Norwegian Cruise Line has started charging Hawaii taxes on passenger stays, including a new “green fee,” despite a court order that prohibits local tax officials from collecting these taxes on cruise stays. This decision coincides with the cruise industry’s efforts to challenge the taxation in court.
A federal appeals judge issued an injunction on New Year’s Eve to block tax collection from cruise ships just hours before it was set to commence. Norwegian representatives stated that they would refund passengers if the court rules in favor of the industry.
Uncertainty remains about whether other cruise lines will impose similar charges. Oceania Cruises confirmed that its upcoming cruise to Hawaii will be tax-free, while Royal Caribbean deflected inquiries to an industry association.
Passengers, including Don Yons, expressed frustration upon receiving unexpected bills for the tax, believing the injunction would prevent such charges. Some crew members cited corporate directives to continue tax collection despite the injunction.
The green fee, part of Hawaii’s tax increase, aims to raise approximately $100 million annually for environmental protection. The cruise industry’s share accounts for about 10% of this revenue. The litigation is ongoing, with the next court hearing scheduled for January 26. Following this experience, Yons and his family stated they would likely refrain from cruising with Norwegian again due to the handling of the tax issue.
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