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Senate approves 1% increase in transient accommodations tax and extends TAT to cruise-ship activity
Summary
The Senate approved SB 13 96 CD2, which raises the statewide transient accommodations tax (TAT) by one percentage point and extends TAT coverage to certain cruise-ship activity. The floor debate exposed concerns about impacts on neighbor-island economies and resident affordability; the bill passed 23'.
HONOLULU — The Hawaii State Senate voted to approve Senate Bill 13 96, conference draft 2, a measure that raises the transient accommodations tax (TAT) by 1 percentage point on lodging and applies a TAT to cruise-ship activity, after floor discussion that included island-economy and equity concerns.
Senators debating the measure said it would raise revenue for state priorities including climate change mitigation, restoration and disaster resilience. Supporters argued the one-point increase represents a modest change that will supply funding for projects…
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