Hawaii bound? Visitors could soon pay a climate tax

People visiting Hawaii could potentially face a $25 climate tax in the future.

That could become the case if state lawmakers pass a House bill that includes a provision creating an additional monthly $25 tax “on each furnishing of a transient accommodation” for tourists.

The monthly fee would include transient accommodations provided to visitors “for cash or charge, at no charge, on a complimentary or gratuitous basis, for a nominal charge, or in exchange for points, miles or other amounts provided through a membership, loyalty, or rewards program,” per the latest version of the bill. Meanwhile, places like health care facilities, school dorms, military housing and nonprofits would have exemptions.

State lawmakers put forward the $25 tax as part of a piece of proposed legislation meant to tackle the “compelling and urgent need to increase funding to prevent climate crises and fully respond” to crises like the deadly Maui wildfires “when they occur.”

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Hawaii “faces significant pressure from climate change and the heavy use it receives from persons traveling to enjoy the State’s natural resources,” putting it at “greater risk” for things like natural disasters and pollution, the bill said.

The bill was introduced in late January and directs funds toward wildfire prevention, shoreline restoration, infrastructure protection and other climate change-related efforts.

That came shortly after Democratic Gov. Josh Green proposed the addition of what he called a “climate impact fee” while giving his state of the state address. 

“I believe this is not too much to ask of visitors to our islands,” he said at the time of the $25 charge. “Hawaii’s natural resources – our beaches, forests, and waterfalls – are an essential part of our culture and our way of life.”

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The governor has said the island could see over $68 million from it on a yearly basis. His office also submitted testimony to the state legislature in support of the $25 tax last week.

Some have expressed opposition to it. Concerns have included possible added strain to the state’s recovering tourism sector and accommodation providers incurring costs to adjust to the new policy.

Other strategies have also been raised as options, including upping the existing hotel tax and charging for park licenses, The Wall Street Journal reported.

Tourism is an important part of Hawaii’s economy. Maui’s in particular took a serious blow due to August wildfires that left 115 people dead and many homes and businesses wrecked.

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In December, the Hawaii Tourism Authority said the state notched more than 9.4 million visitors over the course of last year. Those tourists spent $20.78 billion and generated $2.41 billion in tax revenues, according to the agency.

The house bill aiming to implement the additional $25 transient accommodations tax for future tourists most recently was referred on Friday to the committee on finance.