Hawaii Dept. of Transportation considers new road usage charge to replace state fuel tax

HONOLULU, HI — Due to the growing popularity of electric vehicles and the increasing fuel efficiency of newer vehicles, the Hawaii Department of Transportation is looking for newer ways to fund the highway systems.

One potential solution that they are seeking public input on replacing the current sixteen cents per gallon state fuel tax with a road usage charge, to raise more funds.

“It’s going to be revenue neutral so we’re not using it to, you know, get more fuel tax. It’s just that we want to have it, you know, fair, where inequitable, where everybody that uses our roads, pay their fair share,” said Jade Butay.

State officials say that the road usage charge would not be an additional tax, and Hawaii drivers would be paying about eight-tenths of a penny for every mile they drive.”

While nothing is set in stone, Butay says his department is exploring various ways to introduce this new fee.

“A lot of people are very interested. I think it’s making for a lively debate because it’s about, you know, the future of, you know, of our highway system. Are we, you know, and for us, as the administrators and management, I mean, we gotta look beyond, you know, today, I mean there’s, you know, we have to find a sustainable funding solution because if we don’t, then we’re not doing our job.”

Once Butay and his team finish conducting 16 community meetings throughout the state, drivers will be sent statements in the fall of how much they could pay under the road usage charge.

For more information, visit hiruc.org.

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  • Mario
    13 May 2019 at 2:03 pm - Reply

    Hawaii is a DEMOCRAT control State,sixteen cents($0.16)per gallon STATE TAX on Gasoline, how about Federal Tax on Fuel.Now another Usage Tax added which can easily passed, there is no opposition party in the Hawaii legislature,NO VOICE from Republican politicians to represent the people. Not fair to Hawaii residence who drive
    Gasoline fed car. They should have added the usage tax on the registration papers of electric vehicle owners..