On December 31, the Ninth Appellate Court partially blocked implementation of Hawaii’s “Green Fee” — a climate change-related tax — ahead of the state’s plan to fully enforce it starting January 1, 2026.
The climate change fee currently imposes an 11% tax on tourists’ stays, including hotel and vacation rentals. However, the last-minute decision of a federal appeals court temporarily pauses the requirement for cruisers to pay the tax.
The decision comes after Cruise Lines International Association (CLIA) and other plaintiffs filed a lawsuit in August against Hawaii. They claimed that the state’s new tax would financially burden its cruise operators and guests. Moreover, the lawsuit argued that the fee would unconstitutionally tax cruises entering Hawaii’s ports. Now, the Green Fee for cruises is blocked while the tax’s constitutionality is argued in court, and the involved parties reach a resolution.
What Else Should Travelers Know About The Hawaii Green Fee?
Hawaii’s “Green Fee,” also known as Act 96, is the first of its kind in the country. The state’s Governor, Josh Green, signed off on the law in May 2025. A press release from the leader’s office declared that the Green Fee marks “a historic moment for Hawaii’s climate, environment, and communities.” The statement added that the tax “addresses the critical need to build resiliency against the impacts of climate change…”
The statement noted that protecting Hawaii is essential as natural disasters become more frequent and intense. Moreover, officials believe the tax will generate $100 million in annual revenue, with the funds collected going toward environmental restoration, conservation efforts, and projects that support sustainable tourism.
According to the Associated Press, the Green Fee would also allow counties in Hawaii to charge an individual 3% tax.
Per the publication, a spokesperson for the Hawaii attorney general’s office, Toni Schwartz, commented in an email about the Green Fee’s partial blockage.
“We remain confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits,” said Schwartz.
