Washington: Hawaii legislators have adopted a “first of its kind” bill that increases the US hotel tax to finance climate change help, the Governor’s office said.
Hawaii governor Josh Green said he intended to approve the legislation that increases short -term housing tax such as hotels and rentals by 0.75%. “This legislation, which I intend to sign, is the first of its kind in the country,” Green said in a statement published by his office on Friday. “Hawai’i really establishes a new standard to approach the climate crisis.”
The State, which welcomes around 10 million annual visitors, currently imposes a tax on transitional accommodation of 10.25% (TAT) on vacation and other rentals.
The counties of Hawaii also impose an additional tax of three percent, which, with the new increase, will carry the tax on the overall hotel at 14% throughout the state.
The increase in taxes will increase around $ 100 million a year for the attenuation of disasters in the state, according to the Governor’s office. He described the levy as a “climate impact” or “green expenses”, adding that he will “help the islands to mitigate the impacts of climate change”.
A devastating forest fire swept the Hawaiian island of Maui in 2023, killing more than 100 people and causing billions of dollars in damage.
“Given the devastation we saw on Maui in August 2023, this measure is crucial because it will help us to face the risk of forest fire resulting from the crisis of climate change,” Green said in the press release.
