Federal judge upholds Hawaii's new climate change tax on cruise passengers

A federal judge's ruling allows Hawaii's new tourist tax, which includes a levy on cruise ship passengers, to take effect in 2026. The tax aims to raise funds to address climate change issues like eroding shorelines and wildfires. Officials expect it to generate nearly $100 million annually. The levy increases rates on hotel stays and imposes an 11% tax on cruise fares, prorated for days spent in Hawaii ports. Cruise Lines International Association challenged the tax, arguing it violates the Constitution and could hurt tourism. Plaintiffs will appeal the decision.