The ink is dry. Hawaii has officially become the first state in the nation to impose a climate tax. It’s called the Green Fee. The name sounds harmless. The impact is anything but.
Senate Bill 1396 is now law. It tacks on a 0.75% increase to the Transient Accommodations Tax. That means every hotel stay, every short-term rental, every cruise ship docking in the islands will now carry a new surcharge. The state expects this to rake in $100 million annually.
Hawaii recently passed legislation introducing the first climate tax in U.S. history.
“Senate Bill 1396… creates what’s being called a climate impact fee, also known as the Green Fee.”
“The bill is projected to raise an estimated $100 million a year.” pic.twitter.com/4oPiiHO1yq
— Wide Awake Media (@wideawake_media) June 15, 2025
This isn’t a symbolic gesture. It’s a full-scale revenue engine. The money will be funneled into climate resilience projects. Think wildfire prevention, coral reef restoration, flood mitigation, and invasive species removal. The state says it’s about protecting the land. But the math tells a different story.
Hawaii’s tourism industry pulled in over $19 billion last year. That’s the lifeblood of the state’s economy. Now, lawmakers are tapping that stream to bankroll environmental programs. The fee kicks in January 1, 2026.
The burden won’t fall on locals. That’s the pitch. Governor Josh Green made it clear. “We can’t just tax the local people anymore,” he said. So the tourists will pay. But make no mistake. When the cost of visiting rises, the ripple hits everyone.
Cruise ships, long exempt from the TAT, are now in the crosshairs. For the first time, they’ll be taxed under this new law. That’s not a tweak. That’s a structural shift.
The Climate Advisory Team, formed after the Maui wildfires, pushed this through. Their recommendation was simple. Use the tourism tax to fund climate defense. The legislature agreed. The bill passed. The governor signed.
Supporters say it’s a model for other states. A blueprint for climate funding without touching residents’ wallets. But the implications stretch further. Hawaii is setting a precedent. A state-level climate tax, aimed squarely at visitors, now exists.
This is not a drill. It’s a test case. If it works, others will follow. If it falters, the backlash will be swift.
The money will be distributed through grants. Local nonprofits and agencies will apply. The legislature will decide who gets what. That’s a lot of power. That’s a lot of money.
The timing is no accident. After the fires, after the floods, after the headlines, the political will was there. The Green Fee is the result.
Whether this becomes a national trend or a cautionary tale depends on what happens next. For now, Hawaii has drawn the line. Tourists will pay to protect paradise.
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