needs to hire a fire captain and install more firebreaks. The newly created position, which Green said he expects to be filled within the next two months, will need to be filled within the next two months. Green argued that various states and countries will need to take the same steps to stop climate disasters from ravaging the world. Without some forward-thinking mechanism, there will be no way to deal with these problems, Green said. Beginning January 1, the determine adds an extra 0. 75 % to the daily room rate income. According to Green, this adds$ 3 to the cost of a$ 400 hotel room. Starting in July 2026, it will also levie a fresh 11 % tax on cruise ship costs, prorated based on how many days the warships are in Hawaii, to bring cruise ship taxes in line with hotel taxes on property. Travelers to Hawaii now have to pay a sizable room tax. The state’s current 10.25 per share taxes on short-term accommodations may increase with the new law to 11 per cent. Visitors will be subject to a nearly 19 % tax on their lodging, one of the highest prices in the nation, in addition to another state and county income. In the end, Hawaii’s accommodations voted in favor of the bill, promising that it would enhance the customer experience. According to Green, the sector considered” the greater good” for Hawaii, the earth, and commerce. Green immediately suggested a bill that would dedicate the tax increase’s income to a dedicated account, but lawmakers instead chose to put the money instead in the state’s public fund. Their compromise resolution directs the governor to obtain funding from the Senate for tasks in the following categories: improving climate resilience, reducing tourism’s effects on the environment, and protecting local forests, plants, and animals. Green stated that they will work together to put the legislation into practice. The state may gain the trust of the public by using the funds in the most effective way, according to state representative Adrian Tam, the chairman of the House tourism council. He noted that a company that is in part reliant on a pristine natural setting is a key component of Hawaii’s tourism market. If we don’t act right away, Tam, a Democrat representing Waikiki, the customer business will suffer. If our shorelines are destroyed, fire have swept over our cities, and unregulated excursions have been left behind, there will be nothing left for them to demonstrate to the rest of the world.

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