[Congressional Record Volume 172, Number 109 (Tuesday, June 30, 2026)]
[Extensions of Remarks]
[Page E638]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INTRODUCTION OF THE CRUISE SHIP FAIR SHARE ACT
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HON. ED CASE
of hawaii
in the house of representatives
Tuesday, June 30, 2026
Mr. CASE. Mr. Speaker, I rise today to introduce the Cruise Ship Fair
Share Act, which confirms that states, territories, and other non-
federal entities may levy taxes on cruise ships, their passengers, and
their crew when those vessels are operating as tourist accommodations.
My legislation is prompted in part by recent litigation by cruise
ship companies challenging Hawaii's application of its transient
accommodations tax (TAT), a tax on all short-term accommodations like
hotels, vacation rentals, timeshares and similar locations, to cruise
ship operations in Hawaii waters at Hawaii ports. The TAT helps fund
public infrastructure and environmental stewardship that is impacted by
tourism operations, thus supporting both tourism and community impacts
and resilience. Cruise ships, however, have challenged application of
the TAT on federal grounds although accommodations on cruise ships are
functionally no different from other transient accommodations and have
the same impacts on our communities.
For Hawaii, these issues are about more than tax policy alone. Our
islands face growing demands to maintain public infrastructure,
preserve fragile ecosystems, protect coastal resources and strengthen
community resilience in the face of environmental challenges. At the
same time, visitors and visitor-serving industries benefit enormously
from Hawaii's natural beauty and unique environment.
The Rivers and Harbors Appropriation Act, which this bill would
amend, was never intended to exempt ships from generally applicable
taxes. This bill confirms that states and territories have the ability
to ensure that all sectors of the visitor industry, including cruise
ships, help support the stewardship and preservation of the places and
resources that make those destinations possible, and that sufficient
resources remain available to protect them for future generations. As
this bill would make clear, federal law does not place cruise ships in
a preferred position over hotels, vacation rentals and other visitor
accommodations in who does and does not share the responsibility of
addressing operations impacts.
I urge my colleagues to support my measure and confirm the right of
states and territories to ensure that those who benefit from their
communities contribute fairly to their upkeep and future.
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