Hawaii will increase its transient accommodations tax (TAT) from 10.25% to 11% starting January 2026, with a focus on funding environmental protection. The tax revenue will fund climate change mitigation efforts following the passage of Senate Bill 1396. The increase of 0.75% will contribute to the state's general fund for environmental purposes. Despite pushback from the hospitality industry regarding potential visitor declines, Governor Green emphasizes the importance of this bill in addressing climate challenges and protecting Hawaiian lands.
Hawaii will increase the transient accommodations tax from 10.25% to 11% starting January 2026. This revenue is designated for environmental protection against climate change.
The addition of a 0.75% increase to TAT is aimed at addressing climate and hazard mitigation projects, following consultations by the Governor with various stakeholders.
Despite opposition from hoteliers and other organizations fearing a drop in visitor numbers, Governor Green believes the bill shows a strong commitment to environmental protection.
The transient accommodations tax is applied to all lodgings, including hotels and short-term rentals, ensuring the funding benefits different types of visitors to Hawaii.
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