Raising the hotel tax in Hawaii to finance measures addressing the impacts of climate change on the islands.
Informal Version:
Hawaii has taken a major step forward by passing a groundbreaking legislation that boosts their lodging tax. This is aimed at funneling cash into protecting the environment and beefing up defenses against climate change-induced disasters.
The bill, set to be signed by Governor Josh Green, adds a 0.75% tax to the state's existing hotel room, timeshare, vacation rental, and short-term accommodation tax. Additionally, it imposes an 11% tax on cruise ship bills, based on the number of days the ships dock in Hawaii ports.
Experts agree this is the first state lodging tax in the nation dedicated to environmental protection and combating climate change. Currently, Hawaii already levies a 10.25% tax on short-term rentals, which will rise to 11% starting January 1. On top of this, the state's counties charge a 3% lodging tax, and travelers have to pay a 4.712% general excise tax on most goods and services. By January 1, 2025, the cumulative tax bill at checkout will reach a whopping 18.712%, making Hawaii one of the priciest destinations in the country.
Green believes the increase is minimal enough that travelers won't feel the pinch. He thinks tourists will be thrilled to ponied up to safeguard shorelines and communities.
"The more we cultivate good environmental policy, and the more we invest in perfecting our lived space, the more likely it is we're gonna have actual lifelong, committed travelers to Hawaii," Green stated in an interview.
The new tax revenue will exclusively fund natural resources and climate change initiatives. Funds from the existing state lodging taxes will continue to flow into the state's general fund and help fund Honolulu's rail line construction.
John Pele, Maui Hotel and Lodging Association's executive director, supports the cause but questions if Hawaii is becoming too expensive for tourists.
"Will we be taxing tourists out of wanting them to come here? That remains to be seen," Pele remarked.
Initially, the legislation proposed a larger increase, but lawmakers toned it down in response to industry concerns. Republican Rep. Linda Ichiyama, vice speaker of the House, explained the decision:
"We heard the concerns about how do we make sure that we are able to sustain our industry as well as find new resources to address the needs for environmental sustainability. So it was a balance."
Visitors like Zane Edleman from Chicago can see the extra cost pushing some travelers to choose cheaper destinations like Florida. However, Edleman believes they might change their minds if Hawaii demonstrates where the funds are going and shows tangible results from the investments.
"If you really focus on the point - this is to save the climate and actually have proof that this is where the funds are going, and that there's an actual result happening from that, I think people could buy into it," Edleman said.
This new law is a testament to Hawaii's proactive approach to climate change adaptation and disaster mitigation. The state is taking a significant step in securing the future by investing in environmental restoration, infrastructure resilience, and wildfire prevention programs.
- The new law in Hawaii, aimed at combating climate change and protecting the environment, will add a 0.75% tax to the existing lodging tax and an 11% tax on cruise ship bills.
- Experts recognize this as the first state lodging tax in the nation exclusively dedicated to environmental protection and climate change initiatives.
- Governor Josh Green is optimistic that tourists will be willing to pay the increased tax to safeguard Hawaii's shorelines and communities.
- The new tax revenue will only fund natural resources and climate change initiatives, while funds from the existing state lodging taxes will continue to contribute to the state's general fund and Honolulu's rail line construction.
- John Pele, the executive director of the Maui Hotel and Lodging Association, supports the cause but worries about the impact of increased costs on tourism.
- In response to industry concerns, lawmakers have toned down the initial proposal for a larger increase in the lodging tax.
- Visitors like Zane Edleman from Chicago acknowledge the additional cost might push some travelers towards cheaper destinations, but they believe proof of fund utilization and tangible results could persuade tourists to continue visiting Hawaii.
- This new legislation demonstrates Hawaii's commitment to climate change adaptation, disaster mitigation, and investment in environmental restoration, infrastructure resilience, and wildfire prevention programs.
