Overview

• Governor Josh Green signed Act 96 on May 28, making Hawaii the first US state to levy a climate impact fee on hotel rooms, vacation rentals and cruise ship bills.
• The law raises the transient accommodations tax from 10.25% to 11% starting January 1, 2026 and imposes an 11% charge on cruise bills beginning July 2026.
• Officials estimate the new fees will generate almost $100 million a year to support shoreline restoration, distribution of hurricane clips and removal of flammable invasive grasses.
• Lawmakers routed the revenue into the state’s general fund rather than a dedicated account and directed the governor to submit specific funding requests for conservation and resilience efforts.
• Hawaii’s hotel industry backed the measure as a means to safeguard the visitor experience and natural environment after the 2023 Maui wildfires devastated Lahaina.