Courts and Taxation

On Dec. 31 a two‑judge panel of the 9th U.S. Circuit Court of Appeals issued an injunction blocking enforcement of Hawaii’s Act 96 cruise‑ship tax — an 11% tax on prorated gross cruise fares (with up to a 3% county surcharge, for a possible total of 14%) set to take effect Jan. 1, 2026 — while appeals proceed. The U.S. government joined Cruise Lines International Association in appealing after a district judge had upheld the law, and Hawaii’s attorney general says the state remains confident Act 96 is lawful even as officials note the levy was projected to raise about $100 million for climate and resiliency programs and industry warns it could deter visitors and harm tourism jobs.