Appeals Court Blocks Hawaii's Climate Change Tourist Tax On Cruise Ships

A federal appeals court blocked Hawaii's new tax on cruise ship passengers on New Year's Eve, just before implementation. The Ninth Circuit judges issued an injunction, reversing a lower court decision pending appeal resolution. The Cruise Lines International Association challenged the tax, and Hawaii's attorney general's office didn't immediately comment. Hawaii aimed to increase the tax to 14 percent and extend it from short-term accommodations to cruise ships. The state cited a "climate emergency" as justification, allocating tax revenue toward climate action. The association argued the tax violated the U.S. Constitution and the Rivers and Harbors Appropriation Act (RHA). A district judge initially declined to block the law, citing the importance of state taxes. The association and the U.S. government appealed to the Ninth Circuit, leading to the injunction. The appeals court considered the standard for injunction similar to that of the lower court's preliminary injunction assessment. The court considered the likelihood of success for the plaintiffs in reaching a decision on the injunction.