Taxing Tourists to Generate Revenue to Address the Negative Impacts of Climate Change on Hawai‘i Natural Resources

Sumner La Croix, James Mak, Briefs, Economics of Taxation, Tourism

UHERO BRIEFS ARE CIRCULATED TO STIMULATE DISCUSSION AND CRITICAL COMMENT. THE VIEWS EXPRESSED ARE THOSE OF THE INDIVIDUAL AUTHORS. WHILE BRIEFS BENEFIT FROM ACTIVE UHERO DISCUSSION, THEY HAVE NOT UNDERGONE FORMAL ACADEMIC PEER REVIEW.

There is widespread agreement among Hawai‘i residents that the state government needs to spend more money on natural resource stewardship. A critical question is how best to pay for it.

In his January 2024 State of the State Address, Governor Josh Green said that “we must do more to protect our beaches, parks, and other natural treasures from extreme weather fueled by climate change—without raising taxes or fees on Hawai‘i residents”. He proposed to enact a Climate Impact Fee (hereafter “Climate Fee”) on visitors to provide the needed resources. HB2406 HD2 (and its companion bill in the Senate, SB3095) proposes to “Levy an additional $25 tax on transient accommodations.”