HAWAII has been blocked from enforcing a proposed 11% tax on cruise ships, just minutes before the impost was due to start on 01 Jan (CW 01 Sep 2025). A federal appeals court ruling saw Cruise Lines International Association (CLIA) win an injunction against the state, which sought to include...
HAWAII has been blocked from enforcing a proposed 11% tax on cruise ships, just minutes before the impost was due to start on 01 Jan (CW 01 Sep 2025).
A federal appeals court ruling saw Cruise Lines International Association (CLIA) win an injunction against the state, which sought to include cruise lines under its transient accommodation tax.
The fee includes a specific levy to mitigate climate-related issues, which would have resulted in cruise lines having to pay tax based on the time they spent in port in Hawaii.
CLIA argued that including cruise lines in the tax breached the US Constitution and would discourage travellers from visiting the state.
The US Department of Justice backed CLIA’s argument last year, saying the green fee “aims to extort American citizens and businesses” and flies in the face of federal law” (CW 25 Nov 2025).
Despite the ruling granting the injunction, the Hawaii attorney general’s office maintained the new tax is lawful and it will be ratified during the appeal hearing.
