A federal appeals court on New Year’s Eve blocked Hawaii from enforcing a new tax on cruise ship passengers, one day before it was set to go into effect.
Two judges of the U.S. Court of Appeals for the Ninth Circuit imposed an injunction on the law, reversing a lower court ruling.
The injunction against Hawaii’s tax is in place pending resolution of appeals, Circuit Judges Andrew Hurwitz and Daniel Bress stated in an order.
Cruise Lines International Association, which challenged the tax, did not respond to a request for comment.
“We remain confident that Act 96 is lawful and will be vindicated when the expedited appeal is heard on the merits,” a spokesperson for Hawaii’s attorney general told The Epoch Times via email.
Hawaii had taxed short-term accommodations such as hotels. With Act 96, scheduled to take effect on Jan. 1, the state increased the tax to 14 percent and extended it to cruise ships.
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