Local authorities approve resolution paving way for tax agreement with cruise ship companies

The Hawaii County Council's committee on governmental operations and external affairs has taken a significant step forward in the implementation of a new statewide tax on cruise ship fares. In a 7-1 vote, the committee approved a resolution that authorises Mayor Kimo Alameda to join an intergovernmental agreement with the state.

If adopted, the resolution will allow the mayor to carry out Act 96, signed into law by Gov. Josh Green in May. This act subjects gross rental proceeds from cruise ship fares to the state's transient accommodations tax.

The agreement will formalize a method to fairly divide the tax revenue among counties, ensuring a fair distribution of funds. Once the resolution is finalised, copies will be sent to Diane Nakagawa, the Director of the Department of Finance for the County of Hawai'i. As the individual responsible for enforcing surcharges, Nakagawa plays a crucial role in the implementation of this new tax.

It is worth noting that Councilman Matt Kaneali'i-Kleinfelder was absent during the vote. The motion to postpone the resolution until Sept. 16 was also voted down, with a 3-5 decision. This means the resolution now awaits full council approval before Alameda can finalise the agreement.

Onishi opposed the motion to advance the resolution, but the majority of the committee saw the potential benefits of this new tax. If adopted, copies of the resolution will be sent to Alameda and, under Hawaii law, to Alameda as well.

The tax will be prorated based on the number of days a cruise ship docks at ports across Hawaii during its voyage. This new tax is expected to generate substantial revenue for the county and state, contributing to the economic growth and development of the region.

The full council will now consider the resolution, and it remains to be seen whether they will approve it and take the next step in implementing this new statewide cruise ship tax.