HONOLULU (HawaiiNewsNow) - A consortium of cruise ship operators and tour businesses have filed a lawsuit in federal court to block the state’s new law to tax cruise ships in the same way as hotels.
Cruise Lines International Association, Inc. v. Suganuma contends that Hawaii is blatantly violating the U.S. Constitution by imposing the 11% tax on out-of-state cruise passengers in January, and letting the counties add an extra 3%.
It’s the first time cruise ships would have to pay the transient accommodations tax charged to guests at hotels and vacation rentals.
“Here you have a floating hotel, right? You have a floating hotel,” said state Sen. Lynn DeCoite, who chairs the Senate Economic Development and Tourism Committee. “The hotel industry has paid their fair sure for the past years.