HI SB2698

Establishes a $10.00 per passenger fee on cruise ships docking at Hawaii's commercial harbors, assessed at each port entry in addition to existing port user fees.

Creates the Cruise Ship Special Fund to collect the passenger fees, public/private contributions, and interest, with funds restricted to port facility and capital improvement projects supporting cruise ship operations.

Repeals the existing Transient Accommodations Tax (TAT) on cruise ship fares retroactive to January 1, 2026, removing cruise ships from the 11% TAT rate previously applied to prorated gross rental proceeds.

Removes cruise ship-related TAT revenue from the budget requirement directing funds toward climate change resilience and tourism destination management projects.

Takes effect July 1, 2050, with the TAT repeal provisions effective retroactively to January 1, 2026.