Cruise industry takes aim at Hawaii cruise tax proposals

Cruise lines are threatening to sue Hawaii lawmakers over two separate cruise tax bills.

Bills have been passed in both houses for a per-passenger fee or a 11% tax per cabin, which is similar to fees paid by hotels.

Hawaii lawmakers say cruise lines are currently benefitting from lower taxes compared to hotels and vacation rentals.

The cruise industry, led by Norwegian Cruise Line, informed the attorney general and lawmakers it would take legal action.

NCL would be impacted most as it has a ship permanently sailing Hawaii island cruise itineraries.

“We ask that you advise the Governor of these issues and take action to avoid costly and time-consuming litigation should either of these proposals become law,” a letter to the Legislator said.

Daniel Farkas, Norwegian Cruise Line EVP and general counsel said: “It’s simply unconstitutional. It has to do with uniformity as to when a vessel pulls into port. It’s simply so that everyone is treated equally.”

House Tourism Committee Chair Rep. Adrian Tam says cruise lines are currently paying less than the lodging industry.

“All we’re asking for them is to pay their fair share. It should be a no-brainer.”

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