Hawaii has enacted groundbreaking legislation to raise the hotel tax from 9.25% to 11% starting January 2026, aiming to generate $85-$100 million annually to combat climate change. This tax will support initiatives to alleviate coastal erosion, flooding, and wildfires that threaten the islands. Lawmakers emphasize the need to protect local communities while also accommodating tourism. Governor Josh Green supports the bill, viewing it as a pivotal step for environmental stewardship, especially after previous attempts to implement a tourist entry fee faced constitutional challenges.
Hawaii is the first state in the nation to set aside tax revenue for the purpose of protecting the environment from the effects of climate change.
"Our residents and communities deserve to be protected," state Rep. Adrian K. Tam said at Friday's adjournment.
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