Tourists In Hawaii Are Now Required To Pay Tourist Tax Aka Green Fee; Details Inside (2024)

FAQs

What is the new tax on visitors in Hawaii? ›

The state of Hawaii proposed a worthy initiative of implementing a tourism tax on visitors. Travelers who visit the island would be charged a flat fee of $25 upon checking into hotels or other short-term rentals. The meager fee that Hawaii proposes would not deter visitors from choosing to vacation in the Aloha State.

The proposed bill aims to impose a $25 climate tax on tourists in order to protect Hawaii's natural resources from an influx of visitors.

During his 2024 state of the state address, Gov. Josh Green proposed charging all tourists a $25 fee when they arrive and check in, saying the “modest fee” would generate more than $68 million in revenue each year.

In 2022, state leaders nearly passed a law to better safeguard Hawaii's imperiled natural resources by raising revenues through a $40 or $50 “green fee” charged to tourists. Proponents hope to build on that momentum this year and push a visitor-impact fee through the House and Senate and onto Gov. Josh Green's desk.

Hawaii Tax Rates, Collections, and Burdens

Hawaii has a 4.00 percent state sales tax rate, a 0.50 percent max local sales tax rate, and an average combined state and local sales tax rate of 4.44 percent. Hawaii's tax system ranks 43rd overall on our 2023 State Business Tax Climate Index.

If you have income from the USA, you may have to file a USA income tax return even if you are only visiting this country. This publication summarizes for you the requirements of USA income tax law. See If You Need Help at the end of this publication for how to get more information.

Hawaii senators recently revived Senate Bill 304, which is designed to support the maintenance of Hawaii's natural and cultural resources through a so-called “green fee.” If passed, visitors — which the bill defines as “a person in Hawaii who is not a resident of Hawaii” — would be charged a $50 impact fee used to ...

What is green taxation? Environmental or green taxes include taxes on energy, transport, pollution and resources. Energy taxes are taxes on energy products and electricity used for transport, such as petrol and diesel, and for other purposes, such as fuel oils, natural gas, coal and electricity used in heating.

An environmental tax, ecotax (short for ecological taxation), or green tax is a tax levied on activities which are considered to be harmful to the environment and is intended to promote environmentally friendly activities via economic incentives. One notable example is a carbon tax.

For a third consecutive year, state lawmakers have chosen to not pass a fee that would be charged mainly to tourists to better manage and protect Hawaii's fragile environment, which remains under heavy strain from constant foot and vehicular traffic and under siege by invasive species.

What is the hotel tax in Hawaii? ›

All guestroom and suite rates are subject to the prevailing Hawaii State General Excise Tax at 4.712%, Hawaii Transient Accommodations Tax at 10.25% and Oahu Transient Accommodations Tax at 3% (combined rate of 17.962%).

Courses in more affluent areas or those with higher-end amenities will have higher greens fees than those located in rural areas or with fewer amenities. In addition, the cost of greens fees can also depend on a variety of factors such as time of day and day of the week.

"A green fee would fund land and water protection and stewardship projects that would improve our ability to care for our unique and fragile resources." Public testimony showed a large amount of support, but some opposition is worried it will further deter visitors from traveling to the Islands.

Perceived green costs are consumer-perceived time and conscious effort to access for eco-friendly products or services.

Tourists travelling to Hawaii may soon have to pay climate tax as per a proposal to safeguard beaches there, according to a report. Lawmakers in Hawaii are on the verge of passing a novel initiative: a $25 climate tax targeting tourists who flock to the Aloha State.

All guestroom and suite rates are subject to the prevailing Hawaii State General Excise Tax at 4.712%, Hawaii Transient Accommodations Tax at 10.25% and Oahu Transient Accommodations Tax at 3% (combined rate of 17.962%).

Many countries across Europe including Spain, Greece, and Germany have implemented fees for foreign visitors to help support local costs of doing business, especially during the busy summer months. It's similar to that of a hotel occupancy tax that American travelers may be more familiar with for domestic stays.

Hawaii is the latest destination to consider taxing visitors to help address the effects of climate change and overtourism, two issues that are particularly front of mind in the Aloha State following the devastating Lahaina fire.