Democrat Governor Signs Legislation Establishing Nation’s First ‘Climate Change’ Tax For Visitors

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Hawaii Gov. Josh Green signed legislation establishing the nation’s first tax on tourists related to climate change.

The first-of-its-kind ‘green fee’ incorporates a tax on hotel room and vacation rental stays to fund climate change projects.

“It’s important so people see that where we have shoreline erosion near hotels, we’re able to protect these incredible assets,“ Green said, according to Hawaii News Now.

”Where we have people being displaced, we’re able to help them, where we see sea level rise coming up, we can adapt and we can actually have these resources from the hard monies and also likely bonds from these dollars to help us go forward with large projects as the legislature sees fit as the people across our state express need,” he added.

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From Hawaii News Now:

Starting Jan. 1, visitors staying at Hawaii hotels and short-term rentals will have to pay an added 0.75% to the existing transient accommodations tax (TAT).

That means a $400 night stay would cost an additional $3.

Advocates say it’s a small price to pay to protect the aina.

“If we don’t do proper destination management, if we don’t keep our beaches properly tended to, if we don’t make sure the parks are perfect, people will stop coming here,” Green said.

Starting in 2026, tourists in land accommodations won’t be the only ones paying the transient accommodations tax. For the first time, cruise ship passengers will too, prorated for the number of days their vessel is in a Hawaii port.

The fee is expected to raise about $100 million a year for projects that include fortifying fire breaks, upgrading technology, and combating erosion and invasive species.

Green said his climate advisory team will work with lawmakers, state agencies and land owners to set priorities.

Per USA TODAY:

Previously, cruise ship passengers had bypassed the TAT, but the new law seeks to promote “equity across the tourism industry” by ensuring all travelers contribute to protecting the islands’ economic and natural resources.

The bill came as a response to the growing frequency of natural disasters exacerbated by climate change, specifically the 2023 Maui wildfires, the deadliest wildfire in the country in over a century that decimated the community of Lahaina. In just hours, over 100 people were killed with homes, businesses and cultural sites burnt to ashes.

After the fires, the governor formed the Climate Advisory Team (CAT) to develop climate disaster policy recommendations. A key measure from the group was to secure a source of funding for climate change mitigation and disaster relief, according to the release.

“The Green Fee bill marks a historic investment in climate disaster resilience and environmental protection,” said Chris Benjamin, the leader of CAT, in a statement. “Using the TAT to fund resiliency projects ensures that the financial burden of safeguarding our aina (island) and people doesn’t fall upon residents alone. We thank the legislature, industry and countless community groups and individuals who advocated tirelessly for this bill.”



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