The proposal could be a hard sell for lawmakers and the hotel industry after recent tax increases in Hawaiʻi.

The chronically underfunded state agency in charge of providing qualified Native Hawaiians with homestead lots wants to tap tourist tax dollars to fund some of its projects.

The state Department of Hawaiian Home Lands plans to ask lawmakers to approve a 1% increase to the Transient Accommodations Tax, which could generate more than $100 million in annual revenue for the department to pursue development and assist its beneficiaries with home loans — a key sticking point for many who have languished for decades on a waiting list for housing lots.

The department also plans to ask lawmakers next year to fund climate mitigation and environmental stewardship projects that align with t

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