Honolulu, Hawaii — In a groundbreaking move, Hawaii lawmakers are set to increase the tax on travelers staying in hotels, vacation rentals, and other short-term accommodations. The additional funds aim to bolster the state’s efforts in combating climate change.
Starting January 1, the daily room rate tax will see an increment of 0.75%, pending approval from both the House and Senate on Wednesday. Given the Democratic supermajority and agreement among party leaders, the bill is expected to pass smoothly. Governor Josh Green has expressed his intention to sign it into law, highlighting Hawaii’s pioneering role in environmental initiatives.
“We are taking decisive action to protect our islands and communities from the impacts of climate change,” said Governor Green. “This initiative will fund vital projects that safeguard our environment and people.”
The revenue from the tax hike is earmarked for projects such as replenishing sand on eroding beaches, assisting homeowners in installing hurricane clips on roofs, and removing invasive grasses — like those that fueled the devastating wildfire in Lahaina earlier this year.
“Investing in these areas is crucial,” stated a senior policy analyst at the Tax Foundation, Andrey Yushkov. He noted that Hawaii appears to be the first state allocating lodging tax revenue specifically for environmental protection and climate change efforts.
The move reflects Hawaii’s commitment to sustainability and could set a precedent for other regions grappling with climate-related challenges.
