Bill > SB1396

This bill aims to address Hawaii's climate emergency by modifying the Transient Accommodations Tax (TAT) and using the additional revenue to support environmental and tourism initiatives. Starting January 1, 2026, the bill increases the TAT rate from 9.25% to 10% for most accommodations and introduces an 11% rate for cruise ship fares, which will now be subject to taxation based on the days spent docked in Hawaii. The bill requires the Governor to request an equivalent amount of general funds to be allocated equally to three key areas: protecting and restoring natural resources, increasing infrastructure resilience to climate-related disasters, and improving the visitor experience while mitigating tourism's environmental impact. Additionally, the bill amends the Special Land and Development Fund to expand its allowable uses, including debt service, financing agreements, and broader natural resource protection. The legislature's findings emphasize that economic development is intrinsically linked to environmental stewardship, and investing in sustainability will help protect Hawaii's unique ecosystems, cultural heritage, and long-term economic stability. By proactively addressing climate change and supporting conservation efforts, the bill seeks to position Hawaii as a global leader in sustainable innovation and eco-friendly tourism.

Agriculture and Natural Resources, Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1396&year=2025