Joint committees advance bill to add $20 visitor surcharge for environmental stewardship

The House Committee on Tourism and the Committee on Water and Land on Feb. 13 voted to pass House Bill 504, as amended (HD1), advancing a plan to levy a $20 per-night transient-accommodation surcharge on stays booked using points, miles or other loyalty rewards and to appropriate the proceeds to the Department of Land and Natural Resources (DLNR) for protection, management and restoration of the state’s natural resources.

Supporters told the joint hearing the state faces a large funding shortfall for environmental protection and that visitors should help cover stewardship costs. Opponents and agency staff raised administrative and market concerns about the proposed surcharge and how it would be implemented.

Why it matters: Proponents said dedicated, recurring funding could fill gaps in programs that manage watersheds, reefs and wildfire response; opponents warned a per-night surcharge tied to rewards redemptions would be hard to verify and could have economic effects on the tourism market. Committee chairs recommended an HD1 that delays the surcharge’s effective date to Jan. 1, 2027 and advances the bill to the next legislative stage.

What supporters said Jocelyn Herbert, of the Care for Aina Now leadership committee, said the bill would both create a dedicated funding source and give visitors a way to contribute. “We found there's a $560,000,000 annual shortfall in addressing these threats,” Herbert said, listing wildfire, flooding and coral bleaching as examples of growing risks.

Other conservation and community groups testified in favor. Hannah Lisiak of the Ocean Legislative Task Force told members the task force — and the Care for Aina Now coalition — urged the committees to “build a safety net for our environment.” Angela Britton, chief of operations and philanthropy for the Hawaiian Islands Land Trust, framed the proposal in local terms of kuleana, saying visitors who benefit from Hawaii’s resources should help care for them. The Nature Conservancy’s Elizabeth Benisek cited polling — previously submitted in testimony — that found roughly 75% visitor support overall (85% among repeat visitors) and 63% voter support in a 2023 poll.

What opponents and agencies said A Department of Taxation representative told the committees the bill contains no refundable tax credit for residents and cautioned that the proposed $20 surcharge tied to points, miles or rewards would be administratively difficult to verify. “The $20 surcharge ... creates administrative difficulties because ... it’s really hard for us to verify what the value of the miles are or what the bookings are,” the Department of Taxation representative said, explaining that current reporting systems make income-based verification easier than verifying the value of loyalty redemptions.

Tom Yamachika of the Tax Foundation of Hawaii said he shared the bill’s policy goals but warned of economic risks. “They cannot vote for you at the ballot box, but they can vote with their feet,” Yamachika said, arguing higher costs could affect visitor demand.

Committee questions and implementation Committee members asked whether the surcharge could be offset for residents through a refundable tax credit and whether staff could distinguish resident versus visitor contributions through existing reporting. The Department of Taxation answered that the bill does not include a refundable credit and reiterated verification challenges.

Lea Laramie of the Climate Change Mitigation Adaptation Commission, which is administratively attached to DLNR, said DLNR has an existing “story map” and a grants-to-projects bridge with candidate resilience and community projects that could receive funding. Laramie and other witnesses described a likely implementation path that would include a grants program to distribute funds to DLNR divisions and community organizations.

Votes at a glance - House Committee on Tourism (joint): Chair’s recommendation — pass with amendments (HD1). Recorded: Chair and vice chair — aye; Representative Illegan — aye; Representative Todd — aye. Representatives Holt, Hussey and Matsumoto — excused. The committee adopted the chair’s recommendation. - Committee on Water and Land (joint): Recommendation — pass with amendments. Recorded: Chair and vice chair — aye; Representatives Ichiyama, Iwamoto, Morikawa and Souza — aye; Representative Shimizu recorded remarks “with reservations” in committee discussion. Representatives Bilotti and Woodson — excused. The committee adopted the recommendation.

Next steps Committee chairs said they would advance HB 504 as HD1, noting Department of Taxation’s implementation concerns and setting the surcharge effective date at Jan. 1, 2027. The bill will continue through the legislature for further consideration and possible amendment.

Ending note During the same hearing members and witnesses repeatedly emphasized connecting any new revenue to community-driven conservation projects; DLNR and the Climate Change Mitigation Adaptation Commission pointed to existing project lists and an online story map as starting points for allocating funds.