Hawaii just became the first state in the U.S. to pass a tourism-based climate tax. What starts with hotel rooms could quickly spread to every corner of the economy.
Key Facts:
- Governor Josh Green signed Act 96, raising Hawaii’s transient accommodations tax by 0.75% starting January 1, 2026.
- The new “Green Fee” will fund climate resiliency projects and is expected to generate up to $100 million annually.
- The tax applies to hotel stays, short-term rentals, and—for the first time—cruise ships docking in Hawaii.
- Visitors staying at a $300-per-night hotel will pay an additional $2.25 per day.
- Residents staying in local resorts or hotels will also be subject to the tax.
The Rest of The Story:
Hawaii’s new “Green Fee” is the first of its kind in the country, targeting the tourism industry to raise money for what state officials call “climate resiliency.”
Governor Josh Green announced the plan with a press release praising Hawaii’s leadership: “Hawaiʻi cannot wait for the next disaster… The Green Fee will provide the necessary financing to ensure resources are available for our future.”
The policy is partly justified by referencing the 2023 Maui wildfires, which caused $5.5 billion in damage.
However, those fires were widely attributed to failures in emergency response and water resource management, not climate change.
The fee is part of Hawaii’s broader plan to reduce carbon emissions 70% by 2030 and hit zero by 2045.
The strategy includes a carbon tax rate of $80 per ton by the end of the decade.
🚨 LUNACY: Hawaii will now charge a "climate impact fee" on visitors.
This tax will fund "climate change" projects, and be collected on travelers staying in hotels, vacation rentals and cruise ships. pic.twitter.com/ZQX2cldQPf
— Eric Daugherty (@EricLDaugh) May 29, 2025
Commentary:
This tax is being sold as a small price to pay for a greener future, but it sets a dangerous precedent.
Hawaii’s government is laying the foundation for taxing anything and everything under the guise of climate policy.
That $2.25 a night might seem minor now—but once this revenue stream is established, the fees are unlikely to stop there.
Progressive governments have long pushed for carbon taxes to fund their ever-growing bureaucracies.
Now, Hawaii is creating a model that other blue states may follow.
Today it’s tourists footing the bill; tomorrow it could be residents paying carbon surcharges on groceries, gasoline, or even local services.
Despite the governor’s lofty rhetoric, the real issue here isn’t resilience—it’s revenue.
Hawaiian officials have already hinted that more taxes could be layered onto rentals, cruises, and possibly other leisure activities.
The state, known for already having one of the highest tax burdens in America, is putting both its own citizens and its largest industry—tourism—at risk.
Hawaii relies heavily on tourism for its economy.
Adding more taxes under the assumption that visitors will just keep coming regardless is risky at best.
Eventually, some travelers may choose other destinations with fewer fees and less government meddling.
What’s worse, residents aren’t exempt.
Locals enjoying a weekend staycation or attending an event at a resort will pay the same tax.
This undercuts the idea that the Green Fee only impacts “outsiders.”
It’s one more way big government is reaching deeper into everyone’s pockets.
The fact that some lawmakers are pushing for “kickbacks” to residents is telling.
It shows they know this won’t be popular.
But small refunds won’t undo the damage of ever-expanding carbon-based taxation.
Ultimately, this policy looks more like a cash grab than a genuine solution to environmental concerns.
The people of Hawaii may have voted for it, but they’re about to learn the hard way what top-down climate governance really costs.
The Bottom Line:
Hawaii’s new Green Fee may seem minor, but it opens the door to widespread taxation in the name of climate action.
Visitors and residents alike will be on the hook, and if it works in Hawaii, expect copycat policies in other Democrat-run states.
For now, it’s a tax on hotel rooms.
Tomorrow, it could be a tax on everything you touch.
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